Blockchain : An Answer for Everything

Big Data Analytics for C-Levels
March 29, 2018
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Blockchain, a distributed database that maintains a continuously growing list of ordered records, appeared for the first time on the release of whitepaper “Bitcoin: A Peer to Peer Electronic Cash System” in 2008. It is now known as one of today’s biggest ground-breaking technologies with potential to impact every industry from financial to manufacturing to educational institutions.

By its initial presence sticked to Bitcoin, there are many who believe that Bitcoin and blockchain are one and the same, while actually they are not. Around 2014, those who started to realize that blockchain could be used for more than cryptocurrency started to invest in and explore how blockchain could alter many different kinds of operations. Entrepreneurs understoo the power of blockchain, they started to believe that there was a stream of investment and discovery to see how blockchain could impact supply chains, healthcare, insurance, transportation, voting, contract management and more.

Since the previous 11 years, blockchain has been progressing to evolve by following innovations:

  1. Pioneering the innovative digital currency named as Bitcoin. The marketcap of Bitcoin now covers more than $151 billion dollars and is used by people for payments in a growing remittance markets.
  2. Innovating blockchain which is the underlying technology that operated bitcoin is to be separated from the currency and used for all kinds of other interorganizational cooperation.
  3. Innovating smart contracts embodied in a second-generation blockchain system named as Ethereum allowing financial instruments to be utilized rather than only the cash-like tokens of the Bitcoin. The marketcap reaches $62 billion dollars.
  4. The fourth innovation is Proof of Stake which is the improvement of the current Proof of Work operating vast data centers to provide this security, in exchange for cryptocurrency payments done by Miners. This recent proof is ruling out with complex financial instruments with a similar or even higher-degree of security level.
  5. The last one is Blockchain Scaling. It accelerates the process, without sacrificing security, by figuring out how many computers are necessary to validate each transaction and dividing up the work efficiently. A scaled blockchain is expected to be fast enough to power the internet of things and go head-to-head with the major payment middlemen (VISA and SWIFT) of the banking world.

The innovations are enabling other sectors, beyond cryptocurrency, to utilize this transparent, traceable and secure technology for a more wide-range business. Starting supply chain management, quality assurance, accounting, smart contracts, voting, stock exchange energy supply and peer-to-peer global transactions. And it doesn’t stop at private companies, but also in authoritized powerful parties called as governments.

Take a look at Dubai’s blockchain strategy which is about to issue all government documents on blockchain by 2020. Further, Hongkong had approached its IT departements and regulatory leadership to build an experiment on a blockchain-sandbox around specific pain points afflicting Hong Kong: mortgage applications, trade finance, and digital identity. Singapore, similarly, created a blockchain-sandbox with fintech startup the Monetary Authority of Singapore to test financial instruments and the tokenization of fiat currency. The trends and initiatives from such countries also brought others to start exploring use cases for blockchains and distributed ledgers and regulatory environments supportive of blockchain companies like United States, United Arab Emirates government, United Nations Development Programme and also UNICEF in the form of hackathons.

What about Indonesia? Despite the banning of bitcoin use, the government of Indonesia welcomes the adaptation of blockchain for a more efficient and reliable frameworks for Indonesia’s technology. Banks in Indonesia have shown their interests by starting to have talks on blockchains for their financial technology specifically to record contract requirements, trading documents, obtaining mortgage, validate identity and syndicated loans.

The ecosystem is also supported by Indonesian startups taking crucial roles to build a trust in blockchain by founding Asosiasi Blockchain Indonesia (Indonesian Blockchain Association) recently on 21 March 2018. There are 6 companies initiating this association with purposes to unite the blockchain players in Indonesia, support government in regulation making and help people to identify credible blockchain companies.

By the fast-paced developments of blockchain around the world, industries are now pushed to utilize blockchain as its core technology for a more secure and efficient to both clients and companies.

Here in Dattabot, we have all the experts of engineers and experienced business analyst to support you by unlocking the values of your data for your challenging business.

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