Tag: blockchain

Blockchain will transform the financial services market

531596-web-1-0Those businesses who flog Blockchain tech in the financial services market are going to clean up, according to a new market intelligence report by BIS Research.

The report with the catchy title ‘Blockchain Technology in Financial Services Market – Analysis and Forecast: 2017 to 2026’ , claims blockchain could lead to a per-year cost savings of $6-8 billion in KYC/AML, $30-40 billion in trade finance, and $50-60 billion in capital markets.

Blockchain is seen as one of the most disruptive technologies to hit a number of industries including financial sector. This is being driven mainly by the increasing need to acknowledge the inefficiencies in the existing technologies and processes in the industry and increasing mistrust of the consumers in the financial services market, post-2008 economic recession.

For those who came in late, a blockchain is a distributed digital database that records and maintains a list of all transactions taking place in real time.

Each blockchain record is time stamped and stored cryptographically, which is tamper-proof and immutable. While the use cases of this technology are largely being explored across different industries such as healthcare, real estate, media and travel, and hospitality among others, the financial institutions have been the front runners in the development of blockchain technology and have already implemented a host of successful use cases, ranging from pre-IPO trading platform released by NASDAQ to cross-border payment platform created by Ripple.

By cutting out the middlemen and increasing the efficiency, blockchain is anticipated to cut the transaction and infrastructure costs by over 50 percent for finance companies. Consequentially, leading financial institutions and banks, including Citibank, J.P. Morgan, Goldman Sachs and Barclays among others, have all taken the steps to deploy the technology.

Due to the large scale investments being poured into the blockchain technology by venture capitalists, financial institutions and private equity firms, hundreds of start-ups have emerged in this space, spanning across use cases such as cross-border payments, supply chain management, trade finance, asset management, capital market post-trade solutions, identity and authentication, insurance, and lending among others.

The potential of various benefits such as cost-cuts, the elimination of intermediaries, the increased transparency and security among others, presented by this technology have impelled the companies to explore the technology. The financial push from financial monoliths coupled with the rising support from governments and central banks across countries are the key factors driving the growth of the blockchain technology.

According to BIS Research Analyst Shazlie Khan: “The blockchain technology could save the financial institutions over $40 billion per year in infrastructure, IT, operational, third party fee, and administrative personnel costs.”

The blockchain industry witnessed a pivotal change for the future of its market in June 2017, when this technology entered into the mainstream financial services, with IBM building blockchain for seven of Europe’s biggest banks, which are Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit, in the area of trade finance. This agreement marks one of the first real-world use cases of blockchain technology in financial services, and will pave the way for further development and expansion of the blockchain technology market across the globe.

The report presents an in-depth analysis of the various factors governing the growth of the market in addition to the Porter’s five forces analysis, gauging the competitive attractiveness of the industry. The key strategies and developments segment has been added in the report to provide the readers with the recent strategic activities of the leading industry players in the market.

Frost and Sullivan predict Blockchain will push into health

blockchain-health-care-tech-analytics-records-securityThe divination and oracles section of Frost and Sullivan has been shuffling its tarot cards and consulting the entrails and reached the conclusion that in the next five to 10 years, a blockchain ecosystem will emerge which will take control of the health industry.

A new report said that on-going digital democratization of care delivery models towards a much-anticipated personalized and outcome-based treatment will be the major impetus for blockchain adoption.

The convergence of blockchain with emerging technologies such as artificial intelligence (AI), machine learning, mHealth and Internet of Medical Things (IoMT) provides new opportunities to explore digital health economies. At its core, blockchain would offer the potential of a shared platform that decentralises healthcare interactions ensuring access control, authenticity, and integrity while presenting the industry with radical possibilities for value-based care and reimbursement models, the report said.

Frost and Sullivan Transformational Health Industry Analyst Kamaljit Behera, who penned the report said: “Burgeoning connected health devices and the need to protect against data breaches make blockchain, with its ubiquitous security infrastructure, the obvious foundation for emerging digital health workflows and advanced healthcare interoperability. It creates an additional trust layer through unique distributed network consensus that uses cryptography techniques to minimize cyber threats.

“Blockchain technology may not be the panacea for healthcare industry challenges needs but it holds the potential to save billions of dollars by optimizing current work-flows and dis-intermediating some high-cost gatekeepers”.

