Thought Piece | Thought Piece
How Web3 is changing the future of finance
by Liam Springate-Jones
Blockchain technology is creating enormous opportunities for the growth and development of digital assets in a variety of industries. This includes finance, education, and government. Blockchain – which is now being widely utilised in the business world– has the potential to transform industries and make them more transparent, accessible, and seamless.
The technology serves as a decentralised ledger for data transactions across networks. It stores data in chained blocks, with each block of data transferred to a computer node within the network. Using blockchain as a strategic tool can be a great value add for businesses that are looking to protect their information and improve their digital infrastructure.
At Splendid UNLIMITED, we help build strong brands to improve conversions through human understanding. We enhance the quality of digital product and services for better business outcomes. We call that Digital Made Human. So, with that in mind, how is blockchain affecting key industries in the market? Read on to find out.
Blockchain technology has reshaped the world of finance. Many banks and financial institutions are investing in blockchain and DeFi solutions to improve and optimise the transactional process between parties.Blockchain for businesses uses a shared and immutable ledger that can only be accessed by members with permission.
With blockchain businesses can:
Increase trust, security, transparency, as well as the traceability of shared data across a business network.
Improve overall efficiency because blockchain enables real-time settlement, audit, and reporting.
Reduce processing times and the potential to delay.
Leading banks such as HSBC have already harnessed the power of blockchain with the creation of their Digital Vault, launched in 2019, which allows clients to access their assets in real time.
The government can benefit greatly from blockchain technology. Current government systems are insecure and costly whereas blockchain offers much more agile and cost-effective structures. Furthermore, there are many advantages of a decentralised government, such as making government bodies more efficient, building trust with citizens due to the higher levels of transparency as well as protection of data.
In a blockchain-based government model, businesses and individuals share resources over a distributed ledger secured using cryptography. Blockchain offers significant value to the government in several areas, including through the rise of smart contracts – which are digital transaction tools that can automatically document and control legal events and actions. With smart contracts, the government can create and audit transactions more efficiently without having to rely on the records a business provides. This process is much more effective and less time-consuming.
Furthermore, blockchain will play a key role in the future of the education system. For example, our client Cardano plans to build a national ID blockchain system as well as other government (and DeFi) projects in Ethiopia. This system will facilitate teacher and student records, allowing the digital verification of students’ performance.
According to research, students’ blockchain data will be put through a machine learning algorithm to help create a tailored tuition curriculum. Blockchain can retain educational records in a secure and decentralised way, which offers accuracy and the potential to create more reliable digital certificates. Using blockchain technology in education paves the way for seamless connections between students and teachers.
The automotive sector has always been fast-paced and constantly evolving with complex supply chains.The rise of self-driving cars is a prime example. According to research, the global market size is projected to grow to 62.4 million units by 2030.One of the key benefits of blockchain within the automotive industry is that it can safeguard autonomous data by recording details about a trip, such as information about traffic patterns, and infrastructure details – and other vehicles can access this data in a secured network.
Industry leaders such as Porsche have invested in blockchain start-up XAIN to implement blockchain applications in their vehicles and improve the driving experience. BMW also teamed up with the blockchain platform VeChain to develop an automotive security platform to give users more control over data exchange.
Blockchain and web3 will continue to transform industries and create more powerful and engaging experiences. Splendid is part of the UNLIMITED Group and we’ve been designing and building digital experiences for some of the world’s leading brands, such as Cera, BMW and Cardano.We’re focused on human experiences to create world-leading solutions for our clients.
So, why not contact our team of experts for more information? We’re always looking to help businesses meet their goals. You can also speak with Stuart Hobbs, our New Business Director, directly to find out more about how we can help your business.