How Blockchain is Shaping our Future

The future of finance could be dominated by blockchain technologies. A traceable global currency complete with an efficient infrastructure will not only result in massive cost reduction for all market participants, it will change global banking. Bitcoin will do for payments what email did for communication.

What is changing?

1. Blockchain will be adopted by central banks and cryptographically secured currencies will become widely used.

2. Nasdaq will launch blockchain-enabled digital ledger technology that will be used to expand and enhance the equity management capabilities offered by its Nasdaq Private Market platform.

3. The settlement of currency, equity and fixed income trades almost instantaneously through permissioned distributed ledgers creates a significant opportunity for banks to drive efficiency and potentially create new asset classes.

Control

1. New technologies such as blockchain have the potential to reduce cyber risks by offering identity authentication through a visible ledger.
2. There is no reason why requirements for numbering, maintaining and indexing records and communicating information provided in records could not be met through an electronic ledger system.
3. Car rental agencies could use smart contracts that automatically allow rentals when payment's received and insurance information is confirmed through a blockchain record.
4. A refrigerator equipped with sensors and connected to the Internet could use blockchain to manage automated interactions with the external world-anything from ordering and paying for food to arranging for its own software upgrades and tracking its warranty.
5. Small businesses could use blockchain to create trusted trading platforms among themselves.
6. Blockchain could potentially help bring robustness and transparency to the post-trade environment.
7. New technologies such as blockchain have the potential to reduce cyber risks by offering identity authentication through a visible ledger.
8. A bank could pay the supplier instantly over the Internet.
9. Blockchain technology will alter timing on risk.

Crime

1. A new blockchain startup has claimed its software could help track down criminals faster and cheaper than ever.

2. Connecticut are warning parents that a new Darknet cryptocurrency called Bitcoin could be to blame for helping underage drinkers to get buzzed.

   Implications:

Banks.

1. Blockchain will be adopted by central banks and cryptographically secured currencies will become widely used.
2. Blockchain could replace central banks.
3. Real risks remain for banks that choose to get involved with cryptocurrency firms.
4. Blockchain technology could reduce the UBS's infrastructure costs in cross-border payments, securities trading and regulatory compliance by as much as $20 billion a year by 2022.
5. The number of applications within and outside the banks could be reduced as the Blockchain transaction contains all relevant information for the successful transfer of assets and/or related contracts.
6. Deutsche bank's economist sees blockchain as a threat because of the lack of the IT infrastructure to support the technology involved.
7. Ethereum is much more general purpose than bitcoin and could be useful for banks.
8. The future of finance in many nations could be dominated by Bitcoin and cryptocurrencies.
9. A private blockchain run by banks could end up as just "another cartel" and function as poorly as the payments consortium.
   Banks could become the "custodians of cryptographic keys".
10. The blockchain could save lenders up to $20 billion annually in settlement.
11. Blockchain technology could be used to bypass today's centralised financial infrastructure entirely.

Industries

1. Time and education will need to play a role as other industries are just realizing one of the core innovations of the blockchain is its ability to reduce or eliminate trusted counterparties in the transaction process.
2. Blockchain has the potential to create new industry opportunities and disrupt existing technologies and processes.
3. Blockchain technology will make the world even smaller as it increases the speed and efficiency of transactional activity.

Governments

1. The future of finance in many nations could be dominated by Bitcoin and cryptocurrencies.
2. Blockchain technology could be used to distribute social welfare in developing nations.
3. Elections are currently an expensive and arduous. Thanks to blockchain tech they will soon be instantaneous.

refernce: https://www.shapingtomorrow.com/home/alert/665529-Future-of--Blockchain