How is Blockchain Technology Used in Customs and ICT Services?

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Matthew Kaufmann HackerNoon profile pictureMatthew Kaufmann HackerNoon profile picture

Matthew Kaufmann

Tech savvy and Linux user 🐧

The financial industry has shown an increasing interest in blockchain technology. The technology came to the fore when it was used to trade cryptocurrencies like Bitcoin, which is generated and authenticated by a peer-to-peer network of users rather than a central authority.

Blockchain technology has already seen adoption by major players in traditional finance:

  • According to Goldman Sachs, blockchain technology could save $2-4 billion in insurance brokerage transaction costs and $11-12 billion in securities clearing and settlement expenses in the United States alone.
  • According to a study by Santander, blockchain technology could save banks $15-20 billion in infrastructure expenses related to cross-border payments and securities trading.
  • The World Economic Forum predicts that up to 10% of the global Gross Domestic Product (GDP) value will be secured using blockchain technology by 2027.

Various financial institutions have produced blockchain-based solutions in various fields. They have yet to demonstrate that blockchain technology is a long-term solution to meet the demands of traditional financial companies.

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For example:

  • The Australian Stock Exchange has partnered with Digital Assets to use blockchain technology for clearing and settlement of stock transactions.
  • Overstock.com launches closed system trading platform for selling proprietary blockchain

The growing number of traditional financial institutions adopting blockchain technology demonstrates the financial industry’s widespread belief that this technology can provide a wide range of benefits. Despite this, many in the industry believe that the implementation of blockchain technology will be a slow, step-by-step process rather than a big bang revolution.

Indeed, market players may be hesitant to write off their current technology investments quickly. As a result, market players may prioritize areas where the highest efficiency can be achieved.

As market players continue to investigate, it’s unclear whether the emphasis will be on trade or post trade. As many of the inefficiencies can be addressed here, blockchain technology can be placed first in post-trade transactions for both exchange-traded securities and some derivatives.

However, there are other traditional industries where blockchain technology can be useful, such as information technology. Consider a company that makes components for the vehicle industry. It wants robust and secure communication along with minimal latency between its sites. The client’s planning and design is supported by a diverse chain of wholesale agreements that includes the communications provider, other carriers, and local loop participants.

The company’s IT managers are not interested in this information as they only receive a final invoice that reflects the total cost. On the other hand, invoicing and payments is a complex and time-consuming procedure for carriers, with hundreds of contracts due each month and thousands of other services to follow.

These are issues that can be resolved by using automated smart contracts to securely obtain the right data to create smart B2B contracts.

Many market-oriented projects are now working to promote common blockchain protocols and standards. The HyperLedger Linux Foundation and the R3 Consortium are just a few examples of blockchain-related organizations working on blockchain-based solutions. As a result, compatibility challenges do not seem to be an obstacle for this technology.

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Continuing with the information technology industry, data services can also benefit from the application of blockchain technology. Data Services is a major revenue generator for ICTs and the industry is transitioning to on-demand services.

These changes aim to increase the capabilities available to businesses by providing faster deployment of new sites, services, and applications worldwide, as well as simpler updates and formatting of existing services, and improved security.

The emergence of new distribution architectures such as SD-WAN, SASE, and others has also impacted changing operational practices. ICT providers can fulfill orders in an automated marketplace environment, significantly reducing the time and effort required today. A blockchain-based partner ecosystem enables them to serve a wider range of business categories, increasing ICT revenue.

Blockchain technology can create tools to enable ICTs to securely execute orders for automated data services. The company’s technology supports expanding industry demands for optimization needs by automating the alignment of data service inventories and invoices among partners, inventory search and co-locations.

In closing…

Many repetitive business procedures already can be reduced in a blockchain-based system as there are fewer middlemen. Transaction data will no longer need to be entered separately at each step of the custody chain, requiring expensive reconciliation procedures.

