As you probbly know, blockchain is a digital record-keeping method that has had its boom in popularity in the past few years after it was linked to the cryptocurrency craze. However, it is not to early to see the benefits of this technology and how it may change the world.
In an interview with CNBC, Martin Schroeter, an IBM executive said:
“If you bought IBM stock today, you would have to wait three days for that to clear because it has to go through its process,” Schroeter, IBM’s senior vice president of global markets, told “Mad Money” host Jim Cramer. “In a blockchain, … you can see every transaction instantly, so your trade could clear and go from their account to your account instantly.”
Still, blockchain is not all about trading. More importantly, it is not about cryptocurrencies. In its essence, it is a technology that will radicalize a lot of industries including manufacturing, shipping, freight forwarding and others, according to Schroeter.
The idea here is to make most of the $2 trillion global trade market and make the numerous logistical undertaking faster and more efficient.
As Schroeter said, “There’s no more paperwork and you know that it’s going to be cleared at a specific time,”. He even accented the value of blockchain for manufacturers and sellers, stating “Everyone has perfect visibility to where everything is. You’ve just shortened that cycle dramatically. That creates a lot of value, a lot of value for manufacturers and retailers.”
The third thing companies could benefit from regarding blockchain is its immutability or the inability to erase or reverse a transaction. Schroeter also accented this importance, pointing to the actual process:
“When you buy a share, the reason it takes three days [to process] is because somebody has a physical share. But the blockchain, it makes it so our blockchains are immutable. Nobody can go back and say that didn’t really happen,”
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