The human existence is based on mutual trust, particularly when it comes to financial transactions, as there is the involvement of intermediaries in most of them. These intermediaries, such as banks and financial institutions, facilitate the transactions in return of fees as a consideration. Similarly, the shared mobility segment, as in peer-to-peer car rentals, too depends heavily on centralized intermediaries to enable smooth operations. Whether it is mobility or commerce, there is a need to ensure trust and transparency so that the users are confident about the security of the transactions.
The Blockchain technology has brought a new perspective as it holds the belief that intermediaries should not be given the liberty to charge transaction fees for their services; rather, frictionless sharing and trust should be the basis of services and transactions. The shift towards the blockchain’s decentralized network is poised to change the future, with the benefits of trust and transparency, elimination of intermediary transaction costs, and reduction of fraud risk.
All About Blockchain
To begin with, it is important to understand the technology of the blockchain. As the name suggests, it is a consistently growing list of records or data blocks, with each individual block having a unique key. A chain is formed as each newly added activity yields a block which is added to the previous block, thus creating a blockchain. As blockchain is a distributed ledger, it is not owned by an intermediary, rather it is distributed in a peer-to-peer network with shared ownership. There is no way in which blockchains can be altered; they can just be augmented with additional blocks which are subsequently verified and distributed across the entire network. There is neither a centralized database nor the need for intermediaries, which adds trust and transparency to the technology.
Blockchain will rewrite the future of mobility and commerce
The benefits of this technology are not limited to financial transactions (even though it is much hyped in context of Bitcoin transactions). The technology, in fact, is poised to have a far-reaching impact on the mobility and commerce sectors too. The reason is that these industries have a massive number of daily transactions and also that they are heavily dependent on centralized intermediaries. Let’s delve deeper into the dominant role that the blockchain will play in revolutionizing mobility and commerce.
Corruption has always been a key concern around contracting as contracts have been obtained in the past even without having met the required set of conditions. But things are not going to be the same as blockchain will bring smart contracts to mitigate the risk of corruption. With this technology, the role of intermediaries will be nullified as contracts will be coded for automatic execution when a pre-defined set of conditions is met. From business to healthcare, housing, and more, smart contracts are going to bring positive changes everywhere.
The insurance sector too has come across a far-reaching impact of this disruptive technology. It facilitates peer-to-peer insurance, which ensures speed and transparency in the entire operations of the insurance providers. While the decentralized system streamlines the premium collection process, it also adds transparency to claim disbursal and minimizes the chances of security breaches too.
V2V Data Sharing
As the Blockchain technology proliferates the automotive segment, it enables seamless Vehicle-2-Vehicle data sharing to make driving safer than ever. The shared data relates to road safety, with elements such as traffic status, road conditions, and weather data, all of which ensure road safety for the vehicle owner as well as the peers. Data is distributed on a decentralized, transparent, and hack-proof network, which ensures that the data transmitted between vehicles is always safe and valid.
Until now, ride-sharing apps such as Uber have been making money in the role of intermediaries to the extent of exploiting the drivers by taking a hefty share of their earnings. However, the adoption of Blockchain technology is going to change things for the better. As it will offer a direct, peer-to-peer system, payments will go directly to the driver and there will not be an intermediary to take a part of their earnings.
Seeing the amazing benefits of the technology, the adoption of blockchain will be a necessity and not a choice in the coming times. Businesses should, therefore, try to expedite the adoption process to stay ahead in the race. There is a need to find a reliable technology partner to come up with a digital strategy for making blockchain’s adoption as seamless as possible. At Orange Mantra, we are a team of technology specialists with full-scale expertise in Blockchain and a range of other disruptive technologies such as Artificial Intelligence, AR, VR, Big Data, and more. We make sure that businesses are able to avail the extensive benefits of digital transformation for rapid growth. Get in touch with us to unleash the unmatched potential of the blockchain!