The World Economic Forum estimates that more than 25 countries have invested in blockchain technology and have applied for more than 2,500 patents with an investment of $ 1.3 billion. The time is ripe for the financial sector to disrupt the blockchain. In a survey conducted by the IBM Institute for Business Value and the Economist Intelligence Unit, a seventh of the companies known as trailblazers stated that they expect the blockchain to be put into production and commercial scale this year. IBM further estimates that 65% of banks will have models within three years.
Take Bitcoin as an example to illustrate the complexity of regulation. This technology challenges not only the way of organization but also the government, so it is far from a quick process to find a suitable regulation for both.
No third party intermediary is required to verify or transfer ownership. If the stock transaction is carried out on a blockchain-based system, it will be settled safely and reliably within a few seconds. (The infamous hackers who influenced Bitcoin transactions revealed that the weakness does not lie in the blockchain itself but in an independent system linked to the parties using the blockchain.)
Blockchain has enormous potential and is expected to unlock a wave of innovation. In other words, it is really full of complications, and even those close to it do not know how it will work.
The development of replacement applications requires careful planning as existing solutions can be difficult to solve. A sustainable method may be to focus on alternative products that do not require end users to change their behavior but provide alternatives that are expensive or unattractive solutions. To be attractive, alternative products must have as good functions as traditional solutions and must be easy for the ecosystem to absorb and adopt. First Data’s relocation of blockchain-based gift cards is a good example of a well-thought-out alternative.
Retailers who provide it to consumers can use blockchain to track currency flows in their accounts, greatly reducing the cost of each transaction and improving security without relying on external payment processors. These new gift cards can even transfer balances and transaction functions between merchants via a general ledger.