Investors have flooded the crypto currency market over the past few years.
There have been some rather bizarre trends. While still producing iced tea, Long Island Iced Tea, a beverage manufacturer based in New York, announced that it would be changing its name to Long Blockchain Corp. and diversifying by shifting some of its focus to investing in the blockchain.
It shouldn’t come as a surprise that so many companies are jumping on the blockchain bandwagon, despite assertions that the ICO flood is “overvalued.”
The total value of the crypto currency market at the beginning of 2017 was $16 billion. It was $600 billion at the end of 2017.
The technology of blockchain has enormous potential. Healthcare, supply chain management, and identity management are just a few of the multi-billion dollar industries that stand to benefit greatly from it.
However, banking is unlikely to be the industry that blockchain is most likely to disrupt.
Why banks are using blockchain as a solution so frequently?
Banks conduct business with one another by entering into and keeping to agreements.
The financial sector is expected to incur annual losses ranging from $65 billion to $80 billion as a result of parties breaking agreements during this lengthy and cumbersome process.
Costs can be reduced, errors and exceptions can be reduced, new revenue opportunities can be created using blockchain technology, and this lengthy settlement period can be significantly reduced, if not eliminated.
Although many banks have expressed interest in how they can utilize the technology, most appear to be in the early stages of adoption due to the fact that the blockchain concept and application are still relatively new. Nine out of ten bank executives said their company is looking into using blockchain.
At the moment, the most common use cases that banks are looking into are transfers between banks that take place across borders.