 

Blockchain market set to grow

redstoneblock1The Blockchain market size is expected to grow from $210.2 million in 2016 to $2,312.5 million by 2021, according to new research.

Beancounters at Research and Markets have penned the “Blockchain Market – Global Forecast to 2021” report and this shows that at a Compound Annual Growth Rate (CAGR) of 61.5 percent, the market is going to provide lots of new opportunities.

The major growth drivers of the Blockchain market are transparency & immutability, faster transactions, and reduced total cost of ownership, the report said.

The Blockchain market is segmented by provider, application, organization size, industry vertical, and region. The infrastructure and protocols provider segment is expected to dominate the Blockchain market during the forecast period, whereas the application and solution provider is projected to see the highest growth rate due to the increased demand for fast processing applications for payments and transactions.

Payments application holds the largest share of the Blockchain market in 2016. The need for banking and financial transactions has evolved from traditional payments systems to be integrated into new and always connected lifestyle which is fueling the growth of Blockchain-based payment products.

The digital identity market is expected to grow at the highest rate as the Blockchain would make digital identities more secure and efficient, resulting in seamless sign-ons and will reduce identity frauds.

The Banking, Financial Services, and Insurance (BFSI) sector is expected to dominate the market with the largest market share during the forecast period, whereas the media and entertainment vertical is expected to grow at the highest CAGR during the forecast period due to the increasing adoption of Blockchain across smart contracts, document management, and digital identities in the media industry.
SMEs and large enterprises are rapidly deploying the Blockchain solutions. The demand for Blockchain solutions is increasing due to the cost-effective and time-efficient features; its growth is specifically high in SMEs, where low cost solutions are needed, the report said.

 

IBM launches blockchain service

redstoneblock1Biggish Blue has launched a service that will allow businesses to build applications on its cloud using the Hyperledger Project’s blockchain code.

Developers designed IBM Blockchain for building enterprise-grade technology using Hyperledger Fabric, the first code released by the open source group.

The Fabric blockchain can process more than 1,000 transactions per second and has the necessary features for large enterprises to build their applications, IBM said.

It added it was working with technology company SecureKey Technologies and a group of Canadian banks to build a digital identity network using its new blockchain services.

The network, set for launch later this year, is aimed at making it easier for consumers to prove their identities when accessing services such as new bank accounts, driver’s licenses or utilities. Banks involved include Bank of Montreal, Royal Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, and Toronto-Dominion Bank.

Blockchain is a digital shared record of transactions that is kept by a network of computers on the internet, without the need of a centralised authority.

Big businesses, including many of the world’s largest banks, have been increasing their investment in the technology in hopes it can help them reduce the complexity and costs of some of their most difficult processes, such as the settlement of securities or international payments.

Technology companies and professional services firms have also been ramping up their investment in blockchain, as they race to capture the nascent market.

IBM is big on blockchain and has several large clients developing applications with the technology, including Northern Trust, Wal-Mart, and the Depository Trust & Clearing Corporation.

IBM said it had also tested a blockchain-based asset management platform for carbon assets with Chinese company Energy-Blockchain Labs. The companies aim to release the platform, built using the new IBM Blockchain, later this year.

IBM announces blockchain services for cloud

grandpa_simpson_yelling_at_cloudBig Blue has  announced new services to help companies design and develop blockchain technology in a secure environment in the cloud.

Blockchain is the tech behind bitcoin and does a shedloads of functions such as recording and verifying transactions. The big idea is that the it can create cost-efficient business networks without requiring central control.

Jerry Cuomo, vice president, Blockchain at IBM, said in a statement that the only problem with blockchain is concerns about security.

“While there is a sense of urgency to pioneer blockchain for business, most organisations need help to define the ideal cloud environment that enables blockchain networks to run securely in the cloud,” he said.

IBM said it is addressing security problems in several ways, including cloud services with the highest Federal Information Processing Standards (FIPS 140-2) and Evaluation Assurance Levels (EAL) in the industry to support the use of blockchain in government, financial services and healthcare.

The technology company also announced the opening of an IBM “Garage” in New York and London. These “garages” are similar to research labs on the blockchain created by several major financial institutions over the past year. IBM’s garages are dedicated to helping clients design and develop their blockchain networks, said Cuomo.

Garages in Tokyo, London and Singapore will also open in the coming weeks to let customers talk to IBM experts on the design and implementation of blockchain for business.