by David Drake
The initial idea behind the development of blockchain technology was to give Bitcoin an accounting backbone for its transactions. Through the use of distributed ledgers, it was anticipated that cryptocurrency platforms will be able to process digital transaction with the utmost security, free from a centralized financial system.
However, with time, this technology has proven applicability in various business management aspects of business management such as record keeping, financial services, supply chain management, among other functions.
Despite the phenomenal growth of cryptocurrency and its underlying technology, industry players feel there is still more potential to be exploited. Many businesses are realizing this and are tapping the technology. Walmart is one such business. The US-based world leading discount retailer is set to integrate blockchain technology into its supply chain management system in its live food business with the aim of reducing wastage, contamination and enhancing transparency.
Besides asset and payment management, blockchain technology is also set to revolutionize the sharing economy more, allowing trusted, direct peer to peer exchanges according to Massimiliano Rijllo, CEO of Coinnect SA.
He says, “We have seen many projects related to payment rails, micro-payments, digital assets management, and digital identity. These are for sure important applications of blockchain. Nevertheless, there are many fields where the potential of blockchain is still underestimated. In my view, it is important to mention the sharing economy and how blockchain will allow a more direct and trusted P2P exchange of services.”
Amazon, the world leading e-commerce and cloud service provider, is also tapping the the benefits of blockchain. Recently the e-Commerce giant launched AWS blockchain templates which give users pre-set frameworks so they can easily create projects on blockchain. However, this latest development had been anticipated by industry players and in the view of some, it was long overdue.
“Amazon Web Services entering the blockchain space is another development that leaves me asking, what took so long,’ says, Chris Butler, the president and co-founder of URAllowance.
According to Butler, by giving out free blockchain templates to customers, Amazon has developed a clever strategy that will see an increase in blockchain user base and revenue through service and upgrade charges.
These developments by two leading brands and household names, Amazon and Walmart, will undoubtedly accelerate blockchain acceptance among businesses that were unsure of its potential and consumers who previously had no interest for varying reasons.
With Amazon offering its customers easy access to blockchain, it is expected that the cryptoworld is headed for a blockchain revolution where a sharing economy will thrive. This will open a world of financial possibilities where anything can be monetized. Brookings Institute estimates that by 2025, the sharing economy will control a market share worth over $335 billion.
Jeff Hood, co-founder of Vantage Token says, “The direction Amazon and Walmart are heading with blockchain initiatives are going to have a positive effect on our space. AWS and its new frameworks will enable businesses to become exposed to the benefits of blockchain without many of the current barriers to entry. Increasing widespread adoption is a positive for our industry”.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.