Blockchain Technology: Investments and Risks. Part 2
Although initially developed as a platform for cryptocurrencies such as Bitcoin, more and more financial institutions and other industries are beginning to recognize the value of blockchain technology as a mean of allowing parties to enter into a wide range of transactions while reducing costs and hassle and increasing transparency. The potential of blockchain technology is only beginning to be utilized across a range of sectors as the industry begins to understand the range of benefits that can be obtained from doing business through the blockchain.
This post will discuss the recent rise of investment in blockchain technology, the potential risks related to such investments, and where we see blockchain technology going in the future.
Read Blockchain Technology: Investments and Risks. Part 1 >>>
Benefits of Blockchain Technology
However, despite the potential risks, most of which are common in a fledgling industry, the many benefits of blockchain technology means that its widespread adoption is inevitable. Some of the potential benefits of blockchain technology include huge savings in operational costs, increased efficiency in transactions and complete transparency in agreements.
In addition, the utilization of blockchain has the potential to provide for a trusted financial network to develop in emerging markets, something that has traditionally been elusive as a result of a reluctance of major financial institutions to invest in these markets, resulting in high costs to customers wishing to access their services. The use of blockchain would eliminate most of the costs and delays traditionally associated with banking in emerging markets as well as offering businesses operating in these markets with a level of comfort of receiving payment for their services far in excess of what currently exists.
For small and medium enterprises (SMEs), which traditionally would not have access to public stock exchange networks or formalised credit structures, the benefits of blockchain technology is that they can utilise the technology to access affordable funding schemes through syndicated lending, allowing for lenders to offer lower interest rates and also allowing the SME to avoid the often onerous banking requirements.
Future of Blockchain Technology
Although there are some risks associated with investing in the blockchain industry and reluctance in some industries to embrace the technology, it is clear that the number of companies actively working on developing their own blockchain technology is growing. There are clearly significant opportunities for start-ups and it is certain that, with the current level of investment, many of the innovations currently being developed by blockchain start-ups will become commonplace and necessary for the society of the future.
Although blockchain has long been associated with cryptocurrency, especially Bitcoin, it may soon be possible for individuals and companies alike to have every agreement and every transaction that they enter to be identified, validated and shared, making intermediaries like lawyers, governmental departments or brokers unnecessary. However, although this is the immense potential of blockchain, the more immediate future is to allow blockchain technology to be accessible to everybody. Similar to the effect that web browsers had on the internet, the challenge that is currently facing blockchain developers and companies is how to ensure that blockchain becomes an accessible and common feature in all of our lives.
WishFinance
WishFinance is an innovative cutting-edge technology start-up company aiming to bring an alternative option to the traditional lending industry. We are creating the first lending platform with transparent portfolio performance on the blockchain. By investing with WishFinance, investors can track investments and SME activities as well as keeping an eye on the accountability of their investments in near real-time.
WishFinance operates using data analytics software which can evaluate and process hundreds of loan applications within minutes. In addition to provide an extra layer of assurance to investors, WishFinance has implemented an escrow mechanism integrating its software with point of sale (POS) terminals to ensure automatic repayments from POS transactions.
Innovative technology built on the decentralized ledger helps us build a transparent tool for investors and at the same time promote global development of the economy through supporting small and medium-sized businesses, that traditionally suffer from the lack of capital.
After the ICO campaign, holders of WISH tokens can receive a share of company profits as dividends.
