# Blockchain’s potential in 2019 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-02-13 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Blockchain: Revolutionising Finance and Business Meta Description: Explore the endless possibilities of blockchain technology beyond cryptocurrency. Revolutionising finance, simplifying transactions, and enhancing security! Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/blockchains-potential-2019html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jh-1736839167282-compressed.jpg) _**Dr. Johnny Hon**, Chairman – The Global Group_ Although Blockchain was a technology first discovered in 1991, it did not become well-known until the phenomenon of cryptocurrency popularised it. However, blockchain now has a far greater purpose beyond simply cryptocurrency, with many and growing applications for businesses and consumers across different services and products. This is particularly true of the world of finance which has the [potential to be transformed by blockchain](https://www.financedigest.com/the-real-potential-of-web-3-0-and-blockchain-for-business.html "The Real Potential of Web 3.0 and Blockchain for Business"). Blockchain records [digital ‘blocks’ of information in different locations that can be controlled](https://www.financedigest.com/the-automation-control-system-market-to-see-through-the-probable-sea-change-through-digitization.html "The Automation Control System Market to see through the probable sea change through digitization") by multiple people. This ensures all parties can review previous entries and record new ones making it easy to manage, quick to distribute, cheap to operate and most importantly nearly impossible to corrupt. Hence, blockchain lends itself incredibly well to economic transactions making it the perfect tool to use within financial [corporations](https://www.financedigest.com/9-issues-in-corporate-finance-and-strategies-to-overcome-them.html "9 Issues in Corporate Finance and Strategies to Overcome Them"). **Smart contracts** ![Dr. Johnny Hon](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/johnny-450x675-1736839167264-compressed.jpg) Dr. Johnny Hon [Industry experts](https://www.financedigest.com/fiat-republic-the-specialist-baas-platform-that-bridges-web3-and-banks-announces-the-appointment-of-two-industry-experts-as-non-executive-directors-to-the-board-of-its-dutch-subsidiary.html "Fiat Republic, the specialist BaaS platform that bridges web3 and banks, announces the appointment of two industry experts as Non-Executive Directors to the board of its Dutch subsidiary.") have high expectations for the capabilities of blockchain technology within smart contracts. These contracts are computer programs which help accelerate and secure contract negotiations or agreements, and in theory, should be more secure than traditional contract law. Smart contracts eliminate the middleman – [saving an immense amount of time](https://www.financedigest.com/modernisation-of-insurance-technology-saves-invaluable-time-and-money.html "Modernisation of insurance technology saves invaluable time and money"). They help exchange anything of value such as money or [property shares](https://www.financedigest.com/shares-mixed-on-fed-warning-china-acts-on-property.html "Shares mixed on Fed warning, China acts on property") in a transparent and conflict free way. Like traditional contracts, smart contracts still define rules and penalties around agreements, but they also enforce the obligations automatically, speeding up the process. Following the incident involving the Decentralised Autonomous Organisation (DAO)’s Ethereum blockchain, which was hacked in 2016, [smart contracts have come a long way and will surely continue to improve](https://www.financedigest.com/improving-your-home-with-smart-automation.html "Improving Your Home with Smart Automation"). **Simplifying cross-border transactions** Traditionally, [global trade](https://www.financedigest.com/glimmers-of-hope-as-global-trade-talks-stretch-into-final-day.html "Glimmers of hope as global trade talks stretch into final day") has been a process which not only requires time, but also one that generates an immense amount of documents which are often difficult to track, as well as being prone to human error, fraud or smuggling. Blockchain provides a great way to both speed up and simplify the process of [cross-border payments](https://www.financedigest.com/crossing-the-rubicon-why-cross-border-payments-are-primed-for-transformation.html "Crossing the Rubicon: Why Cross-Border Payments Are Primed for Transformation "). The International Chamber of Commerce (ICC) [launched the Intelligent Tech & Trade](https://www.financedigest.com/britain-launches-trade-system-for-developing-countries.html "Britain launches trade system for developing countries") Initiative (ITTI) in 2017, which aims to concentrate on how global trade can benefit from AI and blockchain. As a result, companies are becoming increasingly confident that faster and more efficient methods are possible. Companies across the world including IBM and shipping giant, Maersk, are