This week, we look at the blockchain technology and how it has penetrated across multiple sectors including the smart cities, utilities, telecommunications, transport and banking.
Over the past decade, significant investments have been made in research and development, testing and implementation of blockchain in multiple sectors.
Penetration of blockchain
Despite heavy investments towards blockchain, not much is spoken of the technology being deployed at full scale.
The majority of blockchain services are being offered as managed at pilot scale and with limited revenue.
However, Technavio forecasts adoption in the banking, financial services and insurance sectors to increase 63% by 2022.
Government exploration of blockchain for national currencies continue to increase at a global scale, according to Technavio. Replacement of paper or national currencies with blockchain is expected to increase the penetration of the technology across all sectors.
Use as national currencies is expected to improve the efficiency of services offered, as well as create new revenue streams in various sectors.
Blockchain technology & energy industry
Frost & Sullivan has recently identified five application opportunities for blockchain in the US digital grid and the impact it will have on utilities operations.
The research company says there is a huge market for blockchain as a billing platform, in international energy trading, electric vehicles and V2Gs, for customer engagement and as a platform for peer to peer trading and renewable energy certification.
The technology is expected to help countries meet renewable energy targets, improve reliability and efficiency of grids and reduce utilities capital expenditure on clean energy generation
Naren Pasupalati, Energy & Environment Senior Research Analyst at Frost & Sullivan, said revenue generation and use of blockchain has probability to escalate as a result of increases in use of 5G networks, transactive energy and microgrids.
Utilities interest in the technology has been increasing, evidenced by their investments in blockchain startups.
British multinational utility giant Centrica partnered with Braemar Energy to invest in blockchain firm LO3. The technology being invested in allows centralised storage and data processing regarding consumer onsite energy generation, storage and trading.
Tokyo Electric Power Power Company has shown its interests by investing in the Energy Web Foundation, non-profit organisation established to accelerate the commercial deployment of blockchain technology in the energy industry.
Moreover, continued emergence of solution providers is an evidence of the potential the market has.
Smart cities and data telemetry
This week, OpenCryptoTrust (OpenCT), a new blockchain company for the global telecommunications sector has launched.
Mayande Walker, CEO of OpenCT, said: “Throughout the world, data transmission, digital communication and the transferring of data from point A to point B are key functions and the lifeline that gives most, if not all, businesses and industries the ability to prosper and exist,”
“OpenCT will provide a new process, innovate conveyance and offer an effective solution to those who have challenges with costly connectivity giving the entire telco community an option for secure, peer-to-peer financial transactions without the use of any third party or financial institutions.”
The company’s blockchain platform will comprise an OpenCT Token, Proof of stake (PoS) and Proof of Duration (PoD) systems.
The PoD algorithm will be used together with the PoS to help miners of the OpenCT Token to mine at a faster rate, more democratic and energy efficient manner.
The solution company says the block production rate will work at a rate of 100,000 transactions per second.
The Bank of China has filed a proposal with the Intellectual Property Office to implement a blockchain solution which would allow compression of transactional data.
The technology would in the event it receives a compression request from a client, compress data in multiple blocks into a single block.
Looking at the market for blockchain technologies, one would agree research and development and testing is concentrated in developed economies.
It is obvious full scale rollouts will begin in developed countries before expanding to less developed economies, a well known trend as far as new technology adoption is concerned.
Are developing economies like Africa and the Middle East ready for blockchains?
Will developers of blockchain quickly address cybersecurity issues associated with the technology?
Where do you see the market heading in the next five and ten years ahead?
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