Why 2018 belongs to blockchain?
It’s a bloodbath out there, almost every industry is going through (or will, for sure) disruption like never before. Even Internet, one of the largest wonders in the modern age, would not be as big disruptor as Blockchain is about to become.
With claims this big, you might be in need of some proof. Or an example at least?
If you have a look at how Blockchain decreased the take-time of six days, 18 hours, 26 minutes in the process of tracking a package of mangoes from its farm of origin to 2.2 seconds at WalMart. Walmart is known to be the world leader in Food Traceability Systems, just imagine the extent to which it could transform the process at not-so-great-like-WalMart companies.
This is just a glimpse into what Blockchain is capable of. There’s more to come.
The Bitcoin-Ethereum Saga
The rate at which the prices of Bitcoin and Ether (Ethereum’s digital currency) soared in the last 5 years or so have managed to the $1000 mark in February 2017. As the great Bill Gates said,
“Bitcoin is a technological tour de force.”
As if the surge from single-digit value to a $1000 US price was easy for the financial pundits and the masses to process, it went on to go 13X in a matter of months. By the time 2017 ended, Bitcoin was priced at $13,000 US. Ether, though still on a trail behind BTC,
Bitcoin and Ethereum(or, Ether) have been compared by the people. The fact that these two are entities with different functions, is yet to be recognized by people. While Bitcoin is a virtual currency that promises transparency (since it is operated by a decentralized authority) and lower transaction fees than traditional online payment mechanisms, Ether is a currency basically for developers and users to get their way around the Ethereum blockchain network.
Ethereum too, just like Bitcoin, powered by Blockchain is an open-ended decentralized software platform. It does not function as a virtual currency, like Bitcoin. It enables the developers to write Smart Contracts where Ether acts as money, with no third party involved (unlike the conventional bank transactions) or any transaction fees being charged.
To explain to you what smart contracts are, let’s take an example. Imagine Bill has planted some solar panels in his garden, and Mr. Donald would like to use that electricity to power his lamps in the garden (Hint: Business Opportunity). Now, it won’t be cool if they exchanged few bucks every time Donald took carrots, would it? But they do need to settle it time to time.
If the duo had to automate(or any two parties in the world) the payment in a smooth and hassle-free manner, they could just write a smart contract on Ethereum (don’t need to be shocked, people do crazier things in the present financial world, it’s just a code and Donald here is a genius) that would check how much electricity Donald’s lamps have consumed, multiplies with the prices of electricity at the time and transfers the amount from Donald’s account to Bill’s. Seamless, more transparent than anything, no extra-fees charged and almost zero of confusion.
Now, replace Bill with a Hydroelectric power plant and Donald with a City. Or any two parties where a transaction of product/services is taking place in exchange for money. The world is simpler now, isn’t it?
Now that we’ve established how these two Blockchain products have taken on the financial world, let’s have a look at ICOs and the token-economy.
Forget the IPOs, token-economy are here along with the ICOs
Blockchain has triggered a brand new ecosystem for businesses to raise money.
Some of the most notable ICOs till date are:
- Ethereum ICO (Project: Smart Contracts, Funds Raised: $18 US million )
- The DAO ICO (Project: Decentralized VC, Funds Raised: $152 US million )
- Filecoin ICO (Project: Decentralized Cloud Storage, Funds Raised: $257 US million)
- Tezos ICO (Project: Self-Amending Distributed Ledger, Funds Raised: $232 US million )
When you talk about raising money, enter the VCs. As the promising startups started issuing cryptocurrency tokens to fund themselves with ICOs, VCs had to play the catch-up game in the token economy. VCs have started taking the ICO train now. A classic example of how Blockchain has made VCs indulge with ICOs would be Polychain Capital, the invest in cryptocurrencies and ICOs via a $250m hedge fund.
Blockchain has set out for the boardrooms.
Here’s a short and simplified way to go for Enterprise blockchain. Depending upon the requirements of the business and application, questions like “What kind of data is going to be on the ledger?”, “Who will have access to the data?” and “How the transactions, or say decisions will be verified?” needs to be answered.
Enterprise Blockchain has the capability increase efficiency and speed by eliminating intermediaries. The revamp attained in Food traceability by Walmart explained above would be a classic example of that. Depending on whether you’re a B2B provider or in the consumer market, and many other factors, there are options such as Corda, Hyperledger, EOS, Ethereum and some others to choose as the fabric for your Enterprise blockchain. While Corda is an open-source distributed ledger platform designed for financial and legal applications, with the smart contracts also containing a legal prose. Hyperledger is the right way to go for the B2B providers while Ethereum would be the right choice if you are in the consumer market.
Also, the choice and availability of developers for different fabrics is also an issue. Ethereum and Corda have the upper hand in this regard due to huge developer interests associated with them.
Good Governance by Blockchain!
Despite being termed as anti-establishment, Blockchain has managed to be backed by the government because of it’s potential to help them in good governance. Blockchain can provide governments the ability to counter serious problems such as mass-hacking campaigns, counterintelligence, and other attacks of hostile nature.
Abu Dhabi Stock exchange and the Russian government have already started developing voting systems powered by Blockchain. The power of blockchain can be subsequently leveraged to achieve a robust and secure corporate governance, decision making and consensus agreement.
The enormous developer interest too is making Blockchain witness an exponential rate of acceptance across the globe. With so many achievements already under its belt, Blockchain is sure going to be a formidable force in 2018.
OUR BLOCKCHAIN CAPABILITIES
Our blockchain capabilities include:
- Smart Contract Development
- Private Blockchain Development
- Loan Data Sharing
- Supply Chain Blockchain