This is a guest post by Leonid Shangin, CEO & Co-Founder, SLP Network. Crypto-News India urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.
Leonid Shangin is a leader in the customer loyalty space. He worked as a Management Consultant for McKinsey & Company and then as a Senior Business Development Manager for LaModa, one of the largest eCommerce retailers in Russia. After departing LaModa, Leonid founded SailPlay, the leading customer loyalty platform with over 100 clients around the world that includes organizations such as Estee Lauder, Sephora, and Papa John’s.
When it comes to change, most industries move at a glacial pace. Securing buy-in, executing training and implementation of new technologies at any organization is no small feat, and it’s even more difficult on an industry-wide scale.
But every now and then a technology comes along that promises such efficiency, productivity, security and profitability that a market shift is inevitable—you either move with the tide or get swept out to sea.
Blockchain is one such technology, though expert opinions vary on exactly how disruptive it’s going to be. First brought to public awareness as the technology that powers cryptocurrencies like Bitcoin and Ethereum, blockchain, per Wikipedia, is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”
And that’s as good a definition of the technology as any, given that its standards are still in flux and there is little regulation. Even so, blockchain is already making its way into multiple industries and, while it is most associated with cryptocurrency now, it has the potential to shift the structure of information storage and sharing and change how we conduct personal and business transactions across the globe.
Massive data breaches, such as Yahoo! and Experian, in recent years have brought data security to the forefront of corporate consciousness. This has been steadily increasing corporate interest in blockchain, as decentralization and end-to-end verification of blockchain ledgers offers a level of security that is far more stable and less open to hacks than any other cybersecurity tech available.
Blockchain also has the ability to streamline and shorten back end processing of any kind of transaction. It eliminates the need for third party verification of transactions and reduces redundancies in the authentication process, leading to quicker settlement of accounts and fewer errors. It is also accessible by multiple organizations simultaneously, meaning fewer informational siloes and faster, more efficient processing.
The global blockchain technology market size is expected to reach $7.59 billion by 2024, according to a new report by Grand View Research, Inc., a 37.2 percent CAGR over the course of that timeframe. The report notes demand for blockchain across the financial services, consumer or industrial products, technology, media and telecom, healthcare, transportation and public sectors.
Blockchain-as-a-Service (BaaS) vendors are also popping up to answer the demand for assistance in the mountain-moving task that is implementing new organizational technology, creating an entirely new market segment.
The learning curve definitely is a factor in the rate of adoption of blockchain across multiple verticals—consider that 60 percent of transportation sector respondents to a recent Gartner survey said that blockchain was interesting, but they remain unclear on its usefulness. Many still mentally tie blockchain to Bitcoin and can’t see around that.
However, as more and more merchants accept cryptocurrencies, and consumers pay more attention to their own privacy, consumer demand is going to continue to grow. From the consumer side, increased security of personal and financial information during digital transactions and the convenience of one-click purchasing is an attractive proposition.
As such, blockchain-powered consumer apps are already springing up everywhere, and are likely to grow exponentially as public awareness increases. Personal banking and peer-to-peer payment apps, ecommerce apps, loyalty apps and more, all secured by blockchain, are expanding the market and creating tons of new revenue streams.
The tech and venture capital worlds love a “disruptor,” a “gamechanger,” or any other number of buzzwords, so investment into blockchain is heavy even as its real world applications are uncertain. While it may be true that blockchain is a bubble that could eventually burst, the technology itself is sound and has endless potential, so don’t expect it to be a blip on the world market. Blockchain undoubtedly has much more in store.
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