INTERNET OF BLOCKCHAINS: The Future of Blockchain Industry

Blockchain the – immutable, encrypted, decentralized – account has a capacity of making every centralized process, activity, and institutes fully independent. This means we can eliminate middlemen, government, and churn. Therefore, streamlining every business, governance and non-profit activity. While this sounds astounding it is yet a faraway dream despite everything we are still attempting to make genuine moves. In the midst of all the developments circulating around blockchain, there is a lot of confusion about the future of this technology.

With blockchain peer-to-Peer (P2P) technology we are moving into a new digital generation that has the capacity to change finance as we know it. The future of finance could be without banks but with transactions approved automatically in seconds or minutes, thereby reducing price and expanding efficiency.

Of all the captivating new technologies that have surfaced in recent years in the financial service department, the best option for being a real game changer is the technology that enables decentralized cryptocurrencies, known as “blockchain”. The first and most popular of these currencies is Bitcoin, which appeared in 2009.

All Bitcoin transactions are carried out peer-to-peer and thus outside the control of any central entity, whether commercial or governmental. This lack of oversight has made Bitcoin a famous means for buying contraband drugs and weapons on the dark web, especially on sites such as the bad and now defunct Silk Road.

The original intercessors for Bitcoin were libertarians and cyber-anarchists, people who chose it solely because it removed the need for banks or other middlemen. Few envisioned in the early days that blockchain, the technology underpinning Bitcoin, could have usefulness in conventional financial services.

2015 welcomed huge interest in blockchain technology. Over 1 billion USD was invested in Fintech startups that could potentially distort the big financial activist with services such as bank transfers and peer-to-peer loans.

Blockchain technology also captured the attention of the big activist themselves, and it became a topic of discussion in Roland Berger’s digitization initiatives like Terra Numerata.

A survey carried out by some experts in the digitization prospects in Switzerland found that crypto-technologies and blockchain had the third greatest influence in digitization in coming years, after wealth management and security/digital identity services. Yet those interviewed revealed that they were uncertain in the direction that the technology would take. “We really have no idea what this whole thing is going to turn into,” the director of the MIT Media Lab disclosed.

On the one hand, it has the ability to increase gain by introducing greater automation into bank transfers, thus delivering more efficient service – a report suggests savings of up to USD 20 billion a year for banks – while on the other hand, “the ability to process transactions directly between parties… is risky to traditional banking.”

Transaction costs are reduced, typically free for the recipient and only a few cents for the sender. In essence you only need a computer software: a bank account is no longer required.

The importance of blockchain technology goes higher beyond currency exchanges. It could be repurposed for any system where maintaining public data in a decentralized manner is useful. Plans are under development to introduce it on stock exchanges, to initiate automatic contracts that would be important to the insurance industry, and it has been proposed for maintaining land registries.

Some predict that blockchain has the ability to disrupt all centralized Internet systems; it could be used to obtain, authenticate and forward any kind of information in the Internet of things. Blockchain technology may also create the backbone for machine learning and true artificial intelligence.

Bitcoin’s early volatility as a currency, and its adaptation in the popular mind with illegal and fringe Internet movements, distracted from the basic importance of cryptocurrencies based on blockchain. We are entering the future of where blockchain networks work more like the internet. The future of blockchain will not be one network working independently, but rather an interconnected network of multiple blockchains. This will allow diverse networks work together to create a scalable, truly global, and evolving blockchain layer of the internet.

Dubai envisions to become world’s first blockchain powered government

Dubai is a land where nothing is impossible. This time the city is aspiring to become the first blockchain city, where most of the emirate’s businesses will operate using blockchain technology. The city underwent radical shift in embracing bitcoin blockchain technology in the recent times. Since then, Dubai has embraced technology and continues the trend to become world’s first blockchain powered government by 2020. Adoption of distributed ledger technology will save 5.5 billion dirhams annually spent on the documentation alone- a value worth of one Burj Khalifa every year.

Technology centre of the Middle East

Dubai claims to be a major business hub of the middle east owing to its investor friendly taxation and business policies, advanced infrastructure, and secure politico-economic environment. It now aspires to become technology centre of the middle east by implementing blockchain technology at the government level. Blockchain technology can be used to track business information, records of which are verifiable, immutable, and secure. It has potential to speed up transactions, increase transparency and reduce instances of frauds and money laundering.

Government entities realize the need to have secure and shared ledger for greater transparency and accountability of business processes. Majority of emirate’s business are using distributed ledger technology to provide efficient services as well as to attract foreign business investments.

Smart Dubai Blockchain Strategy

His Highness Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai launched the Dubai Blockchain Strategy. It is a collaboration between the Smart Dubai Office and the Dubai Future Foundation to explore and evaluate the latest technology innovations that delivers seamless, safe, efficient, and impactful city experiences.

Smart Dubai is a public-private citywide effort to implement blockchain in government, semi-government, and private organizations. This initiative aims to identify businesses where blockchain can be successfully implemented. It aims to conduct workshops to educate the public and private sectors to initiate blockchain pilot projects collaboratively. Smart Dubai plans to build a shared platform – Blockchain as a Service (BaaS) for government entities to track progress of such blockchain pilot projects. Smart Dubai has recently appointed IBM as its strategic partner and Consensys as software development consultancy and blockchain adviser.

Early technology adopters

Dubai government entity, Department of Economic Development looks after business registration and licensing services in the region. It facilitates setting up businesses, issue commercial license and protect rights of businesses and consumers in the region. The department is in process of shifting all its operations to blockchain.

Emirates NBD, Dubai’s largest bank collaborates with IBM and other business entities to explore blockchain technology applications in trade finance and logistics. The bank experiments to prevent instances of fraud and boost the authenticity and transparency of financial transactions.

Export import businesses through ports and free zones aims to substitute paper based contracts with blockchain based smart contracts, which will reduce cost of documentation, shipping, tracking and supply of goods.

ArabianChain, Arab world’s first public blockchain aims at shifting inter-governmental paperwork on blockchain. It plays an important role in shaping future of blockchain in the middle east. ArabianChain and DubaiCoin (DBIX) will lead the way for cryptocurrency and alternative investment opportunities in this region.

Early technology agreements

ICICI Bank, India’s largest private bank and Emirates NBD partnered to accomplish the first cross border transaction in international trade finance and remittances using blockchain technology. This technology allows banks to have access to single source of information in real time.

The Dubai Financial Services Authority (DFSA) and the Securities and Futures Commission (SFC), Hong Kong entered into agreement for fintech cooperation to encourage startups in MENA and East Asian markets. This fintech accelerator will connect startups with a network of regional and international financial leaders such as the Abu Dhabi Islamic Bank, HSBC, VISA, etc.

Dubai government recently entered into agreement with UK based blockchain startup ObjectTech to create digital passports for entry at Dubai International Airport. It aims to replace manual passport verification and create the world’s first gate-less border. The growing optimism and enthusiasm of Dubai government implementing citywide blockchain payments will soon make it the world’s first blockchain powered city.