A technology so revolutionary that even Bill Gates is comparing it to the rise of the Internet in the 1990s.
Blockchain is a list of records (blocks) that are linked and coded using cryptography. Every block of this compilation has information of a previous one, this contains the transaction data and the time when it was made. Sounds complex, because it is, but let’s see it this way: An open ledger in which the information remains stored and safe from any modification.
Used in peer-to-peer networks, the blockchain is viewed as a revolutionary tool that is about to take the finance world by storm, some experts say that in terms of security, efficiency, cost and utility, this system will be inescapable to anyone in 7-10 years. If you have a bank account or a property, you should be listening closely.
The HSBC Breakthrough
Hong Kong and Shanghai Banking Corporation (HSBC) has not only been experimenting with this technology since a while ago, they just made the world’s first viable finance trade transaction using blockchain commercially.
Applied to a letter of credit for the Cargill group (food and agriculture business), it has been proved ready to be implemented all across the banking industry, a move that could tremble the foundations of a very old finance sector used to traditional ways of commerce and exchange.
Blockchain technology can be utilised for these purposes:
- Decentralized digital currencies (Examples: Bitcoin, Ethereum).
- Land registration.
- Accounting.
- Smart contracts that do not need human interaction.
- Decentralized networks like the Alexandria project (a library).
- Governments and banking.
- Copyright registration and intellectual property.
- Much more.
Some of the most prominent financial institutions that are investing in blockchain technology are: Bank of America, Barclays, Santander, BBVA, BNP Paribas, ING, Goldman Sachs, JP Morgan Chase, Nomura, Wells Fargo, Scotiabank, UBS, UniCredit, CitiBank, Credit Suisse and many others.
Changes so extreme like this one are very uncommon, they take years, some decades and even centuries to be applied massively, but in the age we are living, exponential tech growth is unprecedented, leading us to a future where many advancements will find a space in our daily life very rapidly.
