How Blockchain Makes a Positive Impact on our World

Cryptocurrencies have grabbed most of the headlines of late, over fears of a material shift in the regulatory landscape. The news continues to overshadow the blockchain technology that is on offer, something that speculative investors have had very little interest in, despite some of the larger projects making inroads into the archaic tech world that consumers and businesses have had to endure for years.

While consumers have yet to fully benefit from blockchain technology being introduced into the real world, it’s only a matter of time before institutions face pressure to pass on the benefits of the technology to the consumer and businesses around the world.

What uses of blockchain tech are having an impact in the world today?

Banking, fund raising, trade and data protection are immediate beneficiaries of blockchain tech that spring to mind.

While for developed markets, there are clear advantages across multiple sectors, emerging economies and the 3rd world are likely to experience more immediate benefits, similar to the cell phone industry that provided poor countries with communication devices.

When looking at the banking sector, the use of platforms such as Ripple to facilitate cost effective cross-border transfers may one day save consumers and businesses on fees, but until then, one clear benefit is to the unbanked, with an estimated 2bn of the world’s population not having access to a bank account.

With financial inclusion considered key to reducing poverty, not to mention provide greater opportunities for business growth in the 3rd world, the availability of Bitcoin, Bitcoin Cash and other altcoins, as well as the use of blockchain technology for global remittances have improved access to cash. Even taking away the concept of Bitcoin and other ‘true’ cryptocurrencies, Telegram’s initial coin offering earlier in the year is an example of how blockchain technology is forcing financial institutions to revisit fee structures and technology in order to keep up.

There is a clear demand for a material change in the way that funds are transferred around the world, not to mention availing a banking alternative to the unbanked.

From a business perspective, the evolution of the initial coin offering market has been an impressive one. With entrepreneurs now having access to a fundraising platform that has cut out the venture capitalists and banks of this world, projects, and start-ups are able launch without material deviation from plan. By removing the outside influences that left many start-ups on the back foot from the get go, the opportunity for success has also improved. The very fact that governments are mindful of the need to support the initial coin offering market, whilst looking to remove the fraudulent activity within, is a testament to how significant the market has become.

Adding to the business side, is the use of blockchain technology for smart contracts and its use in supply chain and trade finance transactions, all of which are already actively being used today.

All of the above comes with the benefit of one of the most relevant attributes of blockchain technology, the protection of personal information.

Only on Monday, Facebook Inc. saw $37bn wiped off its market cap, in response to questions being raised by both the UK and U.S government on reports that Cambridge Analytica acquired personal information from Facebook Inc. to assist Donald Trump in winning the U.S election.

Governments are also looking to adopt blockchain tech in order to store information, with the hacking of blockchain tech far more difficult, if at all possible, than current data storage centres.

Governments, central banks, financial institutions, and corporations are in a big hurry to take advantage of blockchain tech and ultimately come out of the dark ages and that can only be a good thing.

This article was written by Bob Mason, FXEmpire Analyst
Opinions expressed by techsutram contributors are their own.