now using AI and blockchain technology to [introduce new supply chains](https://www.financedigest.com/amazon-introduces-seller-storage-service-to-tackle-supply-chain-woes.html "Amazon introduces seller storage service to tackle supply chain woes"). This means they are minimising costs, using a more economical system with the elimination of paper contracts and protecting [digital](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital") systems from cyber-attacks. Our motto at the Global Group is “Bridging the new frontiers”, and I [firmly believe that technology](https://www.financedigest.com/technology-trends-heat-up-for-financial-firms.html "Technology trends heat up for financial firms") is a key way to help us achieve this. Blockchain is free of currency constraints, making it a more collaborative method for [international business](https://www.financedigest.com/a-taxing-issue-ten-tax-invoicing-pitfalls-that-international-businesses-must-avoid.html "A taxing issue: Ten tax invoicing pitfalls that international businesses must avoid"). [**Identity management**](https://www.financedigest.com/how-to-manage-identity-in-a-hybrid-cloud-environment.html "How to manage identity in a hybrid cloud environment") Our current online identity [management systems](https://www.financedigest.com/guide-to-choosing-a-digital-asset-management-system.html "Guide to Choosing a Digital Asset Management System") are far from being sustainable, and many pose the risk of having personal data sourced from the internet and cloned. Online identity management has become a very [time consuming and costly](https://www.financedigest.com/netflixs-gaming-foray-will-cost-time-and-money-wall-st.html "Netflix’s gaming foray will cost time and money – Wall St") process. [Blockchain technology can help solve these problems](https://www.financedigest.com/the-problem-with-blockchain.html "The problem with Blockchain") by giving users a single, re-usable online identity, replacing the multiple usernames and passwords we use and that are increasingly difficult to keep track of. This will [pave the way](https://www.financedigest.com/soft-lending-and-inflation-data-pave-way-for-smaller-ecb-hike.html "Soft lending and inflation data pave way for smaller ECB hike") to help protect individuals from identity theft. **The future of** share trading The future of share trading is also likely to be [impacted by blockchain technology](https://www.financedigest.com/how-can-technology-impact-public-health.html "How can Technology Impact Public Health"). It will allow for both a shorter settlement process and for greater accuracy when trading. Share trading has always involved many middlemen, including brokers and the [stock exchange](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments") itself. By using blockchain, you can lessen the need for a third-party regulator, [keeping costs](https://www.financedigest.com/cost-of-living-crisis-consumers-keep-spending-for-now.html "Cost of living crisis? Consumers keep spending for now") low, speeding the process up, and minimising the chances of human errors such as double trading. Blockchain’s [automated technology](https://www.financedigest.com/covid-19-makes-the-case-for-technology-and-automation-for-business-development-in-professional-services.html "Covid-19 Makes the Case for Technology and Automation for Business Development in Professional Services") also eases the amount of paperwork involved in trading. Blockchain is also hugely important in providing a world-wide, independent registrar of assets from art to jewellery to properties. I believe this can be one of the most significant uses for this technology. It is clear that there is still a long [way to go with blockchain](https://www.financedigest.com/three-ways-blockchain-is-transforming-payments.html "Three ways blockchain is transforming payments") technology, but this is what makes it so exciting. If we have already discovered these fantastic benefits of the technology, what else might it be capable of? We have truly only just [scratched the surface](https://www.financedigest.com/explainer-western-sanctions-on-banks-only-scratch-surface-of-fortress-russia.html "Explainer-Western sanctions on banks only scratch surface of Fortress Russia") of its capabilities. [Global collaboration is key to developing a well-functioning financial system](https://www.financedigest.com/fingerprints-and-tag-systems-collaborate-to-offer-contactless-biometric-payment-cards-globally.html "Fingerprints™ and Tag Systems collaborate to offer contactless biometric payment cards globally"). With blockchain already showing signs of revolutionising [global business](https://www.financedigest.com/how-i-turned-my-passion-for-art-into-a-global-business-through-online-sales.html "How I turned my passion for art into a global business through online sales") transactions, and with more corporations adopting the technology for a variety of purposes, we will hopefully see even more international businesses and financial institutions reaping the rewards. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---