Bill Gates said “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction”.
Most of us have already quite experienced mobile and internet revolution change our life in numerous unimaginable ways. With the emergence of crypto currencies like Bitcoin, future for sure will not be the same. The technology behind Bitcoin – Block-chain is rightly considered to disrupt word economy. Banks will not be the same anymore, so is our life.
“The open and distributed Ledger”. No wonder Block-chain is also called “The global single instance computer”
Functional model of Block-chain as below
– Every transaction is published to all nodes in the network. This brings in much needed transparency
– Miner, any node in the network, can maintain Open ledger ensuring multiple authentic records across the network. This brings security and protection against frauds. The miners are responsible for checking authenticity of transaction and publishing the same for benefit of other miners
– Miner gets rewarded for its contribution and the reward is of much lesser scale. As miners compete for reward, bring in agility to transaction cycle time. Gone are the days of transaction cycle time of days. Bitcoin today claims more than 99% of transactions clocking average of 43 Minutes. This is only the beginning!!
The what and how of Blockchain
Beyond any doubt, investment and adoption of blockchain is on the raise.
A survey by Greenwich Associates indicates about I billion USD investment in the year 2016.
From new players like Ethereum to known technology players like IBM and Microsoft have already published their block chain platform, services.
In May this year, NASDAQ unveiled blockchain services to 100+ global exchange partners. Australian Stock Exchange (ASX) published in its annual report, it is in the process of developing private Blockchain. Likes of Visa and Mastercard are already experimenting with Blockchain.
IBM forecasts more than 65% banks to adopt Blockchain in next 3 years!!! ERP market major, SAP is already building Blockchain connectors to its Hana Cloud platform.
If we observe the Blockchain characteristics, one can easily appreciate ability of Blockchain to
– Secure identity of any resource, asset
– Support decentralized concurrence about authenticity of transaction
– Define smart contracts, with terms recorded in computer language and executable based on events
In summary blockchain can establish “Trusted marketplace” complying by rules of law, compliance, authority, governance in Peer to Peer mode. The potential impact of blockchain is certainly much beyond banking and Finance.
Few Use cases below span across industry segments
Identity Management :
– Individual identity: Voting, Employee credentials, Citizenship, SSN
– Business identity, Small and Medium businesses can establish themselves providing visibility to Tax and legal authorities transparently
– Access to Medical-Health/ legal/Government/Defense records
– Provenance Governance : Authenticity of originality and ownership of precious goods/properties like Diamonds, Arts and antiques, Land, buildings etc
– Customer centric Royalty, reward management
– Community/syndicated financial institutes: Collaborative funding of loans
– IOT : Trusted devices performing transactions using Blockchain
For me, IOT and Blockchain marriage seems quite interesting. Blockchain enables IOT devices to update or validate data, contracts. This for sure will speed up IOT adoption.
Few examples below
– Tileplay, IOT data marketplace intends to provide a platform to enable users trade personal or IOT device data profiles
– Modum.. ensure drug compliance to environment restrictions throughout the journey from manufacturer to consumer
– TransActive Grid, a community marketplace for peer to peer energy transaction and resource control
– Filament : Long range wireless network anywhere platform for IOT
– IBM upbeat about new gen Supply chain that provides end to end visibility
It won’t be a hyperbole, if I predict the emergence of intelligent Bots/Agents on Facebook, Twitter, LinkedIn recommending beneficial block chain services for one’s personal and business consumption based on user/business profile.
Are we heading towards the Facebook, LinkedIn becoming our personal as well as professional portals Or would there be newer portals for everything that we own and do with Blockchain driving it?