- Get to know Blockchain, a technology that will disrupt all industries. Understand the process, impacts, and next steps of Blockchain with Polapat Arkkrapridi, MD of Corporate Venture Capital division at Digital Ventures.
- From 2017 to today, there are over 6 billion USD of investment funds in startups for Blockchain development worldwide. Also, it is estimated to increase to 3.1 trillion USD by 2030.
- Cryptocurrency derives from Blockchain, today, its value amounts to 3.8 hundred billion USD
We believe that fans of the Digital Ventures blogs are more or less familiar with Blockchain. However, in 2018, the Blockchain technology will move even closer to users, especially in the business and public sector where they will gain more tangible applications. Hence, we need to gain a clearer perspective to see where it is heading next. Here are Digital Ventures keynotes from the discussion on Blockchain Changes the World by Polapat Arkkrapridi, MD of Corporate Venture Capital division at Digital Ventures at the recent Faster Future Forum: Unlock Blockchain event.
Regarding the concept of how Blockchain works, Paul mentions that Blockchain is a container that holds chains of data which is made possible by integrating complex and high-performance technology, one of which is Cryptographic combined with Distributed Network. Therefore, all the data are encoded and copied for users of the network.
Distributed Network gives users in the network an identical Blockchain account. Users can validate the data and arrive at a consensus to confirm its accuracy together. This prevents amendments and the correct data can be available for audits afterward.
The reason we can’t disregard Blockchain is that the private and public sector in several countries gives much importance to it. This can be observed from the continuous increase in the investments. From 2017 to today, there are over 6 billion USD of investment funds in startups for Blockchain development worldwide. Also, it is estimated that the value of businesses in Blockchain will increase to 3.1 trillion USD by 2030.
Smart Contract and Digital Identity: High-potential spin-offs from Blockchain development
Following encrypted data that can prevent alteration and is fully auditable, Blockchain is applied to record transactions that require supreme credibility such as:
- Smart Contracts are contracts recorded as lines of codes in a Blockchain with conditions that automatically execute the contracts upon fulfillment. This helps prevent command and condition amendments. Moreover, they are encrypted to prevent undesired surveillance, yet records are available for audit at any time.
- Digital Identity records identity on the Blockchain. Today, they are diversely used, both for human and products.
Paul provided examples of the two applications as follow:
- Financial sector – When transactions are recorded orderly, the KYC (Know Your Customer) system develops. This helped to better target services while distributed network in the sector makes transactions seamless.
- Medical sector – They help store medical data to support speedy health services. Every hospital can access the same data, so patients can carry out their medical examination anywhere.
- Governance – The government can use Blockchain to store civil registration database and other public service data.
- Rental businesses – Not only can it store product and renting data, Smart Contract can also be applied to this sector.
- Micro Transaction – This is not confined only to currency exchange but also in other industries such as energy trade among users or managing costs in music-streaming by seconds.
- Provenance or tracking ownership of the recorded data. As Blockchain can store data that are auditable and immutable, they are used in different industries. An example is the food industry wherein users are able to track the origin of the raw materials from farm to table or even with land or property ownership and other luxury items such as diamonds, watches, artworks etc.
Paul continues to explain that government in several countries have incorporated Blockchain in their data management system. For instance, India is digitizing land records on to the Blockchain and Thailand is also preparing to use the technology to manage the country’s data.
Cryptocurrency and ICO: The Blockchain hot topic that can’t be overlooked
Another topic relating to Blockchain is Cryptocurrency and ICO which now amounts to over 3.8 hundred billion USD.
Cryptocurrency is a digital currency with an exchanging system which uses the Blockchain technology. ICO or Initial Coin Offering is a company’s fundraising procedure for general investors. They trade with tokens, the currency created for the ICO which is based on other Cryptocurrencies. Simply speaking, they are similar to the IPO that use Cryptocurrencies instead of the currencies we normally use today. Currently, there are over 1,500 tokens and they can also be used for the Smart Contracts.
Paul concluded that although Cryptocurrency’s value has sore high and aggressively swings on a weekly basis, yet it is considered a digital asset or digital tool that is needed for activities on the Blockchain. This means that if Blockchain continues to develop to a wider periphery, Cryptocurrency will develop alongside, thus, its progress seems quite promising.
This is a summary of Paul’s talk about the Blockchain and its next steps. For more insights, we recommend a Fireside chat by Paul and Brad Garlinghouse, CEO of Ripple, here. We will be sharing more ideas from the Faster Future Forum 2018, stay tuned.