Emilio Castellote, senior analyst at IDC Research Spain, explained that blockchain is interesting for the banking sector because it allows entities to improve the security of transactions. Their traceability and the ease with which to clarify things in case of research on movements . That is why it is estimated that of those 568 million, 34.5 percent will come from that sector.
The appearance of the fintech changed something
The analyst also said that, although the bank initially resisted embracing technological innovations for fear of compromising the safety of its customers, with the appearance of the fintech changed something forever in the sector.
Castellote specified this technology can prevent a banking process from being hacked by an intermediary. And can be applied in the stock market to follow the processes that artificial intelligence has carried out and finally serves to justify its balance of assets in the event of an audit.
Second, it is believed that the manufacturing industry will be another sector interested in blockchain technology in Europe, with 18.2 percent of the total.
Here Castellote highlighted that from the smallest screw to the most complex piece, in case of problems you can see the entire route of the component, check its warranty or when it should be revised.
Retail will be in third place as another sector that will invest most in blockchain in 2019 with 6.7 percent of the total.
What is Blockchain?
The most basic definition of Blockchain or chain of blocks is, it is a shared and digitized record that can not be modified once a transaction has been registered and verified.
All parties to the transaction, as well as a significant number of third parties, maintain a copy of the record i.e, the blockchain. Which means that it would be virtually impossible to modify each copy of the record globally to falsify a transaction.
According to estimates of the World Economic Forum, by 2027, ten percent of global GDP will be stored in blockchain technology.
Blockchain allows registering any transaction or movement with security, which provides transparency and increases the confidence of the different participants in the processes in which this innovation intervenes. The information also quoted the enterprise software firm SAP, according to which the use of blockchain is being explored in industries and activities that go beyond finance.
Among the examples of sectors that are using blockchain, one could cite pharmaceutical companies, supermarkets, and even national states.
The security that is offered in the products that are followed through a chain of blocks makes customers consider the added value of the products as something for which they are willing to pay.
It is estimated that customers who see added value to the products they consume show 80 percent more loyalty with transparent brands and some are willing to pay more due to the quality offered in the products.
Also published on Medium.