Thought Piece | Thought Piece
How Web3 is changing the future of finance
by Liam Springate-Jones
Blockchain has become one of the most disruptive forces in modern technology. It combines several technologies to provide a trusted storing system of transactions made between multiple parties. With blockchain, businesses will have more transparent data, enhanced security and instant traceability as all transactions made are time-stamped so users can view the entire history. Blockchain also provides a platform for combatting fraud while reinforcing trust and streamlining the payment process.
The power of blockchain for payments is undeniable and it’s transforming major industries, such as finance, retail and healthcare. But what about its use in the construction and infrastructure sectors? Blockchain offers a lot of value in the infrastructure space when it comes to automating processes and delivery. It presents an opportunity for forward-thinking businesses to evolve and solve major challenges.
Today, digital technology has a massive role to play in infrastructure – which is the physical systems of structures and facilities, such as roads, transport, energy supplies and buildings. There’s no doubt that in recent years digitalisation has transformed infrastructure by providing data-driven tools to efficiently manage and improve performance, as well as to change and adapt to deliver the best value. From reduced operational costs and safer data storage to streamlined data analysis, there’s a range of advances in digitalisation in global infrastructure.
So, what about blockchain? The impact of digitalisation and blockchain can already be felt across several infrastructure sectors, such as transport, energy and mining. For example, blockchain serves as a valuable data verification tool in transportation and logistics. Blockchain can help track the performance history of different carriers by recording data about deliveries. It improves supply chains by creating faster and more cost-efficient delivery within transportation.
Through blockchain’s decentralised ledger system, transportation businesses can remove the need for the manual work involved in tracking the movement of goods across national and local territories. Blockchain has the potential to create a new model for infrastructure, one of which is much more sustainable with improved processes. While bitcoin (the original application from blockchain) has often been recognised as harmful for the environment, there are certainly ways to implement blockchain that will have a positive effect on infrastructure.
According to a case study by OECD, blockchain could support stakeholders with tracking information and data on infrastructure projects, which serves to assess asset performance and ensure compliance, in line with sustainability standards. Blockchain can also be a powerful tool for the energy sector for facilitating transactions between generators and energy consumers, which can include peer-to-peer electricity trading and automated management of power and grid energy storage. Ultimately, blockchain can improve the connections between many important infrastructure networks and enhance the data transaction process.
There’s no doubt that blockchain will continue to evolve in the future. The global cryptocurrency market cap reached $3 trillion at the end of 2021, which means there’s a huge demand for blockchain. When it comes to infrastructure, blockchain-focused applications have already proven to be highly effective for the supply chain and logistics industry. For example, TradeLens is a blockchain solution that delivers improved efficiency and transparency, providing a much more holistic view of data. Supply chains are highly complex so blockchain has the potential to completely transform the process. Blockchain is expected to be even more widespread in the coming years and IBM’s Vice President believes blockchain will accelerate the economy within the next ten years – which is all the more reason for businesses to take advantage of blockchain technology to spearhead their growth.
Do you want to learn more about Splendid’s products and services and how we are helping brands and organisations take advantage of Web3 & Blockchain? Then, contact our new business director, Stuart Hobbs for more information. Whatever stage your product is in its digital life cycle, the Splendid team can help. We look forward to hearing from you!