Mar 18 2019
Blockchain in the Financial Sector: Today and Tomorrow
What is blockchain? It is a distributed database that contains information about transactions carried out by system participants. Its main feature is the exclusion of the human factor which ensures a high level of trust. Today retail and investment banks, brokerage firms, and payment networks actively use this technology. Payment transactions now can be automated, which means intermediaries can be excluded while any system participant verifies the authenticity of a transaction. Additionally, blockchain could help in securities management, and it could be used in the development of payment systems using digital currencies, which would greatly simplify the interaction between central banks.
The main opportunities blockchain opens up in the financial sector are reducing bureaucratic costs, minimizing corruption, increasing security of operations through complex mathematical algorithms and special cryptographic programs, and eliminating unnecessary or redundant operations.
Blockchain is based on the principle "promised — fulfilled” and a violation of this principle is impossible. Due to the fact that the entered data cannot be changed, blockchain becomes an effective financial tool. Additional benefit from implementing blockchain solutions is trust in the information and reliability of its storage, which is especially valuable in the financial sector. Blockchain for financial market participants is not only a path to new niches, but also a step towards new market relations based on the transparency and impossibility of cheating. Even if certain blockchain developments do not replace all their standard counterparts, they still provide an overall opportunity for improvement in this sector.
International payments are still the main and most widely recognized implementation of blockchain in the financial sector. Such technology allows payments to be made in seconds, with minimal costs. Unlike plastic debit cards and SWIFT transfers, blockchain services automate currency control procedures and search for the most profitable transaction route. Over 200 companies are already connected to the payment ecosystem Ripple, among them banks and even the international money transfer service Western Union. The speed of settlements in turn accelerates international trade and makes financial transactions available to ordinary citizens. And for a number of large companies and entire countries, blockchain payments allow the opening of additional business channels.
In fact, the reason why blockchain is still very popular, but not the most used technology, is quite simple. There is the possibility that it is a technology fad that will fade in fintech, similar to what happened with WiMax. The wireless data transmission technology did not become widespread, and LTE replaced it.
Blockchain also has a successor—Tangle, a faster technology that is designed based on the widespread use of the Internet of Things. It is possible that blockchain in its current technological form will not become widespread in the financial sector, and other solutions will be applied for safe data storage.
Blockchain in the Financial Sector of Tomorrow
In the coming years, the spread of blockchain technology will most likely be relevant in the field of financial systems and insurance. Experts believe that the first thing to do is to implement blockchain in all publicly verifiable transactions, contracts, registries and decision-making systems, secondarily, in multilateral operations. At the same time, the introduction of blockchain in projects where control is required for unstructured, unparsed information is not justified.
For example, banks invest too many resources in support of processes that aren’t directly linked to profits, so fintech is focused on finding new tools to influence fundamental indicators. Blockchain could become a cheap solution for banks.
If we talk about the disadvantages associated with this technology, it is necessary to highlight the market demand for experts in this field as well as a small number of completed business cases. Financial institutions are very cautious about the introduction of blockchain projects. For fintech, the risks associated with deficiencies in consensus algorithms and incorrectly written code of smart contracts could be quite expensive. During a bank transfer it is possible to dispute the transaction, but for the time being, it is not clear how to implement such a process in blockchain.
It is worth mentioning the data protection issues as well. Blockchain has been around for about 10 years, and data protection is one of the most pressing issues in this area. Entrusting finance to algorithms, financial organizations want to make sure that they are reliably protected from various types of attacks such as capturing decentralized nodes or selecting a cryptographic key.
Security and standardization issues are other problems hindering the implementation of blockchain in finance. Today, many countries have almost no regulatory legislation that would allow blockchain to be widely used in banks, when dealing with securities or registering transactions. Therefore, the future of blockchain in finance largely depends on legislators and regulators.
Mar 11 2019
When Will the Internet of Things Become the Internet of Anything?
For technologies to be in demand by businesses, they must have a significant impact on the economy. An effective competitive strategy is to reduce costs by automating business processes. Two years ago, it was expected that there would be a revolutionary breakthrough in the area of IoT. Today, IoT is mainly used to automate logistics and track production processes. With the development of NB-IoT, new mobile sensors and devices are likely to appear, which will not be as dependent on network settings as they are now.
