Every couple of decades a new form of technology emerges from niche tech circles to mainstream implementations and is usually coupled with a community that firmly believes in the innovation setting a new benchmark in the world. Not advances survive, but those that do, set the ball rolling for new economic movements as the disruption is accompanied with innovative products, cutting-edge applications, and widespread job creation.
Blockchain to Play a “Big Role” in Traditional Sectors
Echoing the sentiment is Federated Investors’ Steve Chiavarone, a Wall Street trader, who believes that the rise of blockchain technology will play a “big role” in driving economic growth. Despite the tech still largely in an “emerging” state, Chiavarone sees the blockchain powering supply chain industries and administrative functions, among many others.
Speaking on CNBC’s Trading Nation, Chiavarone said:
“This is going to be one of five key technologies — along with automation, robotics, A.I. [artificial intelligence] and the Internet of things that drive this next industrial revolution.”
Although the crypto-industry’s pioneer currency bitcoin struggles to break $10,000, after touching approximately $20,000 in December 2017, Chiavarone maintains an overall bullish view of the market and is undeterred by the current bearish sentiment.
While the reason for naming the tech-giants was not mentioned, Chiavarone may indeed be on the right track with these thoughts. Facebook also announced on May 9, 2018, their intentions to implement blockchain technology in the company, appointing David Marcus, who previously worked on Messenger is on the board of Coinbase, as head of the blockchain team.
Industries Largely Interested in Blockchain Technology
Chiavarone adds that interest from institutional players is undeniably high, and to most, bitcoin is the first gateway to the blockchain and cryptocurrency domain. The trader mentioned Bank of America in particular as a major investor in the space, citing the organization’s “boast” at Davos about their blockchain inclination.
To many, the luster of blockchain technology for the financial sector is understandable, as it enables account verification, instant remittances, and immutable records. To others, blockchain marks the advent of a fourth industrial revolution, coming after manufacturing lines and the internet, as the technology is regarded as foundational rather than exclusively disruptive.
Results of a public vote on CBNC validate these thoughts, as a majority of readers voted “yes” to “Do you see blockchain technology helping corporate America?”
In conclusion, Chiavarone states:
“It has an ability to replace reconciliation, which is expensive and requires back office and time and paperwork with more instantaneous verification. And, that will allow business to flow more efficiently and it’ll allow costs to be cut and net savings to be passed along.”