When it comes to the blockchain, there are wide spread theories in what it can do. While most seem very applicable, the reality of their usefulness in the near future seem very distant.
So instead of waiting till we live in the Minority Report to see them all, I’ll cover 5 ways the blockchain can be used within 5 years.
The biggest beneficiary of the blockchain and distributed ledgers (like Ripple) are banks as they can have real-time gross settlement (which lowers operational costs), provide customers with new international payments systems (which increase revenue) and enhance their legacy systems to execute more complex transactions (which improves their infrastructure).
Similar to banks, back office operations of clearing and settlement can be handled by the blockchain. Not only would this reduce costs but accountability will be very clear. And though there is heavy debate on the pros and cons of High Frequency Trading, you can see someone taking it to the next level with smart contracts and automation.
RTB for advertising is a $30 Billion business that just keeps growing. Since it is already heavy in automation, similar to financial markets, the blockchain can increase speed, reduce costs and is more trackable.
Internet of Things
You can’t have two of the biggest tech breakthroughs of the last few years and not have them cross over. With 25 Billion things to be connected by 2020, the blockchain with it’s roots in currencies will be needed to automate payments: tolls, parking, subways, electricity usage.
In the PC world, mods have always been a huge thing. Players build new assets (characters, clothes, weapons) and sell or trade them with others. Imagine someone builds a new costume, sells it, and the buyer modifies it and sells it again. Because of the blockchain, the initial creator can still collect a royalty because everything has been accounted for.
Did I miss any? What other things can you see the blockchain doing in 5 years?
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