As a result, transaction costs can be reduced. As a result of the reduced back-office expenses associated with manual reconciliation of conflicting transaction data, blockchain technology can save the financial industry a significant amount of money.


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The financial industry has shown an increasing interest in blockchain technology. The technology came to the fore when it was used to trade cryptocurrencies like Bitcoin, which is generated and authenticated by a peer-to-peer network of users rather than a central authority.

Blockchain technology has already seen adoption by major players in traditional finance:

  • According to Goldman Sachs, blockchain technology could save $2-4 billion in insurance brokerage transaction costs and $11-12 billion in securities clearing and settlement expenses in the United States alone.
  • According to a study by Santander, blockchain technology could save banks $15-20 billion in infrastructure expenses related to cross-border payments and securities trading.
  • The World Economic Forum predicts that up to 10% of the global Gross Domestic Product (GDP) value will be secured using blockchain technology by 2027.

Various financial institutions have produced blockchain-based solutions in various fields. They have yet to demonstrate that blockchain technology is a long-term solution to meet the demands of traditional financial companies.

picturepicture

For example:

  • The Australian Stock Exchange has partnered with Digital Assets to use blockchain technology for clearing and settlement of stock transactions.
  • Overstock.com launches closed system trading platform for selling proprietary blockchain

The growing number of traditional financial institutions adopting blockchain technology demonstrates the financial industry’s widespread belief that this technology can provide a wide range of benefits. Despite this, many in the industry believe that the implementation of blockchain technology will be a slow, step-by-step process rather than a big bang revolution.

Indeed, market players may be hesitant to write off their current technology investments quickly. As a result, market players may prioritize areas where the highest efficiency can be achieved.

As market players continue to investigate, it’s unclear whether the emphasis will be on trade or post trade. As many of the inefficiencies can be addressed here, blockchain technology can be placed first in post-trade transactions for both exchange-traded securities and some derivatives.

However, there are other traditional industries where blockchain technology can be useful, such as information technology. Consider a company that makes components for the vehicle industry. It wants robust and secure communication along with minimal latency between its sites. The client’s planning and design is supported by a diverse chain of wholesale agreements that includes the communications provider, other carriers, and local loop participants.

The company’s IT managers are not interested in this information as they only receive a final invoice that reflects the total cost. On the other hand, invoicing and payments is a complex and time-consuming procedure for carriers, with hundreds of contracts due each month and thousands of other services to follow.

These are issues that can be resolved by using automated smart contracts to securely obtain the right data to create smart B2B contracts.

Many market-oriented projects are now working to promote common blockchain protocols and standards. The HyperLedger Linux Foundation and the R3 Consortium are just a few examples of blockchain-related organizations working on blockchain-based solutions. As a result, compatibility challenges do not seem to be an obstacle for this technology.

picturepicture

Continuing with the information technology industry, data services can also benefit from the application of blockchain technology. Data Services is a major revenue generator for ICTs and the industry is transitioning to on-demand services.

These changes aim to increase the capabilities available to businesses by providing faster deployment of new sites, services, and applications worldwide, as well as simpler updates and formatting of existing services, and improved security.

The emergence of new distribution architectures such as SD-WAN, SASE, and others has also impacted changing operational practices. ICT providers can fulfill orders in an automated marketplace environment, significantly reducing the time and effort required today. A blockchain-based partner ecosystem enables them to serve a wider range of business categories, increasing ICT revenue.

Blockchain technology can create tools to enable ICTs to securely execute orders for automated data services. The company’s technology supports expanding industry demands for optimization needs by automating the alignment of data service inventories and invoices among partners, inventory search and co-locations.

In closing…

Many repetitive business procedures already can be reduced in a blockchain-based system as there are fewer middlemen. Transaction data will no longer need to be entered separately at each step of the custody chain, requiring expensive reconciliation procedures.

As a result, transaction costs can be reduced. As a result of the reduced back-office expenses associated with manual reconciliation of conflicting transaction data, blockchain technology can save the financial industry a significant amount of money.

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