Distributed electronic ledger technology blockchain is set to grow worldwide, from $2-billion in 2018 to $60-billion by 2024, and is expected to be a core enabling technology that enhances security and allows for real-time transaction processing, says information technology service provider Bluegrass CEO Nick Durrant.
“This technology can support many aspects of the digital economy, including shopping, conducting business, delivering healthcare, entertainment and staying connected with a social world,” he says.
Blockchain provides a robust environment to share data securely in real time. It comprises digitally recorded data – encoded and distributed as secure blocks – and the demand for this technology is growing.
“Digital data is managed in real time over the Internet and the use of blockchain is spurred by the changing ways of managing global transactions across national borders,” he adds.
Blockchain will help banks and other financial services organisations, as there are different types of distributed ledger systems, each obeying specific security and privacy rules.
“Online payments have gained traction and card-based payments have also increased. Blockchain technology improves the speed of transaction processing and [ensures] greater efficiency in real-time processing,”
he says, adding that blockchain technology can serve as an objective, trusted third party to facilitate transactions.
One of the most common uses of blockchain is to transfer digital funds from one person to another, or from one company to another, making it possible to validate transactions 24/7 and independently of banks and institutional intermediaries.
“Blockchain transactions can be processed and settled within a matter of seconds.”
Further, of the large corporations with more than 20 000 employees, 57% are actively considering or are deploying blockchain, and blockchain services are some of the fastest-growing applications in cloud environments, he adds.
The technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, as well as tracking digital use and payments to content creators such as musicians.
“Blockchain will help considerably with digital content downloads by ensuring that the artist or creator of the content gets paid fairly. It could also provide real-time and transparent royalty distribution data to musicians and content creators.”
This technology is important because it creates trust in peer-to-peer networks, states Durrant.
Blockchain is also useful in monitoring supply chains. By removing paper-based trails, businesses can identify inefficiencies within their supply chains immediately, as well as locate items in real time, he adds.
It also enables businesses to view product performance from a quality-control perspective as they move from the warehouse to the retailer.
“Use-case analysis indicates that blockchain can improve visibility of transactions across supply chains and drive more-efficient and compliant asset management, as there is no central point of failure,” says Durrant.