Cryptocurrencies, one of the most popular and fascinating trending topic in the finance industry right now. This digital, encrypted currency that is designed for the purchase of goods and services online let’s say Bitcoin, has shown an explosive growth over the past few years. But with the current situation witnessing the continuous fall in the price of Bitcoin, what other options do we have?
We know that Blockchain is a virtual, public ledger that records everything in a secure and transparent manner…the technology that is playing a major role in shaping the future. If the cryptocurrency section is separated from blockchain we are still left with some of the amazing options and few of them are explained below:
Recently, the ASX a.k.a. Australian Securities Exchange made the announcement to have a blockchain-based stock exchange. Eventually making ASX be the first mainstream Financial market to adopt the blockchain technology. This will allow cryptocurrencies like Bitcoin, Ethereum and many more to be traded in a decentralized manner. The stock markets around the globe are exploring and embracing this technology at the same time to maximize its efficiency and use its capability for market transactions.
“Blockchain offers huge potential for tracing the securities lending, repo and margin financing as well as monitoring the systemic risk.”
The blockchain technology can be the answer to the interoperability, trust and transparency issues in the fragmented market systems. This can make the stock exchanges more optimal through the automation and decentralization which can further reduce the extra costs in terms of commission.
Supply chain management might be a trending interest topic from a few years back. But in support of blockchain, the new possibilities are coming into existence. From conducting the payment and audits to the tracking of inventory and assets this technology enables greater supply chain efficiency than ever before.
For example, every time a product changes hands, the transaction will be documented and will create a permanent history of the stages that the product goes through like from the manufacturing to the sales. This may lead to a powerful universal supply-chain operating system that would reduce time delays and chances human error. Some already using this technology known as the ‘smart shippers’ are finding new ways to utilize these innovations to maximize the profit and strengthen internal relationships.
Blockchain is enabling an end-to-end traceability and transparency by introducing a common technological language to the quality assurance, providing the customers the details of the product/service. A use-case for this can be the Food Sector, where the tracking of origination, batch information, and several other details is necessary for quality assurance and safety.
We need Blockchain Technology as the most robust systems are beginning to face complication and competition with advancements in the IT industry. With a technology like blockchain that holds a permanent record of each and every transaction done is the perfect alternative to the traditional paper inspection and manual tracking systems. And this access to the information can be specified on a person-to-person or a business-to-business basis.
As discussed in the previous blog post about the Smart Contracts, blockchain eliminates the need of involving a third party. And the rules and regulations being in-built in smart contracts, each trade will be appropriately enforced. With Software Development Companies adopting the blockchain technology as it promises to address the problems including the data fragmentation, loss of data, reconciliation, ticket matching etc. Proving that this technology has the potential to disrupt the financial services by automating the post-trade events processing. But the main challenge would be seeing that how the government will decode the Blockchain Technology.