The Future of Block Chain with Technology and Financial Companies

The Future of Block Chain with Technology and Financial Companies
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The Future of Block Chain with Technology and Financial Companies
Introduction
Technology has taken the lead as a platform to create utility through peer to peer economies or efficiency through timeless transactions. The leading global firms today are internet based or significantly affiliated with a technology mogul. Wald (2018) posits that before the evolution of business models after the potential of the internet was realized, the global leaders in the hospitality industry and retailing were Hilton, Marriott, and InterContinental; Walmart and CVS respectively. However, as the reliance on the internet as a business, social and innovation platform has grown exponentially over the last decade, leading to Airbnb and Amazon being valued among the leading firms in hotel service and retail.
Today, Blockchain has joined the great innovation in technology. Iansiti and Lakhani (2017) and Pierro, 2017, define Blockchain as a regulatory platform for digital economies. Al-Saqaf and Seidler, (2017) explain that Blockchain attributes transactions, establishes organizes, and identifies entities chronologically. Kim, Laskowski, and Nan (2018) and Ducas and Wilner, 2017 articulate that the regulatory framework of the online economy has come before transformation to online economies. Yeoh (2017) discusses that the well-organized regulatory mechanism is an imperative innovation essential for innovations. Webb (2017) and Peterson (2018) establish that the Chinese lead competitor of Alibaba in E-commerce, jd.com, launched their Blockchain accelerator for food products, which will help consumers track their foods to the production farm. The objective of the initiative is to improve safety and food tracking in China. Sandler (2018) identifies that the Blockchain was launched in collaboration with Walmart, a retail partner.
How Blockchain Works
Iansiti and Lakhani (2017) in the 2017 Harvard Business Review, preview the utility, growth, functioning and the evolution of Blockchain. Blockchain work through a network of databases and where the entire history of transactions is recorded. However, while the standard database system requires an administrator to oversee the management, Blockchain does not need a central authority. Communication on Blockchain is achieved through peer to peer nodes (Iansiti & Lakhani, 2017). Unlike custom systems where a central node is used for transmission during communication, each peer node stores and forwards information. The system also ensures anonymity through Pseudonyms. The users have a unique 30-character alphanumeric address that identifies them (Iansiti & Lakhani, 2017). Every node user or entity on a Blockchain can access all the transactions and the value transacted. Transactions are made between the address of the nodes, hence anonymity does not present any challenges (Iansiti & Lakhani, 2017).
Another core trade-off of Blockchain is that once a transaction is executed, they are irreversible. There is no way of deleting the transaction. After the completion of the transactions, they are added to the chain of the records that preceded them. The algorithms deployed in the system ensure transactions are chronologically ordered, permanently recorded in the database and available to all people on the network which contributes to the transparency (Iansiti & Lakhani, 2017; Yeoh, 2017). Being a digital platform, the computational nature makes it possible for Blockchain transactions to be automated.
The boom of the bitcoin in early 2018 led the growth in the popularity of Blockchain. The increase in awareness of the use of Blockchain is informed by the necessity for a secure platform to trade different digital currencies that were emerging, with the most dominant being Bitcoin (Peterson, 2018). Blockchain as a decentralized protocol, guarantees safe transfer and transaction of digital assets by providing a record which cannot be manipulated and access among other users (Kim, Laskowski & Nan, 2018; Ducas & Wilner, 2017). While in normal transactions one receives a receipt for the transaction, an online transaction can be confirmed through digital certificates, which are issued on the platform. Confirmation certificates are only issued when the transaction is legiti...