Blockchain In Growth Economies
Blockchain is gaining traction and disrupting growth economies at an increasing rate. Not only is it being touted as a possible solution to endemic and institutionalized corruption, but it is also gaining acceptance in important industries, especially financial services, healthcare and government.
Blockchain first gained traction in growth economies as the technology behind Bitcoin, the first digital currency. However, experts soon recognized that blockchain’s transparency and security features could significantly change the financial services industry—much as the Internet changed the media and entertainment industries 20 years ago. Banking institutions across the globe are adopting blockchain and advanced distributed ledger technologies for a wide range of functions, including trade settlements, payment processing and cross-border transactions. In fact, India recently launched India Trade Connect, a trade finance strategy that uses blockchain platforms to empower an unprecedented collaboration between IT juggernaut InfoSys and seven of the nation’s biggest banks.1 Modern blockchain technologies allow these financial entities to streamline trade finance systems and oversee international supply chain transactions at every step of the operation.
The global healthcare industry manages vast amounts of clinical and administrative data, from the pharmaceutical supply chain to patient medical records to claims management. The introduction of smart medical devices including everything from personal fitness trackers to connected surgical suites, is introducing an entirely new ecosystem of information to mine. The pool of data collected from healthcare-related devices is growing exponentially. Accurate, accessible data is critical to improving clinical outcomes and reducing waste, and blockchain’s immutability and ability to connect currently siloed information and serve as the “single source of truth” are key enablers. In South Korea, the healthcare industry has been very proactive in implementing blockchain to centralize patient information and marginalize the prevalence of counterfeit drugs through transparent supply chain management. Blockchain records of patients’ medical histories provide Korean hospitals and caregivers with a single, accurate record of a patient’s treatments, procedures and pharmaceutical needs.2
Governments in growth economies around the world are using blockchains for everything from property records and voting registries to driver’s licenses and financial histories. Its ability to provide a chronological and immutable digital record makes it ideal for transactions that impact populations and economies—from single individuals to entire industries. Blockchain increasingly allows governments in Africa to better organize records and services through improved identity management systems—which legitimizes processes key to successful societies, from collecting taxes to counting votes.3 For many growing nations, blockchain may soon offer the potential to leapfrog from antiquated and bloated operational processes, fraught with malfeasance, to streamlined, incorruptible systems that attract international investment and encourage entrepreneurship. Blockchain is gaining rapid acceptance with businesses and policymakers in part because the continent doesn’t have deeply entrenched incumbents or legacy systems that might resist this new technology in an effort to maintain their influence.