The potential market for the blockchain technology will eventually hit $ 7 billion, according to a study published by Bank of America this October. Amazon will benefit from incremental cloud services demand from Blockchain implementation, while Amazon will improve the efficiency of retail operations via blockchain, says the research team.
Expectations are high for companies such as IBM, Oracle, Salesforce.com, VMware and real-state and mortgage players Zillow and LendingTree, according to Bank of America. After all, what is blockchain and how it works?
Blockchain is a software protocol that is keeps a public record of transactions. Whenever someone makes a transaction, it is broadcasted to a network of thousands of computers around the world. To be validated, the operation needs the approval of all the computers analysing the information.
Since a very diverse network is involved in validating the transaction, manipulate or hack the information is much harder than in a traditional database. No one got close to hack a blockchain protocol until now.
Source of image: Devteam.com
The technology also eliminates the need of intermediary institutions to do safe transactions. For the first time in history, anyone, anywhere, without asking permission to an authority, can do a instant transfer with low cost. It revolutionises the sectors of exportation, importation, the bank sector, the financial market and many other industries.
Bitcoin and cryptocurrency were the first widely known uses of blockchain, but today the technology is influencing almost all sectors.
In terms of efficiency, the blockchain reduce costs and eliminate a lot of waste. The job of auditing documents is reduced from days to minutes. Less oversight is needed because all the participants are already self-monitoring themselves – without the consensus of all, no data can be changed. Transactions are verified in real time. The pace is much more favourable to business.