The Blockchain could be at the origin of “the fourth industrial revolution” and constitute a break as important as that of the Internet, according to its promoters. Born with Bitcoin, this technology of storage and transmission of information, in the form of a kind of large digital distributed register, is of interest to many industrial players. Investments in “blockchain” based solutions are still modest, even though they are expected to double to $11.7 billion globally by 2022, according to estimates by US firm IDC.$11.7 billion will be invested in Blockchain Technology before 2022! Click To Tweet
The current spending on Blockchain solutions in 2018 comes primarily from the financial sector, which is expected to invest $552 million this year, or 36 percent of the total, “largely due to rapid adoption in the banking sector,” says IDC.
The potential use cases of Blockchain are numerous in the financial sector:
Use Case 1: Credit Agricole has been testing Ripple which is primarily aimed at banks and promises to improve international remittances by speeding up their transaction processes and reducing their fees. The bank primarily will focus on the transfer of salaries in Swiss francs from its 90,000 cross-border customers working in Switzerland. Also, Kuwait Finance House (KFH) which is one of the largest banks in Kuwait, opened under Sharia law has adopted Ripple’s ecosystem.
Use Case 2: UBS moves from one blockchain consortium to another. The Swiss banking group has joined We.trade as shareholder and user bank. This is a platform to facilitate financial transactions for international merchandise trading. UBS was previously part of the Batavia consortium, a blockchain project with objectives similar to those of we.trade initiated by the Swiss bank alongside banks Bank of Montreal (BMO), Caixabank, Commerzbank and Erste Group. CaixaBank, Erste Group and UBS have decided to join We.trade and its other partner banks. Namely Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe Generale and UniCredit.
Like the Batavia fire project, We.trade is based on the IBM Blockchain Platform built around the Hyperledger Fabric protocol. The first banks invested in We.trade say they have identified significant product and technology synergies with the banks that have collaborated in Batavia.
Successfully launched in production last June 2017, We.trade is described by its initiators as the world’s largest blockchain platform for the financial settlement of cross-border business transactions. This platform provides customers of partner and user banks with access to a simple interface, taking advantage of the intelligent contract features enabled by the blockchain protocol of Hyperledger Fabric.
Use Case 3: For people, Stellar makes it possible to transfer money (Euros, Dollars, Yen and more) to another person, in any currency (currency or crypto-active). The payment infrastructure runs on a blockchain and allows for a transaction in 2 to 5 seconds. Because the fees are tiny, less than a dime, it becomes possible to make micro-payments, cross-border, with local payment operators, and at a lesser price. Some examples are the clic.world application used in Africa, Coins.ph in the Philippines and Anclax in Columbia use the Stellar network.