Blockchain Technology in Practice

Blockchain Technology in Practice

In the normal money transfer from one account to another, a process that involves the existence of several levels of processing the received information is initiated, where each link of the chain checks the validity of the data, which means it may take quite a long time and can raise fees charged on the commission. With digital blockchain money, this process is automated and checking is done without the need for a human factor to participate. Here we come to an interesting situation when the expectations of system users are in the interest of cash flow to be as quick and cheaper as possible, and the interests of banks where money transfer is one of their sources of income. It is indicative that banks and institutions are the first to react to this technology.

Two years ago, the famous US bank Goldman Sachs, together with IDG Capital Partners, invested $ 50 million in the launch of Circle Internet Financial. Giants in the banking and finance sector, such as JPMorgan, Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank or BNP Paribas have been experimenting with blockchain for some time in order to reduce the costs that arise as a result of a money transaction. It will be interesting to observe how banks will try to survive in a market game with new rules. Individuals claim that blockchain is the beginning of their end, but it is still hardly imaginable as long as there is capitalism.

What other companies did

Bankers aren’t the only ones that realized the great potential of the new technology. A company named Everledger uses blockchain to provide data (over forty characteristics) about each individual diamond and they in this database already have data for over one million precious stones. IBM has implemented a blockchain-based system for its own needs to make money circulation cheaper and simple.

The Guartime company from Estonia created a database called Keyless Signature Infrastructure, whose function is to provide protection of information about citizens held by public authorities because citizens use one thousand of electronic services. Sweden is implementing the establishment of a database with cadastral information, while Greece has announced that it will do the same thing.

One of the leaders in the practical application of this new technology is the city of Dubai, which plans to transfer the entire infrastructure related to registration and licensing in the sphere of business to the blockchain. This will shorten the time that is normally needed to go from just an idea to the whole business project to a large extent. It remains to be hoped that other states as well will soon implement experiences from Dubai in their own field.

The potential was also seen by the United Nations, which are implementing a project to divide humanitarian aid to refugees in Jordan, which is based on new technology. They also launched a project called Building Blocks, aimed at reducing the money transfer costs of the WFP (World Food Program).