The Blockchain Revolution:
Blockchain technologies are changing businesses around the globe. Professional services, banking institutions, technology companies, resource industries and discrete manufacturing industries are expected to invest significantly – according to reports, spending from companies on blockchain networks are expected to double this year. Compared to last year, the blockchain revolution is gaining momentum.
But What’s the Reason?
In early 2016, the International Monetary Fund announced that distributed ledgers had the potential to offer faster and cheaper financial services; blockchain technologies have been successfully reducing transaction times to only a few seconds and at a lower cost when compared to bank transfers. For instance, several companies are showing confidence in Ripple’s (XRP) xRapid product with the potential to make transactions in only a few seconds. Along with that, analysts say; “Blockchain has the potential to replace mediators who are present today in multiple industries to provide transparency and accountability, such as banks for financial transactions, universities for verifying academic certificates or music companies to reward music creators.”
Even banks themselves are evolving to the technology. Since 2015, the Bank of America(NYSE:BAC) has filed for 43 blockchain patents. Bank of America’s Chief Operations Bessant said, “It was important for the company to stake its claim in the blockchain space, even if it wasn’t sure of the commercial applications.”
But What About Cryptocurrencies?
In spite of positively backing blockchain technologies, analysts and market regulators are strongly criticizing cryptocurrencies. But 75% of current investments in blockchain technologies are being accounted for by Financial services and Technologies companies. So what’s going on?
Regulators all around the world are raising concerns over the instant growth in cryptocurrency prices, as they believe these currencies don’t have any underlying value. This lack of regulatory requirements has been felt especially in recent weeks with prices of cryptocurrencies declining. The impact was so great that the overall market capitalization of cryptocurrencies reduced massively from $830 billion on Jan 7 to $507 billion at present. Fake ICO’s and Ponzi Schemes are also adding to the fear.
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