Blockchain is one buzzword that doesn’t seem to be going anywhere anytime soon. Aside from the profits its stimulated for many investors, blockchain creates an opportunity to not just impact Wall Street, but the world. You see, “Financial inclusion is considered to be the key to economic growth and poverty reduction, yet the jaw-dropping number of 2 billion unbanked people in emerging markets signal that not everything is right with our current financial system.” Blockchain technology offers a chance to change that.
In a recent blog post, I broke down blockchain, bitcoin and cryptocurrency, but for a quick summary, blockchain builds the infrastructure that allows digital, or in other words cryptocurrencies, possible due to its accountable cross-checking and the way the technology isn’t tied to one central area or use. While it’s easy to be skeptical given the media circus that surrounds this new burgeoning technology, a few cryptocurrency-centric finance startups have already proven to be effective at providing the unbanked population with more opportunities for financial inclusion.
Remember how I said the world though? This tech won’t just impact the finance industry. Government and security sector are also set to see positive change from blockchain. As described in Huffington Post, “If a government chooses to use blockchain for contract management, identity management, and its many other uses, it creates a publicly available record of those actions.” In theory, this appears to be such a simple and obvious solution to governmental corruption and disputed finances. The question becomes – do we need or want absolute transparency? Many officials seem to think we can do without, while the public and their constituents seem to disagree.
Real estate and insurance industries face changes as well. For real estate, it offers a faster transaction process, increased transparency, and secure online data storage at a cost-effective and trusted rate as this article described. For insurance, there’s more of a centralized focus on deescalating or eliminating cases of insurance fraud, which isn’t unlike the goals of many sectors’ applying blockchain to their routine. A black cloud of mistrust hangs over many professional fields. Blockchain’s transparency with its (mostly) pros poses a chance to change that perception.
Keep your eyes peeled for the newest implications of this rising tech. It’s not going anywhere anytime soon because even after roughly a year of popularity, it already ingratiated itself into our society and industries.