Blockchain is a platform where transactions are recorded. It is an open source available for all parties involved. Participants in each transaction generally have their own ledger; however, Blockchain serves as a shared ledger. It eliminates the need for intermediaries in transactions and reduces the paper process, increasing efficiencies and lowering costs. Blockchain is known for being a platform on which Bitcoin and other cryptocurrencies trade, however, it is not limited to that.It can track all sorts of data in a structured format.
Blockchain has been compared to the internet in the mid 1990’s, in a sense of how big it can become. It has the potential to disrupt any industry by altering tracking systems for supply chain companies, financial institutions, healthcare institutions, and many more. It is a ledger that can hold onto health records, track every step of a supply chain process, or simply track any transfer of funds or assets. Another perk of Blockchain is its smart contracts, which is a traditional contract written in code. It automatically charges a payment when certain agreed upon conditions are met.
It can also provide a platform where people can transfer their money abroad without the use of a financial institution or central authority. In 2015, cross-border payment flows total more than $150 trillion, with the payments industry pocketing around $200 billion in service revenues. About 80% of those transactions are Business-to-business; therefore, Blockchain will disrupt the payment industry, as companies begin to take advantage of this new platform.
It is “a platform of truth and trust,” as Don Tapscott, Tapscott Group CEO and co-author of the book Blockchain Revolution, mentioned. This is an extraordinary innovation that has a long way to go. Many tech consulting firms have built teams that are helping clients implement Blockchain into their systems, as its benefits are becoming more apparent.