4 advantages of Blockchain Technology outside Cryptocurrency

Blockchain is a resourceful and farsighted invention of the human. The technology is viewed to bring meaningful and significant changes in the system of finance. Its decentralized, independent and transparency features make it more reliable and easily accessible for the users. Blockchain stores all the information and the records between the parties as a distributed ledger that can be easily accessed by them at any time and any place they want. 

Many cryptocurrencies or digital currencies are already based on Blockchain technology. Apart from digital currencies, it is also in use by some industries such as business, government, and healthcare, etc. It is helping the industries in improving their techniques of working, functioning and hence in performing better. It makes the organizations and users achieve accessibility, transparency, security, better functioning, and many such things at a very minimal cost.

Let us see how Blockchain will transform the industries and organizations for their enhanced performance by changing their functionalities.

Smart Contracts

Contractual transactions are time-consuming as well as a bit risky. In addition to that, it also lacks transparency, because contracts require the third party undertaking. It requires a third party to come in between or become a mediator between the two parties when they are signing a contract. 

Smart contracts are digital or virtual contracts. It does not need a third party and can perform without them. Smart contracts control the transfer of digital currencies or assets between parties but with certain conditions. A smart contract does not only include the rules, regulations, and penalties related to an agreement just the same way a traditional contract does, but it can also automatically execute those commitments. It is transparent and also accessible to both parties. None of the party can tamper it and even if they try to then the other party will automatically get informed.

Reduced Costs

Some financial institutions that provide cross-border exchanges, charge high transaction costs. It also involves middle-men or mediator to monitor and keep a check on the operations.

With blockchain, you do not need a third person to monitor and it will not even matter that you trust the other party because there is no room for any kind of fraud with this technology. The removal of middlemen leads to a reduction in costs.

Quality Assurance  

Blockchain assures quality providing the facilities of safety and security. It is very much essential for the organizations and industries to work efficiently, without any error or mistake, to maintain and upgrade their functioning. If any fault or error is found,
Blockchain will be able to trace it from the starting and after researching, necessary steps could be taken to fix it.

Efficient Accounting

Blockchain is virtual, where all the transactions are recorded automatically. This feature of Blockchain eliminates the chances of any human error. Records automatically get verified and this is how the chances of any mistakes lessen or even gets eradicated. This way it makes the transactions and accounting more accurate and also highly traceable.  

Conclusion

Despite the fact that Blockchain was initially explored for digital currencies or digital assets, it is in use and can be used in other different sectors and industries as well.

Use of Smart Contracts for Revenue Sharing

Blockchain technology has proven to be one of the most innovative inventions till date. Blockchain is the technology behind the creation of Cryptocurrency. The banking and finance industry has been benefiting a lot from this technology. Especially when it comes to the use of blockchain Smart Contracts, this technology is becoming very useful. Blockchain acts as an unbiased third party that oversees each transaction.

In simple words, revenue sharing is the distribution of profits and losses among all stakeholders of the organization. Revenue sharing has become very popular as a form of income from the internet and Using smart contracts for revenue sharing is an excellent idea.  

Revenue sharing has been in use for a long time in industries like media, entertainment, sports, hospitality, government, etc. But recently it has come into people’s knowledge because of affiliate marketing. Affiliate marketing is an online sales strategy that lets the owner of a product increase the sales by allowing others targeting the same audience, also known as affiliates, to earn a commission by recommending the product to other people. People who earn money by revenue sharing platform or affiliate marketing want to ensure that they get paid for the hard work they do.

In revenue sharing, it is sometimes difficult to accurately determine who deserves the profit-sharing. Companies have to wait for days and weeks so that they can pay someone. Speed, transparency, and accuracy are the main problems in the revenue sharing model.

How Smart Contracts can be Used in Revenue Sharing?

Blockchain Technology and Smart Contracts provide a solution to all these problems. Smart contracts are agreements created using Blockchain Technology. These are executable programs that automatically execute the payment once all the pre-agreed-upon terms and conditions are satisfied. Use of Smart contracts ensures accurate, transparent and real-time revenue sharing.

There are obviously endless possibilities for how this technology will affect online profit-sharing. Groups and companies that use smart contracts in their revenue sharing platforms will experience advanced security, along with faster payments, accurate sales reporting and a variety of other benefits.

Let’s take a look at the points on how Smart Contracts will be beneficial in Revenue Sharing.

