Blockchain in
the real world

  
Blockchain

5th July | 3 mins

Speed Read

  • Blockchain is removing road blocks to allow further development of internet technologies
  • Highest level of security and transparency thanks to its distributed digital ledger
  • Instantaneous communication improving efficiencies and costs in all industries
  • At the beginning of its development and known applications

The computer made the internet possible. The internet has made blockchain possible. And blockchain is making much more possible.

Just the beginning

Blockchain is in the same development phase as the internet back in 2001. Although the technology behind it can be complex, the challenge for entrepreneurs and investors is not to understand how it works, but to grasp its uses and its potential to change the world.

Blockchain is helping to ‘shrink the world’ by optimising the transmission of information and opening up the internet to a realm of industries that couldn’t use it extensively before. It effectively removes the various ‘roadblocks’ that were still in place for many industries to be transformed by the capability of the internet. Blockchain adds another ‘layer’ to the internet that provides:

  • Transparency
  • Security
  • Efficiency

How is this developing across industries?

Financial Services

Remittance money transfer is a huge market. On a global level remittance income is now one of the largest transfer of funds per year at $550 billion, that’s three times more than foreign aid and bigger than foreign direct investment. Of this $550 billion, more than 90% went from developed to developing countries, where a small change in efficiency and cost could vastly impact local economies.

For individuals, a UK-based worker looking to send money to family in a different country currently pays a 7% fee on every transfer and waits days for this money to pass through the inefficient process of clearing and settlements between international banks.

Distributed ledger technology is a secure network that directly connects banks across the world without the need for intermediaries, enabling all transactions to be transparent and approved quickly to produce near instant international transactions.

Already working across 48 currencies, the technology was introduced by IBM with its creation of The World Wire, putting them firmly at the forefront of change.

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Retail

Transparency and traceability in the retail industry allows companies and consumers to understand and trust the origin of their product. US retail giant Walmart found issues with traceability in the food industry when presented with the issue of contaminated foods. Previous processes took many individuals seven days to work back through their supply chain to find the source of a product. Working with IBM they have implemented solutions that allow them to trace a product’s exact source in under 10 seconds.

The impacts this can have on saving lives in potential future food contamination outbreaks provides product safety and trust between consumer and company, while for the business it reduces everyday costs, boosting the bottom line.

These are just two examples of the application of blockchain to existing business needs. While its full transformative power is almost unimaginable, you can benefit from it financially right now.

Currently worth almost $2.2 billion, the global blockchain technology market is set to increase sixfold to $15.9 billion by 2023(1), while the overall estimated economic impact of blockchain in IoT applications is set to hit $11.1 trillion by 2025(2).

Blockchain is the future, but it is already here today providing a diverse array of multi-industry opportunities for forward-thinking thematic investors.


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Sources:
1 - Statista
2 - McKinsey Global Institute


Any references to specific companies should not be construed as a recommendation to buy or sell any securities in said companies, nor assumed to be profitable.

Blockchain in 2021

Learn more about the Blockchain Revolution in our latest two pager! 

Download it here.

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