Blockchain, which is best explained as a decentralized ledger, is best known for being the technology behind cryptocurrencies like bitcoin. But its potential use-cases do not just reside in the world for digital currencies or financial services, according to a wide-ranging report by Credit Suisse, the Switzerland-based bank.
According to the bank, a survey conducted by the World Economic Forum found 58% of executives anticipate 10% of global GDP to “be stored on the blockchain before 2025.”
That’s the year Credit Suisse expects the technology to reach full maturity. At the moment, the technology is in the middle of the prototype and pilot stage.
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Why do I need to know about Blockchain?
There are three reasons why you need to know about Blockchain:
- Blockchain technology doesn’t have to exist publicly. It can also exist privately – where nodes are simply points in a private network and the Blockchain acts similarly to a distributed ledger. Financial institutions specifically are under tremendous pressure to demonstrate regulatory compliance and many are now moving ahead with Blockchain implementations. Secure solutions like Blockchain can be a crucial building block to reduce compliance costs.
- Block-chain technology is broader than finance. It can be applied to any multi-step transaction where traceability and visibility is required. Supply chain is a notable use case where Blockchain can be leveraged to manage and sign contracts and audit product provenance. It could also be leveraged for votation platforms, titles and deed management – amongst myriad other uses. As the digital and physical worlds converge, the practical applications of Blockchain will only grow.
- The exponential and disruptive growth of Blockchain will come from the convergence of public and private Blockchains to an ecosystem where firms, customers and suppliers can collaborate in a secure, auditable and virtual way.