Last Updated: 27 Nov 2020 | 11 min read
Blockchain, as a technology, is powerful enough to change or disrupt business models in almost every industry. Currently, the financial services industry, which processes trillions of dollars’ worth of transactions every day, is evaluating how blockchain can address the inefficiencies and loopholes in the present system. On the other hand, a recent report released by a leading market research agency states that blockchain technology in the telecom market will grow from $46.6 million in 2018 to $993.8 million by 2023.
Blockchain, the technology that supported the incredibly-hyped Bitcoin ecosystem, managed to pique the interest of the financial sector. It’s one of those industries that witness millions of transactions worth trillions of dollars every day. Today, they started experimenting with blockchain to see how they can leverage the concept of the “decentralized ledger containing all transactions that take place across the network” to transform the global financial system.
Blockchain is creating equally intriguing and possible groundbreaking ripples in the telecom industry. According to the experts of a leading market research agency, blockchain in the telecom market was at $46.6 million in 2018. They believe that it will increase to $993.8 million by 2023 at a Compound Annual Growth Rate or CAGR of 84.4%.
These records are staggering, and the best blockchain development and consulting company had no idea that it would become a revolutionary form of technology. That’s why the experts working with the company wish to share their knowledge. If you belong to the telecom or finance industry, then this topic is a must-read for you. Once you finish reading it, you may even consider hiring these providers of blockchain development services.
For Financial Sectors:
So, what does blockchain have in store for the finance industry? What will make the top dogs in the banking sector and other fields resort to the services offered by a blockchain development and consulting company?
(1) Faster settlements in stock markets: According to the database of the World Federation of Exchanges, the total value of stocks traded around the world is around $77.5 trillion. With every passing day, the market is expanding in terms of size and complexity. As the transaction times and operational costs became critical points of concern, major stock exchanges started exploring blockchain for its potential to facilitate immediate settlements. It can also automate compliance through smart contracts with greater levels of transparency and security.
(2) Payment simplification: Decentralized ledgers can simplify payments in retail banks, particularly international payments. After all, they usually involve paying high fees, and they also take a long time to complete the process. Furthermore, banking firms can use blockchain to verify the identities of customers, especially in retail banking. Once an authorization agency verifies the personal data of customers, they will be eligible to receive public and private keys for the blockchain. After that, the ledger functions as a decentralized and common mechanism for authenticating a customer’s identity across banks.
(3) Accuracy in asset management: The asset management industry is growing by leaps and bounds over the last few decades and will touch the $145.4 trillion mark by 2025. This particular industry uses intermediaries to meet the demands of the investors for a global set of products. In doing so, it makes the process complicated and time-consuming. The distributed ledger of a blockchain can enable direct trading and settlements across boundaries, which in turn can reduce expenses, increase data accuracy, and reduce delays.
For Telecom Sectors:
If you’re the owner of a telecom firm, then you shouldn’t feel left behind. Just continue reading to see why you will need blockchain development services sooner rather than later.
(1) Process simplification: In roaming partner settlements, current processes usually take a month, and issue resolution timelines increase up to two months. By using blockchain systems, it’s possible to simplify the process with real-time views. It aids in faster identification of problems, resolutions, and dispute reduction. Companies can automate the SLA agreement documents into smart contracts through programmable blockchain solutions and offer a real-time view to all stakeholders with threshold breaches made visible immediately to all the parties involved in it.
(2) Revenue streams: Sharing any identity reference document, such as a passport or driving license, with relevant parties on the individual’s consent is the best way to simplify the process of KYC document verification. Every industry or enterprise that works with KYC documents should consider incorporating blockchain. It allows decentralized storage of these documents, but the control remains within the grasp of the individual.
(3) Enhanced collaboration: Due to the blockchain system, carrying out multiple business transactions becomes much more efficient than before. The whole thing takes place in a consortium model where stakeholders have a common interest that brings them together to be part of the blockchain network. In the world of telecommunications, CSPs connect with their partners, suppliers, and other telecom agencies to provide connectivity, services for their customers, and to stick to SLAs. It’s the only way to provide a seamless customer experience. It’s the complexity of these transactions and interactions between these parties that make the presence of trust, security, and transparency important.
Selecting the right one
While Bitcoin was the first blockchain technology, many other versions are available today, such as Hyperledger, Ethereum, Multichain, Ripple, Corda, Sawtooth, and specific domain solutions. You have more than enough choices to explore, and every technology is in a unique maturity stage. In reality, they are continuously evolving. However, you may also consider hiring blockchain development specialists instead of using the ones mentioned here. They will be able to create a customized blockchain platform for your enterprise.