Those who believe that a technical revolution should take place in IoT are both right and wrong at the same time. The Internet of Things itself is a logical step in the evolution of information and communication technologies, a continuation of the logic of the automated process control system and M2M, but at a qualitatively different level. The principle of “internetization” of interaction, transferred from the regular Internet to “things” or devices, has opened up new companies, new business processes, and new business models to the world. Using the Internet of Things, artificial intelligence systems, machine learning, augmented and virtual reality in solutions and products – this is the daily technical revolution. Moreover, we often no longer notice how commonplace “connected” or “smart” things have become in the last couple of years. Barriers in yards are now opened not by duty assistants, but via a phone call. Payment information can be accessed in a few strokes on a smartphone. The temperature of a room can be changed remotely via an app. Such examples are endless. This means that the next “revolutionary” change - the transition to the “Internet of Anything,” IoA, could easily be overlooked in the future.
In developed countries, the IoT technology is no longer an innovation, moving from the innovative to everyday solutions. The most advanced developments are concentrated primarily in the industries where IoT and algorithmization can bring the effect of instant savings and fast monetization, and the industry itself is large in size. For example, agriculture or transport and logistics are full of innovations that affect ordinary people. At the same time, today there is already a question not about the creation of innovation, but its implementation on a large scale. Much of what is needed for the widespread change of established operations and actions is already there, but these technologies need to be integrated and implemented.
Evolution of LoRaWAN
The Internet of Things has evolved from the technology of the automated enterprise management system that has existed since the last century. Such costly automated enterprise management systems are currently available only to large corporations. The evolution in the design of sensors and actuators, the emergence of new communication standards and communication channels, machine-to-machine interaction, the emergence of software for connecting this infrastructure to existing systems, and other technologies, all have enriched automated enterprise management systems and made automation accessible to a large number of enterprises.
IoT is now developing, although not as fast as previously expected. Innovations occur regularly, but they are often subtle. One of the most significant breakthroughs is the distribution of LoRaWAN data transfer protocol among IoT devices. Low power consumption of LoRaWAN devices and a large communication range allow sensors and equipment to be installed in places where wires cannot be laid. For example, the infrastructure of IoT devices could be deployed even in a forest — say, for warning of forest fires.
The development of LoRaWAN networks with low power consumption of end user devices will allow IoT to become a truly Internet of Things. The presence of a publicly accessible “transmission medium” opens up the possibility for integrators and solution providers to focus directly on the hardware level (field level) and application level. As a result, the number of IoT devices themselves and the volume of processed data - archived and current - would significantly increase. Then, application of cloud computing resources, Big Data, machine learning, and neural networks at the application and services level will become more common.
The following were mentioned in the Forrester Reseach study ( published report) “10 IoT predictions for 2018” and are noteworthy. Among other things, the use of voice control systems in IoT services will increase; developers of IoT platforms, as well as those who provide services to them, will go further towards industrial or functional specialization; Blockchain technologies will be increasingly used in IoT products, and—the most troubling—cyber attacks through various “connected” devices will be among the most common and destructive.
What’s next: success or failure?
According to Software AG, about 50% of projects related to IoT fail because developers are more interested in releasing new solutions to the market that they simply do not assess possible risk factors.
Now the situation has begun to change. More and more technologies have been developed to interact with IoT. These are, above all, cryptocurrency projects. In the near future, they are expected to grow in number, and in five years, the automation of various business processes will be able to be discussed. According to expert Theo Hildjard, three stages will be completed in implementing the Internet of Things. During the first stage, individual projects that have not reached their optimum will be improved. At the second stage, the integration of all processes will be planned, in other words - digital optimization. Only at the last stage will it be possible to fully implement all the developments, create new “Internet things,” and expand the market.
We can assume that the revolution in IoT is actually taking place, it is just happening in the area of business solutions. In the consumer solutions market, IoT has hardly been developed. But within the framework of the industrial Internet of Things, the range of requests is much more diverse. The probability is high that automation in production will turn IoT into IoA.
Company information Artezio
Artezio delivers cost effective, high quality IT services to companies in the US, the United Kingdom, Germany, Switzerland, Japan, Austria, and CIS.
In addition to custom software development, Artezio continually invests in R&D activities and develops its own products:Software as a Service platform solutions.
Mobile apps for iOS, Android
Desktop and tablet products
Artezio assists its clients in analyzing and automating their business processes, as well as provides software solutions to achieve their operational goals:
Rapid automation solutions implementation
Getting software products to markets faster
Porting and implementing web-enabled software from scratch, etc.
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Key figures Artezio
Deputy MD/Chief Operating Officer (COO)
- Service provider
Other classifications (for some countries)
NAICS (US 2012) :
Custom Computer Programming Services (541511)
SIC (US 1987) :
Computer Programming Services (7371)
Blockchain in the Financial Sector: Today and Tomorrow