The blockchain is the future. Whether you believe it or not, blockchain is here to stay and its impact on technology will be far-reaching.

Think back to the pre-internet days. If someone had told you that information would be available at the click of a button, you could shop online and video chat with friends, you probably would have scoffed in their face. Back then, this kind of thing only happened in sci-fi movies. Yet today it’s a routine part of everyday life. 54.4% of the world now has internet access; even people in Sub-Sharan Africa have smartphones.

The Rise of Blockchain

The rise of blockchain is not dissimilar. Right now, blockchain is a niche technology. Most people associate blockchain with cryptocurrencies like Bitcoin, but its potential goes far beyond cryptocurrency.

The blockchain is a digital ledger. It records transactions in a verifiable way. Blockchain first came into being in 2008. A message sent to a cryptography group by Blockchain’s elusive creator, Satoshi Nakamoto, revealed that he was working on a peer-to-peer electronic cash system. His technology enabled a network of people to share information and agree that this information was the truth. It solved the problems that had previously dogged all attempts to create an electronic currency.

The beauty of the blockchain ledger is that is error-free and tamper-proof, which makes it a highly efficient way to store and share information. The very nature of blockchain means it can be applied to other applications besides cryptocurrency transactions.

Because blockchain can be used to track transactions and items, it has the potential to revolutionise the way information of all kinds is stored, accessed, and shared. The potential applications of blockchain are limitless.

Blockchain and FinTech

Financial institutions have already started work on blockchain-related projects. According to data from the World Economic Forum, 80% of banks have initiated blockchain research projects. Blockchain is already being implemented in the foreign exchange market, which could change the way online trading transactions are made.

It’s becoming increasingly clear that banks, while initially sceptical of what blockchain could do, are now open to its potential. Blockchain may be under increasing scrutiny from regulators, but banks are pouring money into blockchain research. Blockchain tech forms successfully raised $367 million in venture capital funding last year.

One area of specific interest includes clearing and settlement of funds. The Australian Securities Commission is undergoing a restructuring project, with the aim of moving post-trade clearing and settlement on to a blockchain ledger system.

Elsewhere, China UnionPay has developed a loyalty program that works in blockchain; this operates across multiple banks. UBS in Switzerland is working on a digital currency for use in financial markets, whereby tokens will be issued, which can be exchanged for cash. Many believe that it won’t be long before individual banks develop their own digital currency and cash as we know it will become redundant.

Blockchain and the Supply Chain

Blockchain also has huge potential in supply chain management and logistics. Managing a global supply chain is extraordinarily complicated. There are hundreds of separate invoices, transactions, shipping documents, payments, and entities involved at any given time. Goods often go astray and there are numerous opportunities for fraud to take place. Imagine being able to order an item from another country, track it’s every movement, and feel 100% confident that it will arrive swiftly and at the designated time – blockchain can make this happen.

De Beers is already using blockchain to track its diamonds from the mine, straight to the customer. This reassures customers they are buying a genuine, authenticated stone.

Blockchain has the potential to reduce costs and streamline millions of complex processes, from everyday financial transactions to online shopping. It even has the power to transform our healthcare system, by moving EHRs on to a blockchain system to make them more accessible and secure.