  • Accuracy: Smart Contracts updates the data that is fully approved and updates it at the actual time it took place. This improves the accuracy of the transaction getting saved.
  • Speed: With the use of smart contracts, there is no need to wait for the fully approved transaction details. Affiliate marketing companies have to wait in order to confirm that the money has been paid and also confirm that the transaction was not fraudulent. But with the smart contract people won’t have to wait long to get paid.
  • Transparency: Smart Contracts could eliminate fraudulence from revenue sharing. Smart contracts will ensure that the part your sharing in the revenue will get deducted by itself.
  • Middlemen: Everyone wants to get fully paid for their work in affiliate marketing, which is why they don’t want the involvement of middlemen. Smart contracts are attached to the automated, decentralized ledger of the Blockchain technology. This means that there will be no third-party involvement in the ledger. With this, everything will be deeply tracked and transparent. This eliminates the middlemen from revenue sharing. 
  • Security and Programme Maintenance Cost: As we know that computer software and apps need updates very often, which is very exhausting. Some companies are looking at how smart contracts could be used for revenue sharing upgrades. Smart contracts offer more accuracy and other securities without requiring any upgrade work as the normal cybersecurity technologies do. For revenue sharing platforms, this results in more security and less maintenance time to update. This results in lower operating costs.

Revenue Sharing platform could benefit in a variety of ways from Smart Contracts. This smart technology can create livelihoods for the right people. Technology such as this helps profit-sharing and affiliate work easy and trustworthy, making it a great advantage. Smart contracts create a win-win situation for all the parties involved in the revenue sharing.

Blockchain and the legal profession

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To a common man, it may seem that blockchain is a concept that can be applied to just the crypto sector. Well, this revolutionary technology has a lot more to offer. The easiest way to think of it is as a decentralized digital ledger. In simple terms, the blockchain database is an incorruptible ledger stored by different users so that any unauthorized changes are not accepted.

The fact that the data cannot be tampered makes blockchain the perfect solution for an industry that stores sensitive data, and the legal industry is no different. In fact, blockchain could be coming to disrupt all sorts of ancillary industries that legal professionals need to deal with. For example, if blockchain is applied to real estate to store records on properties then it could impact everything from divorce cases and bankruptcy proceedings to murder trials.

Bringing law into the 21st century

When we think about lawyers and the legal profession, the temptation is to see it as an old-fashioned profession that’s so set in its ways that there’s no room for innovation. This stereotype simply isn’t true, which is why there’s already a Global Legal Blockchain Consortium that was established to promote the usage of blockchain within the legal industry.

If we pay close attention, there are all sorts of potential use cases for blockchain within the legal industry. Take, for example, the complicated concept of copyright law. Blockchain can make sure that artists are paid automatically when their tracks are streamed. Also, in criminal law, blockchain can be used to track the chain of custody when evidence is gathered and taken off for analysis.

You might have heard stories about evidence going missing or being accidentally destroyed. This can affect the result of a court case drastically. Using blockchain to store and to standardize all of this data could offer the same security as a paper trail but with less of the hassle. This is particularly true when it comes to digital evidence, such as browser records or digital documents.

Smarter contracts

No amount of disruption in the legal industry is likely to bring an end to its reliance on legal documents, from contracts between companies to written statements from witnesses and victims. But for a document to be binding, it needs to be signed and stored, a process which can take time and which is vulnerable to human error.

Blockchain technology has the capability of making the documentation process accessible and potentially even removing the need for a lawyer’s involvement in the first place. This just goes to show that not all change is necessarily good for individual lawyers, although it’s good for the industry as a whole. By automating these tasks, it frees up time to be spent elsewhere.

Besides, these contracts themselves may need legal oversight, and there’s a rapidly growing group of lawyers who are specializing in how local and international law applies to blockchains and the data that they gather. Along with artificial intelligence (AI), blockchain is one of the hottest topics on the lips of legal industry spectators and commentators.

Fewer disputes

Out of many advantages, one of the biggest advantages of using a blockchain-based system in real estate and the automotive industry is that it blockchain makes it easier to track the history of properties, vehicles, and buildings. You only have to look at how many cases go to court in which two neighbors dispute a property line or who has ownership of a parking space to see how a reliable digital ledger could be of use for the legal profession.

The technology could also give greater transparency on historic owners and property valuations. For example, in the real estate industry, it’s likely that every house will end up with its own record on the blockchain and that we’ll be able to see when it was built, how much it was sold for throughout the years and even the last time it had its boiler serviced.

This increased transparency will have implications for other criminal cases, too. For example, insurance fraud will become much more difficult because all of the data will be available in the blockchain. And because all of the data is available, companies will be able to analyze it on mass to look for anomalies.

