Could The Tech Behind Bitcoin Help Stabilize Oil Prices?
As the price of oil remains in the high-$40, low-$50 range, every cog in the oil industry is scrambling to reduce costs and streamline sales.
The oil industry has long been a leader in the adoption of different technologies. But, despite advancements made in recent years, even pushing breakeven costs to record lows, the industry is widely ignoring one of the most important developments of the century. Blockchain technology.
Blockchain tech – the “Buzzword of 2017” describing the “Internet in the 1990s” – is seeping into every major industry that it touches.
As we enter a whole new world in finance and technology, confidence and efficiencies in banking may be at an all-time low. Many financial institutions are scrambling to find solutions to reduce errors, speed up transactions, and provide greater transparency, which customers are demanding. This has led the financial sector toward the implementation of smart contracts and distributed ledgers. Blockchain is catching on so quickly, in fact, IBM expects 65 percent of major banks to be using blockchain technology in some fashion within the next 2 years.
Blockchain technology is already being used in bond transfers, remittances, fraud reduction, payment processes, and trading platforms. Transactions are processed quickly, safely, and with significantly greater security, saving banks millions in the process.
One of the largest impacts that this technology may have on the banking industry, however, is the “Know your customer” process in which banks identify their clients with the goal of preventing money laundering, corruption and terrorism. The financial sector spends anywhere between $60-million and $500-million each year to remain compliant with these regulations. Because a blockchain is public ledger, the transactions are more transparent, allowing information to be accessed more easily and without a long turn around.
These revelations have even led major governments to delve into blockchain technology.
In another recent study by IBM, 9 out of 10 government organizations have suggested that they will be using, or at least experimenting with blockchain technology by the year 2018. This new tech can be appropriated in astounding ways by governments. Distribution of social services, contract management, regulatory compliance, identity management, and even voting and tax collection stand to be impacted significantly.