Ripple Insights on Why Blockchain Needs to be More Than Just a Technology with ‘Potential’…
- Blockchain-based governance systems are already being used for purposes such as supply chain management, intl. payments, cross-border trade etc.
- However, the use of this technology is not just limited to a few specialized sectors, rather it can be used to build bridges between various industries in a highly transparent, streamlined manner.
Many of our readers may have heard people saying that the blockchain industry has a lot of potential and that moving forward, peer-to-peer payment systems and smart contract solutions based on this technology could help rid the world of large banking conglomerates and other centralized institutions.
However, as things stand, we only have a handful of such projects in existence today — despite the crypto ecosystem having become relatively quite mature over the course of the past decade or so.
In this article, we will look at some of the sectors in which blockchain is currently thriving and how the future of this technology will play out in the coming years.
A Closer Look
One of the areas where blockchain technology has been able to find immediate use is within the world of commercial finance — since it allows native transactions to become faster and more frictionless due to its novel operational framework.
Not only that, blockchain systems also allow for greater transparency and help in the creation of “instant trust” between entities that might be looking to do business with one another.
In this regard, some of the best practical applications of blockchain include:
- International Payments: In the past, people have had to wait for days as well as pay huge processing fees to send money to their near and dear ones. However, today we have firms like Ripple that allow people to facilitate near-instant, cross-border payments at minimal fee rates.
- Supply Chain Systems: Big name players such as IBM have devised inventory management systems that are being used by multinationals such as Walmart, Maersk etc. They allow for the digitization of supply chain events in a streamlined manner — thereby allowing the above mentioned firms to track their data/items in real time.
- Trade: Over the last year or so, a number of blockchain based ventures have popped up that allow different European banks to reduce their native trade risks as well as increase their transparency levels.
So What is a Network of Networks Exactly?
When an ecosystem is created on the values of trust and transparency, newer participants naturally start to join the network. However, when looking at blockchain from the POV of a “network of networks”, we can see that the technology will become more attractive to the masses when such a model is brought to the forefront.
For example, by bringing together a number of related blockchain networks, the system as a whole will be able to “deliver greater benefits than the sum of its individual parts”. This will weed out related to red-tapism, corruption from processes that are otherwise quite slow and bureaucratic in nature.
- By using blockchain based administration systems, suppliers can be paid faster — which in turn allows them to reinvest their money in new raw materials.
- Importers can also easily keep track of their stock inventory — while all of the other involved parties (that have the required clearance) can also view the associated authentication tx’s.
In closing out this piece, it should be pointed out that the true utility of a “network of networks” is not limited to just payments, trade or supply chains.
Many experts believe that as we move into the future, blockchain will help connect various industries and allow for the creation of a new ecosystem that is autonomous and free of all the baggage that usually comes attached with traditional business models.