One of the most important areas for the legal profession to focus on is the area of data and data protection, and blockchain technology makes that even more important. A blockchain based system provides a more open system that would make it easier to spot people who are breaking regulations. Imagine how much more we’d trust bankers if every banker had every trade they made logged and made available to everyone else – including to people who desperately want to catch them out. Fraud and insider trading would disappear virtually overnight.

For those in the legal profession, blockchain and its ramifications are likely to continue to be hot topics for the months and years to come.

Ultimately, we can conclude that blockchain is like any other technology. It has huge amounts of potential in various different sectors. One thing’s for certain, though. It’s one to watch.

How can blockchain technology’s application (rather than other technology solutions) revolutionize the banking and financial sectors?

Panaesha Capital Pte. LtdThe global financial system is one of the most popular sectors that could be benefited through the application of blockchain technology. Operating on the basis of highly dependent manual networks, the banking and finance sector is prone to errors and frauds that could lead to a crippled money-management system. According to Global Fintech Report 2017, 77% of fintech institutes expect to adopt blockchain technology as part of their production system or process by 2020.

According to a claim by the Harvard Business Review, blockchain technology will do to banks what the internet did to media. When it comes to banks and financial organizations of this day, blockchain technology has the potential to solve a lot of problems. Blockchain technology possesses all the attractive characteristics needed by a reliable technology involving money matters. It is safe, secure, decentralized, transparent as well as relatively cheaper.

Blockchain technology provides a very high level of safety and security when it comes to exchanging data, information, and money. It also allows users to take advantage of the transparent network infrastructure along with low operational costs with the aid of decentralization. These characteristics make blockchain technology reliable, promising and in-demand solution for the banking and finance industry.


Applications of Blockchain Technology


Fraud Reduction


A centralized database system is vulnerable and highly prone to cyber attacks as the single point of failure, such systems can be exploited by hackers. Once a hacker gets access to such a system, it is a child’s play for him/her to take the money. This leads to the need for more secure systems that are strong enough to avoid such attacks.

Enter blockchain technology, a secure, non-corruptible technology operating on a distributed database system. Since blockchain technology is distributed, there is no chance of a single point of failure. Each transaction is stored in the form of a block with a cryptographic mechanism which is extremely difficult to corrupt.

Know Your Customer (KYC)


According to a Thomson Reuters Survey, the overall estimated expenditure of AML and KYC processes ranges from $60 million to $500 million yearly. These customers due diligence regulations are performed in order to reduce the money laundering as well as terrorist activities.

With the adoption of blockchain technology, the duplication of efforts would be eliminated. Moreover, all the updates of clients’ will be to all financial institutions in near real-time. This would result in the reduction of administrative efforts as well as costs for compliance departments.

Smart Assets

A smart asset tracking system for the banks and financial institutes competing in the current times holds a lot of scope in the competition. A bank with a rich data set can turn this data into valuable information for its clients with the aid of blockchain technology.

Smart Contracts


A smart contract is a self-executable piece of code that runs when certain conditions written on it are completed. It is helpful in increasing the speed and simplifying complex processes. Smart contracts will also ensure the transfer of accurate information as the transaction will be approved only if all the written conditions of the code are met. Moreover, as these terms are visible to all the parties involved in the transactions, the chances of error at the time of execution are dropped drastically.

Trade finance


Trade finance is considered one of the most useful applications of blockchain technology in the banking sector. All the involved parties such as a complex transaction can be on-boarded on a blockchain network and the information can be shared by exporters, importers, and banks on one common distributed ledger. Once certain specified conditions of the deal are met, the smart contracts will automatically execute themselves and the respective parties can view all the actions performed.

According to sources, an Israel-based start-up along with Barclays have successfully executed a trade transaction that would normally take 7 to 10 days in just 4 hours using blockchain technology. When compared to the existing infrastructure, the use of blockchain technology can reduce costs dramatically relating to licensing, ticketing as well as other overhead charges.

Conclusion

Despite the strict jurisdictions around the banking sector, the financial institutions have started to realise the potential of blockchain technology seeing the popularity of cryptocurrencies in the current markets. The big giants in the banking sector have started conducting the tests for finding out the possible use cases of this decentralized technology for their business processes.

Moreover, some of the organizations are also investing heavily in such researches and tests conducted by startups to develop blockchain technology-based solutions. With blockchain technology entering the current scenario, a lot of problems could be solved while making the system more transparent, easy to access and reliable.

Panaesha Capital, incorporated in 7 countries and is expanding to another 20 countries, brings you the latest blockchain technology-based innovations.