Blockchain, the new technology that all [fin]tech-heads are seemingly talking about, provides a new way of storing and transferring data through a secure, distributed network of computers. This distributed ledger technology keeps track of all the changes ever made to it, virtually eliminating the possibility of fraud and providing unparalleled transparency. These two factors create inviolable trust between the opposite parties in a transaction and does so without the need for an expensive third party. It is this inherent feature of trust that makes blockchain a radical disruptor of FinTech and P2P applications.
Blockchain technology disrupts many traditional industries by offering a faster, cheaper, more secure, and more effective transactions between peers. What used to require expensive intermediaries or third-parties can be now carried out easily through blockchain thanks to the implementation of smart contracts.
Smart contracts are the idea behind the so-called blockchain 2.0 concept. They represent a covenant between two parties which is written and secured using a programming language. The contracts are automatically executed as soon as the specified triggers are pulled.
This dramatically reduces the need for third-party moderation throughout a broad range of different industries. Hence, blockchain’s disruptive capacity for the P2P economy, and FinTech in general.
A Few Examples
While, in theory, any industry can benefit from blockchain technologies, there are certain fields which can be positively, even radically transformed.
- Money Transfer
Having to send a certain amount of money to a distant relative halfway across the world is a situation that many of us are familiar with. The process takes an uncomfortable amount of time and imposes annoying fees for a task that should be simple: sending money to another person.
Blockchain technology takes away all the hurdles when it comes to transferring money. Parties are now able to send funds without having to use the services of third-party intermediaries (banks or other financial services providers) at little to no cost and in little to no time.
And as mentioned above, the blockchain keeps a record of all transactions, which allows users to be completely certain of the movements of their money.
- Transportation & Logistics
Blockchain technologies can also dramatically empower the transportation and logistics industries. The technology is already being picked up by traditional institutions in the field, including major players like Maersk and Walmart. In Australia, for example, the Commonwealth Bank recently shipped 17 tons of almonds using blockchain technology.
This enabled them to track important factors such as the cargo’s current location, temperature, and humidity within the containers, and other values in real time.
- Insurance Payments
Blockchain technology can also reduce the costs of operating P2P insurance networks. This is because it has the potential to increase transparency, cut down administrative costs, and reduce fraud.
What’s AERUM’s Role in All This?
Blockchain technology, despite its undeniable disruptive potential, is still quite new, and relatively untested in real-world applications. Much of the reason for this is that the majority of existing networks are unable to support the number of transactions needed to cater to the requirements of widespread public and enterprise-grade adoption.
Take Ethereum, for example – the industry leader in terms of deployed solutions. It can currently handle only 20 transactions per second. When it comes to enterprise applications on a global scale, it goes without saying that this is not nearly fast enough to be a practical, day-to-day solution.
This is where AERUM comes in, as a reliable and fast blockchain platform which is free for the end user. It is still 100% compatible with Ethereum while offering 25x better throughput.
The network provides on-demand scalability from 500 to 100,000 transactions per seconds depending on the needs of the application. It has a modern and comprehensive consensus mechanism, as well as a mobile, web, and desktop multi wallet which connects AERUM to Ethereum thanks to petal chains and Atomic Swaps.
AERUM is the leading solution capable of fulfilling the true disruptive potential of blockchain technology, which itself has already started to transform the P2P economy.
What do you think of blockchain’s disruptive potential? Don’t hesitate to let us know in the comments below!