8 predictions about blockchain technology by Chinese research institute

31 Jul, 2018
by Matthew Kim
News
8 predictions about blockchain technology by Chinese research institute

According to 8BTC, The China Academy of Information and Communications Technology (CAICT) released a report titled “the Financial Blockchain Research Report” today. In the report, the scientific research institute outlines 8 findings on blockchain technology’s potential effect on the financial industry.

Here are the 8 conclusions from their research:

1. Blockchain technology will have a positive impact on the financial system.

The technology will make the financial market more efficient and simultaneously reduce the size of the indirect financial market by decentralizing the functions and ridding the intermediaries.

2. Blockchain technology will greatly impact the eventual central bank digital currency and its circulation mechanism.

Eventually, state-backed digital currencies will emerge, and blockchain technology will remain the backbone of the new generation of currencies.

3. Blockchain technology will revolutionize cross-border remittances and large transactions.

The technology will bring improvement for these areas with superior efficiency, stability, transparency, and flexibility

4. Supply chain industry will be transformed by blockchain technology

Blockchain technology will enable streamlined tracking of products through the hands of multiple entities. Smart contracts will ensure automatic and seamless information transference.

5. Blockchain technology will eventually be utilized in stock trading.

6. Blockchain technology will be vital to the future of insurance.

Blockchain’s advantage in openness and transparency will force insurance companies to utilize the emerging technology. In an industry in which transparency is key, blockchain will offer a unprecedented solution.

7. Credit data sharing and trading platforms will integrate blockchain technology.

The technology will reduce risks and costs.

8. Institutions utilizing blockchain technology will experience regulatory challenges.

Because the blockchain technology is a young but quickly growing industry, regulations will struggle to keep up with the adoption. Thus, businesses using blockchain-based applications will undoubtedly encounter regulatory uncertainty.

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