London is currently the second most active city in the world for blockchain development programs with 914 projects in development recorded in 2018, three times more than its nearest European rival Paris at 288. Investments into UK-based blockchain companies continue to increase rising from $50 million in Q3 of 2016 to $150m by Q2 of 2018. More importantly for business confidence, the UK’s Financial Conduct Authority (FCA) groundbreaking regulatory sandbox is recognized across the globe for its innovative regulation of blockchain business and applications.
Blockchain is now demonstrating real operation potential in its potential to solve business problems. Recent examples include Walmart, launching its new blockchain-based supply chain and crypto currency in 2019, Amazon launching its new AWS Blockchain-based managed service recently deployed by Legal and General and Shell Oil partnering with London's Applied blockchain, launching its first-ever blockchain-based commodity trading platform in Dec 2018. In July 2019 Facebook joining the cryptocurrency market announcing the launch of its new Blockchain-based currency Libra further verifying its business credentials as a quality platform
So why is Blockchain attracting so much excitement in 2019? Below lists some of the key business benefits that we will be examining in this course:
Faster transaction times: in the context of financial Services and banks transactions between banks can typically take days for clearing and may be reliant on when the banks are open for business. A blockchain transaction is distributed across the network in minutes and will be processed at any time throughout the day.
Huge cost saving for all industries: Maintaining multiple copies of the ledger across every node in the network means that the blockchain is better able to withstand attack. Even if one node was compromised by an attack, the blockchain would be maintained by every other node. In theory, this means that an attacker would need to take control of every node simultaneously in order to corrupt the ledger.
Increasing Security and Resilience. Maintaining multiple copies of the ledger across every node in the network means that the blockchain is better able to withstand attack. Even if one node was compromised by an attack, the blockchain would be maintained by every other node. In theory, this means that an attacker would need to take control of every node simultaneously in order to corrupt the ledger. This is not the case for traditional ledger where an attack on a single trusted third party could bring down the record of transactions.
Immutability and Unchangeable. This is seen as vital key benefits of blockchain technology. As changes to the public ledger are seen and verified by all the nodes simultaneously across multiple ledgers the transactions cannot easily be altered or deleted.
Privacy and User anonymity. Buyers and sellers use anonymous and unique address numbers to process the transaction. Whilst this has been criticised for giving rise to the use of cryptocurrencies in illegal online marketplaces such as Silk Road, it could be seen as an advantage if used for other purposes, for example, electoral voting systems.
Smart contracts. A blockchain may be used to distribute a smart contract across multiple parties with the execution of the contract and the monitoring of compliance with its terms being recorded across every ledger.