MNGT361 Emerging Technology Essay 3

Blockchain

November 4, 2022

Blockchain

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 Blockchain is a decentralized, immutable database that makes it easier to track assets and

record transactions in a corporate network. On a blockchain network, practically anything of

value may be recorded and traded, lowering risk, and increasing efficiency for all parties (IBM).

To discuss the importance of blockchain, a business runs on information. It is best if it is

received quickly and is accurate. Blockchain is the best technology for delivering that

information because it offers real-time, shareable, and entirely transparent data that is kept on an

immutable ledger and accessible exclusively to members of a permissioned network. Among

other things, a blockchain network can track orders, payments, accounts, and production.

Additionally, because everyone has access to the same version of the truth, you can see every

aspect of a transaction from beginning to end, increasing your confidence and opening up new

prospects (IBM) (101blockchains, 2018).

To discuss an industry that is impacted by blockchain, I would like to talk about the

banking and financial services industry. Transaction, loan, mortgage, and payment services are

all part of core banking. Many of these services rely on older execution techniques. For example,

it takes 30 to 60 days for individuals to acquire a mortgage and 60 to 90 days for small and

medium-sized businesses to secure a business loan between information verification, credit

scoring, loan processing, and disbursement of money (CBInsights, 2022). Blockchain has the

potential to improve banking and lending services by reducing counterparty risk and shortening

issuance and settlement times. Firstly, blockchain supports authenticated documentation and

KYC/AML data, lowering operational risks and enabling real-time financial document

verification. Secondly, it enables streamlined credit prediction and credit scoring markets, which

are informed instantly by the collection of user behavior and sanctioned data across a network.

Furthermore, it generates automated syndicate formation, underwriting, and disbursement of

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funds such as principal and interest payments, resulting in lower costs, as well as reduced

syndication delay and friction. Furthermore, blockchain facilitates asset collateralization since

digitization enables real-time asset management, tracking, and regulatory control enforcement

(ConsenSys) (CBInsights, 2022).

In term of my present career plans, working in the retail industry, I believe that the retail

industry uses blockchain in addressing the challenges of the new normal. Blockchain is being

used by retailers and businesses to provide creative solutions that provide direct proof of

sustainability to consumers and develop trust in their products. And they are collaborating with

manufacturers, distributors, shippers, and other retail supply chain partners to tackle a wide range

of business issues that lie between raw materials and finished goods on retailer shelves (IBM).

Moreover, in term of future career plans, blockchain definitely plays a role in the finance

industry. I plan to pursue a risk management internship at Morgan Stanley in the upcoming

summer break to gain professional experience in the finance industry. One of the biggest benefits

of blockchain is that it helps manage risk, thus, blockchain would play an important role in my

upcoming and future career plans; what I need to do now to prepare for my future career plans is

to educate myself on blockchain and potentially take an IT course in order to excel in the risk

management internship.

In conclusion, blockchain is getting bigger in every industry. Blockchain enables a

significant change from the traditional Internet of information and communications to the

Internet of Value, ensuring the building of trust between strangers through the use of blockchain

technology. This simple yet revolutionary advantage is expected to bring about significant

developments. Assets may be exchanged promptly and effectively without the use of

intermediaries when trust is incorporated into the systems. Furthermore, a Deloitte Global

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Blockchain Survey stated that 2019 was a defining moment for blockchain when business

executives understood that blockchain is for real and that it can serve as a pragmatic solution to

business problems across industries and use cases. That is, when blockchain has finally entered

the mainstream of business applications, these executives saw a change away from "blockchain

tourism" and investigation and toward the development of real commercial applications.

Blockchain ensures trust, transparency, and disintermediation, in addition to providing additional

security for Internet transactions.

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 References

101Blockchains. (2018, November 9). Blockchain Fundamentals Presentation [Introduction To

Blockchain]. Retrieved from https://101blockchains.com/blockchain-fundamentals-

presentation/

CBInsights. (2022, October 18). How Blockchain Could Disrupt Banking. Retrieved from

https://www.cbinsights.com/research/blockchain-disrupting-banking/#:~:text=Blockchain

%20technology%20provides%20a%20way,the%20need%20for%20a%20bank.

ConsenSys, How does blockchain impact banking and lending? (n.d.). Retrieved from

ConsenSys: https://consensys.net/blockchain-use-cases/finance/

IBM, Blockchain in retail solutions? . (n.d.). Retrieved from IBM:

https://www.ibm.com/blockchain/industries/retail

IBM, What is blockchain technology? . (n.d.). Retrieved from IBM:

https://www.ibm.com/topics/what-is-blockchain

Makridakis, S., & Christodoulou, K. (2019). Blockchain: Current Challenges and Future

Prospects/Applications. Future Internet, 11(12), 258. Retrieved from MDPI:

https://www.mdpi.com/1999-5903/11/12/258