Since its emergence on the global scene, blockchain has been viewed as a revolutionary technology that can be applied in multiple use cases. At its core, the technology assures users that the information stored is unalterable, decentralised, and cryptographically hashed for extra security. Like an online text document shared to multiple users, having a decentralised distribution chain ensures that multiple instances of the document exist, and any changes made to it are transparent to everyone.
In the business world, blockchain holds the promise of being able to provide secure, real-time networks that can scale globally and support multiple industries. Razi Salih, a businessman with more than a decade of experience with financial technology (fintech), understands the immense potential this technology has for the following industries.
Financial Services
Conventional financial systems are centralised, meaning many transactions are reliant on the actions of a central figure for approvals or processing. Users interested in making numerous transactions at the same time can find this inconvenient or slow. In some cases, mediators may be required to help settle issues that arise, a process that can take time and require money.
By comparison, blockchain technology introduces efficiencies into the process. The use of cryptography ensures data is encrypted, while the decentralised nature of transactions provides transparency and immutability to financial data. There is also no need for intermediaries with blockchain, and the role of a central authority is all but eliminated.
Payment Processing
The use of blockchain in the processing of payments and money transfers has boosted the technology's standing as a legitimate solution. Making its case is the fact that transactions are processed quickly, intermediaries are removed from the process, and security is assured for every process. Compared to the global payments process, which is open to fraud and other issues, blockchain is a reasonably fast and secure option.
Music
Transparency, royalty distribution and ownership rights are some of the global music industry's biggest problems. Typically, these issues tend to take a back seat to monetisation, which is a major goal for stakeholders. However, blockchain can help address these issues, especially through the creation of a decentralised music database. Such a database can provide transparency on recipients of royalties and assure artists that ownership rights details cannot be altered. Additionally, the use of blockchain can lead to the adoption of digital currency as a mode of payment.
Smart Contracts
Smart contracts built using blockchain allow parties to meet a set of constraints before the contract's terms are fulfilled. The technology also enables access to the contract details for all parties, with the contract enforceable if all users agree to the terms set.
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