The current economic system is deprecated. In a world where the amount of information and the quickness of its distribution are enormous, the economy still seems to use the internet as a cane, going slowly and sometimes stumbling on its way. Nobody really paid any attention to this situation and nothing revolutionary has emerged in this scenario until now.
Suddenly and mysteriously emerge Bitcoin. A cryptographed financial transaction that rewards who decryptograph it with part of the transaction value. Underpinning Bitcoin, Blockchain is a decentralized network of private data where all transactions are cryptographed and must be approved by all peers before it is permanently recorded.
That alone is already revolutionary because it virtually eliminates any possibility of data change. Another great benefit of this technology is that the majority of the transactions would be completed almost in real time, with no chances of falsification, as new blocks are added in the chain because this data would be distributed all over the network.
A lot of money is being invested to mature this technology, allowing other non-financial areas of the market to use this method. Good examples are: the music industry, that might use it for copyright control, embedding intelligence into the payment method of each song, automatically splitting each percentage of the value to those who earn the rights; the governments, who might use it to achieve a better transparency on the public accounts and to store information concerning their citizens, like property registration; and the global economy in general because more people could take part in this new economic model avoiding the bureaucratic banking procedures that deny more than 2 billion people from making business nowadays.
Although extremely promising, this technology has yet many hurdles to be adopted as a world standard.
The biggest challenges for the adoption of blockchain are inside the economic area, with the definition of how the parties can earn their share from each transaction; within technology, managing security, scalability and performance; in the regulatory area, issues related to policies, laws and legal problems arising from these transactions; and especially in the co-operative area, after all, where there is a group of people and/or institutions working together, there must be a consensus among all on the adopted standards and their governance.
Nobiletec is a multi-national consultancy firm specializes in B2B, B2C and P2P FinTech solutions.