Blockchain: Cutting through the Red Tape

CIOReviewIndia Team | Friday, 03 July 2020, 02:38 IST

Industry sectors that have hitherto been insulated from the benefits of blockchain technology have started realizing the technology’s potential. Blockchain technology is showing promise of revolutionizing operations and processes in many industries as well as government agencies in case it is adopted. It can also galvanize people to acquire new skills, and traditional businesses will be more upbeat to overhaul their processes to derive maximum benefits from using this revolutionary technology. It has immense value for any segment of industry that requires its records of transactions to be kept secure, and that activity can be carried out in a traceable manner. Gartner has touted blockchain as one of the top ten strategic technologies for 2020. Although public blockchains are presently too immature for enterprise deployment, the technology is expected to overcome these issues by 2023.

After its humble bitcoin beginnings, blockchain technology has been almost entirely reinvented. It has been evolving into a technology with the potential to address numerous business concerns. As per a Deloitte’s report, blockchain is one of the foundational technologies of digital development. Deloitte found blockchain to be a critical technology priority for more than half of its 2019 Global Blockchain Survey participants. In the future, blockchain is going to be intertwined with other emerging and nascent technologies like AI and IoT. The invincible combination will bring a host of future possibilities with it. “By making the results fully transparent and publicly accessible, distributed database technology could bring full transparency to elections or any other kind of poll taking. Ethereum-based smart contracts help to automate the process,” says Krishnakumar Madhavan, Head IT & Innovation, KLA.

Several industries are going to adopt blockchain technology owing to its potential benefits like enablement of trust, new level of transparency, reduced transactional costs, and streamlining of cash flow. Although many industries still have to size up the blockchain technology to see how and where it fits and whether it will add business value, one of the foremost sectors that is on the verge of full scale blockchain adoption is banking and finance. As opposed to other sectors that will have to transform their operations in a big way in order to adopt and implement blockchain technology, banking and finance would need minimal overhaul of their operational procedures to get onboard with the technology. Financial institutions are already deliberating over the viability for its usage in their daily operations.

Experts believe that blockchain technology will cut through the red tape in banking and other sectors, enabling faster transactions. And all of this to be achieved at a reduced cost and increased transparency will make it hard for the industry to resist its adoption.   

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