That it is not just an economic evolution it is also an innovation in computer science. Blockchain gives us the technological capability of creating a record of the human exchange of currency of all kinds of digital and physical assets even of our own personal attributes in a totally new way. They become a technological institution that has a lot of the benefits of the traditional institutions were used to using in society but it does this in a decentralized way it does this by converting a lot of our uncertainties into certainties. In other words, human beings have found a way to reduce uncertainty about one another and exchange value.
A surge in new projects, organizations, and platforms oriented toward the use of blockchain technology began in 2013.
This record ledger shows every transaction that has ever happened in chronological order and we each hold an exact copy of it because of the way the pages are bound together trying to go back and change past trades would be practically impossible and because we each hold a copy of it we would know if something went wrong. This shared record book is distributed immutable ledger a record of transactions. Distributed means that it is shared and stored in multiple locations removing a single point of failure and providing visibility across multiple participants. Immutable means that it is near impossible to go back and change the past records once they have been agreed by the participants and secured using cryptography. A type of shared database.
Watching technology not only puts more power back in the hands of individuals that by design that provides an unprecedented opportunity for transparency. However, transparency is being recognized as human rights.
In 2018, blockchain-related venture capital funding soared to $3 billion, up from nearly $1 billion in 2017. Nevertheless, the much-publicized turbulence in bitcoin and other cryptocurrencies led to a softening of some blockchain investment classes, as evidenced by the decrease in market value in pure-play blockchain companies, private investments, and newly founded blockchain ventures. Blockchain has the ability to transpose intermediate such as brokers, banks, notaries… Those business models are predicated largely on providing independent third-party verification. By enabling greater transparency across the network, blockchain could also disintermediate market arbitragers, price-reporting agencies, benchmark providers, and others whose businesses create value by capitalizing on information asymmetry.
The value that blockchain use cases can deliver:
New Business Models
Blockchain just going to be a player behind it so it is actually the user interface and user experience will be the same, exactly the same as before, but the company will gain more trust and transparency. Do you remember 10 years ago when Cloud was introduced? The fact that everybody was crazy, this is a technology that can change the world, but think is we do not need to understand the technical part we just want to use services easily.
Operational Efficiency
Removing unnecessary intercessors will help organizations to improve productivity and performance, by generated in significant time and cost-saving. According to the Economist, Santander Bank, for example, believes that financial institutions could generate $20 billion in savings by applying blockchain to streamline and automate many back-office activities.
Risk Mitigation
Tracking and authentication across supply and distribution chain, issues from fraudulent parts, thus mitigating financial and reputational damage.
Social Impact
Fraud and risk reduction, reducing administrative costs, accountability and transparency, faster border transfers, improved accessibility With blockchain, these problems can be solved.
Bibliography:
Stanford Business, Center for Social Innovation. Blockchain for social impact moving beyond the hype, https://www.bcg.com/en-ch/publications/2019/capturing-blockchain-value.aspx
