In the financial services sector, Blockchain technology has already been implemented in many innovative ways. Blockchain technology simplifies and streamlines the entire process associated with asset management and payments by providing an automated trade lifecycle where all participants would have access to the exact same data about a transaction. This removes the need for brokers or intermediaries and ensures transparency and effective management of transactional data.
Blockchain
Blockchain is a shared, secure, immutable ledger of transactions distributed among a network of computers, rather than resting with a single provider. It facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible or intangible.
Why do we need blockchain?
Business transactions take place every second of every day orders, payments, account tracking and much more. Often, each participant has his or her own ledger and, thus, a version of the truth that may differ from other participants.
These multiple ledgers can be a recipe for error, fraud and inefficiency. But because members on a blockchain share a common view of the truth, it’s now possible to see all details of a transaction end-to-end, reducing those vulnerabilities.
Ordinary transactions are complex
- • Each participant has his own, separate ledger increasing the possibility of human error or fraud
- • Reliance on intermediaries for validation creates inefficiencies
- • Can become a paper-laden process, resulting in frequent delays and potential losses for all stakeholders
Blockchain reduces the complexity
- • Single, shared, tamper-evident ledger once recorded, transactions cannot be altered
- • All parties must give consensus before a new transaction is added to the network
- • Eliminates or reduces paper processes, speeding up transaction times and increasing efficiencies
Blockchain can help enterprises across many industries:
Blockchain can play a key role in the healthcare sector by increasing the privacy, security and interoperability of the healthcare data. It holds the potential to address many interoperability challenges in the sector and enable secure sharing of healthcare data among the various entities and people involved in the process. It eliminates the interference of a third-party and also avoids the overhead costs. With Blockchains, the healthcare records can be stored in distributed data bases by encrypting it and implementing digital signatures to ensure privacy and authenticity.
Blockchain technology holds the power to transform Government’s operations and services. It can play a key role in improving the data transactional challenges in the Government sector, which works in siloes currently. The proper linking and sharing of data with Blockchain enable better management of data between multiple departments. It improves the transparency and provides a better way to monitor and audit the transactions.
There is a huge opportunity for Blockchain technology to be applied in the retail sector . This includes everything from ensuring the authenticity of high value goods, preventing, fraudulent transactions, locating stolen items, enabling virtual warranties, managing loyalty points and streamlining supply chain operations.
The application of Blockchain can radically change the travel and hospitality industry . It can be applied in money transactions, storing important documents like passports/ other identification cards, reservations and managing travel insurance, loyalty and rewards.