Blockchain may have a bigger impact than the internet, say IT leaders

With its features of cryptography, distributed sharing and decentralization of data, blockchain technology is rapidly impacting business operations across the world. Although its impact is yet to be seen, IT leaders are extremely optimistic about the technology, touting it to have a bigger impact than what Internet had back in the 90s.

“We are getting into a phase where blockchain would have a higher impact than internet had on our industry in the 90s. We are seeing blockchain in day-to-day operations and also in software development. Real-time transfer of funds without the intermediary, preventing duplication or manipulation of data provides a strong use case for the financial sector. I think the PNB fraud case could have been easily prevented using blockchain,” told Sheenam Ohrie, VP, Enterprise Data & Mobility Engineering, Dell during an event in Bangalore. 

Smart contracts

One of the most effective use case of blockchain are smart contracts which are extremely useful for all sectors, believe experts. Smart contracts give entities the ability to share any value-based asset or transaction without a middleman. Unlike a normal contract, the rules and obligations of a smart contract are executed automatically which can be of great use for organizations relying on condition-based exchange of information.

“Another strong use case is smart contracts which can be very useful for sectors such as manufacturing, banking, finance, insurance and logistics to automatically execute transactions in a secure manner in each step of the contract. When you have a transaction that can only go through with the consensus of all members in a network, it enhances the security and integrity of data,” said Ohrie. 

Decentralized applications

IT leaders believe millions of software applications today will be strengthened using blockchain. Unlike a centralized network, decentralized apps will be distributed across thousands of nodes which prevents tampering of app data, speed up transactions and lead to far better network security. This is a critical feature lacking in today’s infrastructure, where most networks are centralized and can be brought down by attackers.

“We will see decentralized applications and smart contracts on public and private blockchains, which will be extremely helpful for companies in coming times,” says Chris Zhong, Cloud Solution Architect, Microsoft. “In addition to that, we will see a decentralized marketplace where data can be safely exchanged and monetized. Blockchain will directly impact data-centric sectors like insurance, banking, healthcare and all industries based on supply chains,” added Zhong.