Blockchain poised to revolutionise the financial services industry
It’s tempting to dismiss blockchains and the cryptocurrencies they support as a techno fad that will fade as quickly as it appeared. However, there are growing signs the technology is poised to shake the financial services sector to its core.
At its heart, a blockchain is a digital ledger in which transactions between parties are recorded chronologically and publicly. Based on blockchains, cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, independently of any banks.
Its role in the financial sector
While awareness of blockchains and cryptocurrencies is already very high in the financial services sector, adoption is still in its infancy. That said, there are expectations the technology has the potential to revolutionise the way business is conducted, even if this point is still some way off.
According to analyst firm Gartner, in 2018, 85 per cent of blockchain-name projects will actually deliver business value without using a blockchain. By 2022, only 10 per cent of enterprises will achieve any radical transformation as a result of using the technology.
That said, there are certainly some firms that are already dipping their toes in the water to determine how blockchains can assist their operations. While these trials might be small, they are certainly being taken very seriously.
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