Blockchain is one of the most exciting new technologies to emerge out of the crypto revolution. Originally used for transactions for Bitcoin, it’s now become a general data transport system for all kinds of data. The financial impacts of Blockchain are potentially huge. Here’s what it can do across different disciplines around the world.
Positive Financial Impacts of Blockchain
An analysis by the PwC has shown that Blockchain technology carries the potential to boost the world’s GDP by $1.76 trillion over the next decade. The report took a look at the potential that blockchain has to transform how different businesses and government operations run.
Possible Negative Financial Impacts of Blockchain
The possible negative financial effects of Blockchain mostly lie in how they will disrupt traditional finance. More to the point, it can disrupt banking and the role of current financial service providers.
It may result in the dissolution of many of banking’s and the financial sector’s biggest names. However, the economic fallout will be small compared to the huge benefit that the financial sector as a whole can hope to gain.
Everything from fundraising, securities, loans and credit as well as trade and finance can be upended. This will also be beneficial for individual customers since Customer KYC and fraud prevention can be ramped up to avoid financial losses.
Key Application Areas for Blockchain Technology
The 4 key application areas of Blockchain as they stand include:
Tracking and Tracing
Tracking and tracing products and services is a major application of Blockchain. It’s one application which can have one of the largest possible financial impacts of blockchain. This has emerged as a huge priority for many companies’ supply chains during the global COVID-19 pandemic. Parcels, packages, and even letters need to be tracked and traced more transparently. Blockchain can help make that a reality.
This includes goods sent from heavy industries like mining through to fashion labels and electronics. This can contribute to the rise of Blockchain technology use within the private sector.
Payments and Financial Services
The first ever use of Blockchain will persist throughout its lifetime since it carries so many advantages. Payments and financial services can make great use of Blockchain’s speed and authentication technology. This can also support financial inclusion throughout the world since remittance payments and transfers can happen throughout the world.
Identity management has become a hot button issue today. With login credentials, credit card info, and health records being compromised every day, Blockchain provides a solution. This includes professional credentials and certificates which can help curb both fraud and identity theft.
A major application of blockchain is in smart contracts and dispute management. This also includes customer engagement like loyalty programs. This extends blockchain’s uses into a wider range of both private and public industry sectors.
Blockchain and its financial effects on the world are bound to be massive. It may just end up transforming how we live life as we know it.
ChainMyne is a registered Money Services Business under FINTRAC guidelines. We will help you to achieve financial independence through blockchain technology so that you can build your wealth in a secure way.