Blockchain’s “humble” beginnings
Blockchain has been in financial headlines since 2008 with the launch of the now revolutionary cryptocurrency, bitcoin. Once people realized that the underlying technology that operated bitcoin could support other types of transactions and services, it started a wave of experimentation and predications in which blockchain technology would begin to revolutionize the financial Industry. However, we are still waiting on that revolution.
Blockchain technology today
Blockchain technology and strategy have gone through several phases over the last 10 years. New ways of utilizing blockchain include smart contracts, proof of stake and blockchain scaling. These new strategies have seen some very real use cases across the globe. For example, in Ghana, the company Bitland is looking to solve land dispute problems by registering lands in a public blockchain ledger, thereby circumventing a corrupt and inefficient government.
Despite the value of other industry use cases, the financial industry has not undergone major real-world deployments. Due to compliance, security concerns and a lack of pressure from competition in the space, the urgency to tackle blockchain does not exist for banks, credit unions and investment firms.
Where the established players in the overall financial industry are being cautious, FinTech and startups are taking the lead. Utilizing cloud technology, they are making major advancements within blockchain and pushing the envelope on where blockchain can go.
This does not mean that the industry leaders cannot move ahead. With blockchain still early in its development, there is plenty of room for established financial institutions to experiment and research how blockchain can create frictionless transactions.
With blockchain experiments still happening, we are several years away from creating major shakeups within the financial services industry. However, financial institutions should not wait. It is an excellent time to begin developing and experimenting with the technology and how it could ultimately benefit their organizations. In fact, according to PwC, 36 percent of financial services executives say their organization will make significant investments in the technology over the next three years. If you are not looking into how this technology can improve your business model, it may soon be too late.
No matter how you utilize blockchain, you should consider three essential technology pillars: power, security and storage. If even one of these is missing it can mean failed projects, harmful data breaches or costly delays.
At Flexential, we provide these pillars to power your blockchain technology. Our solutions are people-powered, as our dedicated teams treat your infrastructure as if it is our own. Flexential has a full suite of solutions that enable blockchain technology, which includes:
- More than 40 data centers nationwide with scalable power density to meet your colocation needs
- 100Gbps network backbone and IP bandwidth with DDoS scrubbing included
- Full security suite from front end (web application firewall) to backend (encryption-as-a-service)
- Cloud solutions: storage, private cloud, public cloud and direct-connect to leading public cloud providers like AWS, Azure and Google Cloud Platform