Opportunities: Blockchain

The adoption of IoT (Internet of Things):

The blend of physical and digital worlds, IoT has been around some time now; 2017 saw around 31% increase in IoT connected devices, i.e. around 8 billion, according to an analysis firm, Gartner. This is set to reach 20 billion connected devices by the end of 2020. Now, since IoT is not the only serious technology on the run, accounting backbone, blockchain technology is capable to fix one big problem of IoT, i.e. security infrastructure.

In addition to the security fix, IoT can now expand its capabilities, that is ensuring a reliable and fast connection. Means, that in so many ways, Blockchain and IoT are a perfect pair. Blockchain’s inevitable decentralized network and embedded smart contracts are the significant solutions for IoT security concerns. Let’s have a look at the benefits of convergence of IoT and Blockchain:

Flexible and new jobs in organizations Real-time data analysis and aids Revised customer experience Intelligent machines with a capability of automating tasks Reduction of waste in the supply chain New jobs in flexible organizations

According to me, Blockchain and IoT will be the best of friends in the coming 5 years.

Streamlining business across borders:

To define Blockchain in terms of business; it is a facilitator of automated tracking of every single transaction. Having a potential of at least partially automating accounting and compliance, Blockchain has opened doors to a more transparent auditing, further connecting industries with new global customers, an aim every industry pledges for.

According to Fay Shong, who is the Oil & Gas Strategy Leader of EnY, quotes: “Blockchain has increasing relevance to the oil and gas industry as a mechanism to reduce operating cost. Even more relevant, however, is blockchain’s ability to transform the contracting process given its aptitude to provide a secure form of collaboration across multiple parties”

He continues to mention: “As the oil and gas industry increasingly leverages sensor technology across upstream and downstream assets, the ability for blockchain to store transactions and accounting data directly on these devices can compress process time by connecting assets directly to services contracts.”

Not only this, Blockchain, which was originally created to power cryptocurrencies, can also forge a system of a brand new foreign exchange which can reduce the additional costs involved in doing cross-border business.

Commerce and Government:

The whole framework of global commerce presents a clean opportunity for blockchain implementation. The blockchain is more convincing in this sector as it has a power to create a borderless network architecture, which can enable cross-border transactions instantly. The best part is that it can remove the now-necessary and tiring steps of several approvals. In short, the whole cost of trust that is now heavy on commerce industry can be dropped. Removal of middlemen, transaction fees of SWIFT and delays can materially diminish.

Moving towards the Governments, which are always charged with a host of duties and responsibilities can be now (finally) be discharged for the benefit of citizens. How? Blockchain can be used for safeguarding state and financial services, also assist in establishing unique identity management systems, enable safe document processing, and secure transmission of sensitive information. Since efficiency is the main problem Governments face, and painfully, all the potential progress is slowed down by bureaucratic red-tape, Blockchain can eliminate countless man hours and create a digital ledger of secured information which will be untouched and uncorrupted.