Blockchain is having a huge impact in the global financial market and is transforming the financial services of many business and industries.
In short, it changes the financial aspect of business sectors, providing a clear record book that can't be altered between two individuals.
Obviously, billions of transactions are made daily, and trillions of dollars are moved around the outdated global financial system every day — and this process still relies on paper processes. This has made it easier for fraud and theft to grow in business financial sectors. Also, 45% of financial intermediaries, such as stock exchange and money transfer services, suffer from economic crime every year.
But with blockchain in place, billions of transactions are protected from several hurdles that might occur during a transaction. This provides reliability, transparency, traceability, faster transactions, and improved data quality.
Below are ways that blockchain will transform business sectors, making room for more data.
Supply chains are fundamental series of transactions that enable products to move from a production point to their final deployment. Most of the things we buy aren’t made by a single producer but by a chain of suppliers who sell to an organization or company that processes and distributes the final product.
However, existing supply chains are complicated and slow in product distribution. Also, many parties across the world don't trust each other in terms of transaction supply. But the interesting fact is that blockchain has changed the process of supply chains in business sectors — ensuring optimum security, providing transparent monitoring of transaction, reducing time delays, and providing an assurance of product authenticity.
One of the biggest challenges in the transportation industry is the protection of assets and cargo.
For example, a lot of car shipping carriers need to give their customers transparency in transactions and timely deliveries. This led to a collaboration between AOS and IBM to enhance the efficiency of the transportation industry, providing a new truck tracking solution that uses IoT and blockchain to manage effective transactions between carriers’ local authorities and clients.
Also, the implementation of this truck-tracking solution can help to monitor what's happening with the trucks. Once the truck leaves its distribution point, an automatic message is sent to the customer telling them about the load, weight, and time of arrival.
All of this is possible with the use of a transmittable sensor powered with IoT and blockchain, which tracks all the exchanges and transaction made by each truck from the distribution point to the final customer.
With the use of blockchain and IoT solution in the transportation sector, there will be an increase in trust and transparency between shippers and their customers — creating a more friendly business relationship.
The use of blockchain in cybersecurity can't be ignored. According to Cert Org., cybersecurity is the process of preventing and detecting unauthorized use of your computer. It involves safeguarding against intruders who want to use your computer resources for malicious intents or for their own gain.
Meanwhile, cybersecurity can still be tampered with because it still involves the need of human intermediaries. Conversely, blockchain reduces cybersecurity risks by removing the need for human intermediaries, which in turn reduces the threat of hacking or human errors.
In fact, a lot of business sectors experience problems exchanging information when it comes to data science — especially where some of their users can’t be trusted. Blockchain will ensure data sincerity by using different consensus and messaging techniques to prevent valid data from being deleted or modified secretly.
Networking and IoT
Blockchain will have a positive effect on networking and IoT, serving as a central control system to identify one another.
Lately, IBM and Samsung have been working together on a notion known as ADEPT (autonomous decentralized peer-to-peer network) that uses blockchain technology to form the backbone of the system.
With ADEPT in place, a blockchain will serve as a public ledger for many devices. Thus, a central hub will no longer be effective and blockchain will serve as the bridge between many devices at a low cost.
Without the use of a central control system, the devices would be able to connect with one another autonomously in other to manage software updates. This blockchain application will be of a great use for companies dealing with several IoT devices.
In this automation age of constantly growing technology, the use of blockchain will fundamentally transform the financial services industry by reducing the cost and complexity of financial transaction in different business sectors, which will, in turn, improve business efficiency and bring transparency to how we manage business data.