Blockchain Disruption: 58 Industries Set to Change Forever Part 2
What blockchain does so well is it brings more transparency regarding verifying and recording transactions; other people can easily view this data. This decentralized system requires little to no supervision, helping to prevent fraud. Below is the second part discussing how blockchain will help harness the power of these industries.
Cryptocurrency Exchanges
One-way blockchain technology disrupts the finance sector is in the cryptocurrency exchange space. Blockchain lowers the risk of cyberattacks by completely removing the need for a person to act as the middleman, reducing the chances of hacks, fraud, or even human error.
Many people don’t realize that some of the most well-known and successful blockchain companies are incredibly centralized from an operations standpoint. Many new cryptocurrencies are doing “dogfooding,” they buy and sell crypto tokens but run their entire exchange on the blockchain.
Enigma, the developer for Catalyst, states that they have MIT and Flybridge Capital as supporters. The project Catalyst works as an off-chain decentralized exchange and investment platform that doesn’t need third parties to act as a middleman.
Coinbase and Binance heavily operate from a centralized model. This approach could change as Binance launched Binance DEX in 2019 and acquired the peer-to-peer trading platform Paradox in 2018. Some other projects like Ethereum-based 0x work off a decentralized exchange; as more tokens begin to use this model, the crypto exchange world will change.
Handling of Estates
In the future, wills and inheritances will all be automatically done, thanks to blockchain technology. This change involves intelligent contracts, which can help verify who has passed, assist with dispersing assets from the will, and how a choice is legally interrupted based on the deceased person’s intentions.
The benefit here is that no one can play favorites, change the phrasing of the will, or try and cheat others out of more money. Blockchain technology will make it easier to make sure all documents are actual and not falsified, freeing the courts from dealing with ongoing family disputes over inheritance.
Some companies are already working on making this technology a common practice. A Japanese company, Zweispace, has made a Smarter Contract Platform that automatically disperses inheritance trusts to those listed on the will once the person’s death is confirmed. No more never-ending court battles or bitter family fits over who should have got what, making everything easy.
Accounting
Just as the banks adapt to the changes, blockchain technology brings accountants everywhere. In the past, accountants have worked using spreadsheets for tax forms and balance sheets for everything that involved finances.
Blockchain technology could make that history. Blockchain would make things much faster with its ability to keep track of all financial records and process payments quickly. The ability for a company to seamlessly track all its data using the blockchain could ensure that human error doesn’t happen and there’s no chance for fraud.
Loans and Credit
Historically, banks and lenders underwrite loads based on a credit reporting system. The bank or lending agency would evaluate how much of a risk you were and if they could get their investment back. For many decades now, to get a loan, the only place was to head to the bank.
These old systems have always been somewhat hostile if you were an ordinary person looking to acquire a loan. In the US, the Federal Trade Commission estimates that 1 in 5 (20%) Americans has what is known as a “potentially material error” in their credit score, which negatively impacts their chances of securing a loan.
What blockchain technology does is that it offers much cheaper, efficient, and secure ways of securing loans. Using cryptographically (this device scrambles the message allowing only the sender and recipient to read it) is used to secure the loan using a decentralized database of historical payments, giving customers across the globe the ability to get the loan they need.
Insurance
The insurance industry will be toppled and turned over by blockchain technology which will revolutionize how firms operate and work. Blockchain technology will lower costs, increase claims processing times, and give customers a better experience.
Insurance companies that use blockchain technology can develop international relations or deals. What makes this possible is how secure and safe blockchain record-keeping is, with no chances of fraud or tampering.
Hungry for more? Check back on Monday for my next blog on the top cybersecurity mistakes most companies make and how to avoid them.
Every week, I’ll have several new blogs on my website where I dive into the world of blockchain tech and topics on cybersecurity — simplifying the world of tech.
#simplifyingtheworldoftech #worldoftech #tech #remotework #blockchaintechnology #cryptocurrency
