As per a recent report by Accenture, by the end of 2025, block chain will take over most of the business functions, in almost every industry, opening up new opportunities for business.
In this blog, we will tell you whose expenses this technology will cut down, and whose profits are going to be proliferated.
The world has been a little too copious in talking about Block chain, the technology behind the success of bitcoin, and its manifested potential to transform the way world operates. Deemed as a ground-breaker, Block chain has been able to attract a lot of attention already, thanks to bitcoin.
In addition, it is rumoured to be even bigger than the internet. Many people confuse block chain as a mere synonym to cryptocurrency. Potentially, Block chain has many more use-cases across industries which should be explored further.
What is Block chain
Block chain is a decentralised and unfalsifiable registry of information, which allows for distributing, controlling, and storing transactions in secured and transparent system, sans any intermediaries.
Mentioned below are few industries where block chain can work wonders:
A classic example of block chain application is the securities market. An organisation sells its shares, but instead of using intermediaries such as a stock exchange or national depositories, it sells them directly. This helps minimise the transaction costs, and the transfer of the shares to the new owner is done in a matter of seconds.
As of today, the barriers to entry into the investment business is $200–300 million, which is required for reporting to the regulators and maintaining the infrastructure for such reports. By cutting down these costs, block chain lowers the barriers to entry and stimulates the emergence of new funds.
Blockchain can be deemed as the perfect technology for copyright protection: every information about the product is registered (when, where, and who has created it, who they transferred it to, and how they used it), this useful information will never be expunged out of the system, and can be used to settle down disputes whenever you want.
The distributed register helps inventors, entrepreneurs and manufacturers secure the authorship, history of origin, or right of ownership. The subject matter of protection may be an expensive watch, 3D printing technologies, literary creations, photographs… in fact, anything.
Ethereum blockchain technology uses the smart contracts, which helps in the automation of entire process of insuring. This simplifies the whole thing, making it easier to understand. From receiving the insurance payments to conclusion of the agreement. When an insurance event occurs, this contract will work automatically, which implies that the policy holder is not required to get in touch with the insurance underwriters, doing away with the need to fill numerous forms.
Due to cutting down on the operational costs, the transaction costs are bound to be reduced as well. The significance of this can be realized in case of low marginality or mass payments. To measure the popularity of blockchain, one of the world’s largest insurance companies “Allianz” as already began the transfer of fraction of its contracts to blockchain, a major part of those will be the event insurances.
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