Blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole.
——— Bob Greifeld, Chief Executive of NASDAQ
Blockchain technology has the ability to optimize the global infrastructure to deal
with global issues in this space much more efficiently than current systems. ——— Marwan Forzley, Founder of Align Commerce.
Benefits of blockchain technology
As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable. All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking. Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
Decentralization of the technology
Cryptocurrencies may be in the depths of winter, but it’s early spring for new business applications using the technology underlying bitcoin. Take the case of financial record keeping behemoth Depository Trust & Clearing Corp, otherwise known as "DTCC." It's responsible for keeping the books on 90 million transactions a day, representing most of the world's $48 trillion in securities —from stocks and bonds to mutual funds and derivatives. Decades ago it was all done on paper and now, though electronic, it continues to be burdened by a myriad of duplicate procedures and reconciliations among thousands of its members. In a few months DTCC will quietly begin the largest live implementation of blockchain, the distributed database technology made popular by the bitcoin cryptocurrency. Records for about 50,000 accounts in DTCC’sTrade Information Warehouse, where information on $10 trillion worth of credit derivatives is stored, will move to a customized digital ledger called AxCore. Soon all will have access to a single real-time account of trades, eliminating layers of databases.
Walmart is using blockchain technology to track shipments from its suppliers and reduce the risks of food spoilage and contamination. It has already filed 50blockchain-related patents. Hard drive maker Seagate is using the tech to catch and prevent counterfeiters and Metlife can now pay claims instantly to its expectant mothers who test positive for gestational diabetes.
Rather than be disrupted by ICO-funded upstarts, global corporations are embracing the technology underlying cryptocurrencies like bitcoin because they want to speedup business processes, increase transparency and potentially save billions of dollars.
According to International Data Corp, total corporate and government spending on blockchain should hit $2.9 billion in 2019, an increase of 89% over the previous year, and reach $12.4 billion by 2022. When PwC surveyed 600 execs last year, 84%said their companies are involved with blockchain.