This article was written by Yossi Apple, a fintech consultant.
Blockchain is the year’s buzzword in technology.
After Bitcoin captured the world’s imagination and undermined the peace and tranquillity of governments and international banks alike, the matter quickly shifted to the underlying concept – Distributed Ledger Technology (DLT), or Blockchain. As with any new industry that challenges the existing order, it did not take long until the ‘problem child’ became legitimate.
Naturally, the major players in the market always ultimately enter the business.
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Beginning in Q1 2016, investments totaling $1.1 billion were made in Bitcoin-based and Blockchain-based start-up companies. The tremendous surge in the number of stable financial institutions that are investing speaks volumes about the sector and a revolution that is parallel to the internet itself, centered around Blockchain in the technological arena.
“Radical change is expected within several years,” says high-tech and capital market specialist Saar Pilosof. “Initially, despite the fact that the majority of those involved in this sector had no understanding of problems such as double expense or the problem of the Byzantine Generals, the idea of a decentralized currency that is based on publicly accessible record was appealing since it can neutralize or minimize centralization.”
Supporting these statements is financier Haim Toledano, a specialist on the capital market and decentralization technologies: “Today, we need support of the concept in various communities, from social justice warriors who ‘conquered’ Wall Street to the new wave of Peer to Peer – P2P – entrepreneurs who built a collaborative economy. In addition, there is another need. The largest global organizations are exposed on a daily basis to hacking attempts. Blockchain allows for the creation of a financial transaction management system with no central administration that is considered the weak link in information security that can be penetrated. The Blockchain sectors that will spark tremendous interest include cloud storage, identity security, and smart contracts.”
“This technology is expected to save time and money. This type of information security eliminates the need for a mediator and cost of payments therein,” adds Saar Pilosof.
Haim Toledano and Saar Pilosof are not alone. IBM, Microsoft and other software and technology giants are already deep in the development race. As such, other corporate giants will move in this direction in the security and storage sector. Experts initially estimate that this will occur in large waves until the phenomenon becomes widespread and events occur at a faster pace.