Cryptocurrency technology is among the most disruptive technologies of the 21st century. Today, many industries from all sectors are generously embracing cryptocurrency and its underlying technology, blockchain, to change the course of their operations.
The crypto world has moved from just being an ecosystem that can only be spoken by and understood by tech maniacs. Today, cryptocurrency is a force that is powering technologies used for day-to-day operations, from secure healthcare data to intelligent devices being used at home.
The more you look at how crypto technology is being used, the more you get to understand that it is more than just an investment. It is about reshaping how people view and use technology.
Financial services have truly been revolutionized
Cryptocurrencies are the new face of the financial sector, and there is no denying it. It’s not a mistake that Yi He, the Binance co-founder, states that “Crypto isn’t just the future of finance, it’s already reshaping the system, one day at a time.”
With crypto, cross-border payments have become faster and cheaper. No more dealing with complex exchange rates and huge transaction costs whenever you want to send or receive money internationally. Also, you don’t have to wait for days so that your transactions are complete.
Interestingly, financial institutions have been embracing crypto and leveraging blockchain to streamline their operations as well as reduce costs. A good example is JPMorgan Chase, which came up with Kynexys, a blockchain-based platform that allows for real-time settlement of interbank transactions. Now that’s a revolution!
Supply chain management is becoming more transparent
The global supply chain markets have been growing rather complex in recent years. This is due to the fact that they involve numerous stakeholders, trade restrictions, dynamic market conditions and going through a number of international borders. In fact, Deloitte reported that 71% of US CEOs were planning to alter their supply chains within the next three to five years, one of the reasons being trade uncertainties. Also, a PwC study showed that 77% of executives reported being negatively affected by compliance complexity.
All these complexities create challenges in tracking products, maintaining transparency and ensuring that the supply chains remain authentic. And that’s where blockchain technology comes in.
Blockchain technology provides a solution for these challenges by creating an immutable record of how the product travels from the origin to the consumers. Whatever happens during the journey is recorded on the blockchain, and all authorized parties can see what is happening. With blockchain technology, you are assured of:
- Product traceability, because you can track products from their raw material stage until consumer delivery.
- Prevention of counterfeit products, since you can verify the product’s authenticity throughout the chain.
- Quality assurance as you monitor compliance with quality standards.
- Quickly identifying and addressing product issues, leading to efficient recalls.
Major retailers like Walmart have already integrated blockchain tech into their food supply chains. This has made it easy for them to pinpoint where contamination might potentially happen since they can correctly trace the origin of produce.
Crypto is changing the real estate industry game
The real estate industry can be quite complex, especially when it comes to paperwork and the numerous intermediaries. But now, cryptocurrencies have come to change the game.
For example, Christie’s International Real Estate, one of the US largest luxury brokerages, recently started a division that allows buyers to purchase real estate using digital currency. This firm has incorporated a team of crypto experts, lawyers and analysts to ensure the dream hits home.
But how exactly is the crypto changing the real estate scene?
The speed remains top-notch!
From making purchases to sealing agreements, crypto and blockchain technology are simplifying and securing transactions in the real estate industry. For instance, in 2021, a penthouse in Miami was sold entirely in crypto, a deal that was sealed in less than 10 days.
If you know real estate, then you will know that this transaction was almost instant. For real estate agreements, the deals take between a few weeks and months in order to seal off such a huge deal.
Security at its best
When operating through crypto, security and transparency are unmatched. In an era where cybersecurity and fraud have become the biggest issues in many industries, it’s vital that you work with something that gives you assurance.
In a statement, the Global Head of FIU at Binance, Nils Andersen-Röed, stated that, “Despite advanced privacy tools, every crypto transaction leaves a trace – a crucial asset for modern law enforcement. As crypto crime grows more complex, global cooperation and strong public-private partnerships are not optional, but essential.” This is important for the day-to-day operations of the real estate industry. The traceability makes the transactions within the industry more secure.
Tokenization is running the show
Tokenization in the real estate industry has become a big thing. Data by Deloitte revealed that the value of tokenized private real estate funds is expected to grow to over $1 trillion by 2035. According to Binance, the rising adoption of tokenized assets positions leading protocols to benefit from growing institutional demand. And this is exactly what is happening in the real estate world.
Right now, it has become so easy for anyone to own real estate. You don’t need to have millions, just enough money to purchase a small portion of tokenized real estate. According to the founder of Sabai Ecoverse, Vadym Bukhkalov, tokenization has helped increase transparency, streamline processes and reduce market barriers in the real estate sector. Now anyone can be an owner, not just a chosen few.
With all these things happening, it’s right to say that crypto is the future of many industries. Statistics and data have consistently proven that crypto is not just a passing fad; it is here to stay. And as it stays, it sure is disrupting the normal day-to-day operations as people know them.
