“Blockchain Technology is the new black” said Capital markets expert Toledano “You’d be surprised at how interested businesses are taking on this ground-breaking system. Forget mobile phones – they were the first stage of the digital revolution. The second stage involves managing and transferring data in the digital world. That’s where Blockchain comes into play. It’s about to take the world by storm. In fact, it is the new internet” he added.
Haim Toledano revealed that there are two types of blockchains:
- “Firstly, there is an open and public blockchain which enables everyone to be part of the network and obtain a copy of the data on the database.”
- “Secondly, we have a private blockchain that is more suitable for banks for example, who only want to disclose data among themselves”
A prominent and most popular form of an open blockchain is Bitcoin, the virtual currency whereby transaction data on the blocks are visible and available to everyone. Nevertheless, there is some privacy involved. The user who made the Bitcoin transaction remains private and is instead represented through a serial code.
What Other Blockchain Systems are There?
Other than Bitcoin there are indeed a few additional blockchain systems including Ethereum. Deloitte has global centers in New York, Shanghai and Dublin that function with blockchain and their highest number of applications is for Ethereum. This digital coin which is considered Bitcoin’s biggest competitor launched in 2015 and is valued at approximately 20 billion dollars. “Ethereum is a rather user-friendly system but it can still be complex. Many developers prefer this technology to Bitcoin which has a difficult operating system” as stated by Haim Toledano. Users have the option to draft smart contracts which involves programing the rules for transferring funds into the coin. These rules include setting the money to be transferred from one account to another, only when the product reaches its destination, for instance.
Haim Toledano mentioned that blockchain technology can’t simply be deployed by any business. “There are different types of blockchain for various functionalities. That’s why it’s important that businesses define and identity what operations they’ll be using it for and why.” Blockchain is an extremely beneficial technology but there are some cases where it isn’t the solution. Accurately define your user goals before diving into this complex technology.
When Should We Expect a Business Boom in Blockchain?
Haim Toledano mentioned that the blockchain hype seems to have died down as of late but it shouldn’t be a cause for concern: “The excitement regarding blockchain has fizzled out but that doesn’t mean its disappearing. We’re all working on it and bringing it to life. Major companies are building partnerships, to continue building this “new world”. Everyone should expect some noise, soon”.
Blockchain took a while to gain its popularity among businesses. The potential of this technology wasn’t recognized until the rise of Bitcoin. They identified new means of saving data and were highly attracted to the concept of “smart contracts”. Despite the growth of interest by several companies, “blockchain at this very moment is not fully operational yet. It’s still in its experimental stage”.
There has been an evident struggle to get the blockchain ball rolling. Discussions are being made, plans are being set and major business owners are aiming to give the go-ahead. Nevertheless, it’s as though everyone is waiting for someone to make the first revolutionary move – like something is holding them back. “There are in fact a few barriers preventing the business boom in blockchain”, says Haim Toledano “Privacy is an immediate concern for financial firms, in particular. Blockchain entails a close cooperation among companies. So when you sync your data with another firm, you’re automatically exposing them to your information. Although it benefits in helping organizations operate together efficiently, it can also expose your business’ secrets. Nevertheless, a solution for this is being worked upon.” There are several industries that have joined forces to put blockchain to the test and see whether it can make workflows more efficient. These include the world’s largest banks such as the Bank of America, Citigroup and Morgan Stanley who have joined R3 – a group developing a blockchain technology called Corda and iinsurance companies which have joined the B3i blockchain initiative.
Haim Toledano believes “the future of blockchain is bright”. Several industries in the business world are taking this technology on board and it’s expected to tap into more industries in the future. Nevertheless, as stated by Haim Toledano, “the blockchain system isn’t as easy as 1,2,3. It hasn’t got the same functionality as a mobile phone. It cannot be used by just anyone. Blockchain is complex, it’s compound and it’s certainly futuristic. It can take while to build and there aren’t that many people in this world who are skilled in doing so. But I don’t want to dampen the phenomenon. This doesn’t mean blockchain isn’t going to thrive – in fact, it’s going to be the number one solution for companies. As soon as one firm adopts this system, expect many to follow behind. It’s going to be revolutionary, game-changing and the beginning of something new.”
If blockchain is to flourish the way Bitcoin did, then the technology has a very exciting future ahead of it. The success of the digital currency was certainly not anticipated. Blockchain has the potential to change how businesses function in terms of speed, efficiency, cost and transparency. There’s never been a more exciting prospect since the launch of the internet.
Haim Toledano is an online capital market trading expert