Last year in September, Barclays carried out the very first transaction using the blockchain
technology. A process which usually takes 6 to 7 days to be completed was conducted in less
than 4 hours. Approximately 80% of the banks are now working to develop their own blockchain
technology because the wonders being done by it.
Other big names like IBM and Nasdaq are also in action to come up with solutions for easier and
quicker transactions. The biggest value point of blockchain is that it eliminates the involvement
of third parties and establishes vague trust between the two strangers. Just like blockchain is
replacing middlemen, is it going to extinguish the need for human capital too in near future?
Why Has Blockchain become a Rage?
Throughout the history of the world, there are both winners and losers whenever a paradigm
shift takes place. Today, the cryptocurrency market is worth a mind-boggling 100 billion dollars
or even more than that. Each startup is already relying on blockchain to push trustworthiness
and transparency in the digital ecosystem and to lure more investors.
The blockchain technology enables companies working in the accounting and supply chain
management etc. to carry out permanent decentralized transactions. It has the tendency to
eliminate the human error and to perform any given task in a limited time. There are no delays
or additional costs involved and the distributed ledger allows making the authentication of
various transactions easier too.
Not just finance, businesses belonging to different niches including healthcare, real estate, and
even food are trying to figure out how blockchain can help them in achieving their goals faster.
People are actively looking for talent in the blockchain space with the number of postings
regarding such skills being trebled on LinkedIn in the past year.
Are Humans Ready to Embrace Disruption?
With the penetration of blockchain in different industries, there are high chances of human
capital being compromised but are humans ready to accept this disruption? A survey was
conducted by the Chartered Institute of Management Accountants (CIMA) and Thomson
Reuters that revealed that only 4% of the accountants considered blockchain to be disruptive for
their industry. They fail to realize that blockchain is imposing more threat than machine learning
Former CFO of J. P. Morgan’s Investment Bank and CEO of Digital Asset Holdings, Blythe
Masters, says, “You should be taking this technology as seriously as you should have been taking
the development of the internet in the early 1990s.”
The Bottom Line
The ultimate dilemma of this situation is that blockchain is ready to become a ground source for
all the businesses just like the internet is today. Not incorporating it means that the businesses
will be lagging behind and including it will eventually decrease the need for human capital
making it obsolete.
Even a startup like CannaSOS which aims to become a comprehensive advertising and social
network platform for the cannabis industry is relying on this technology to discover wide
horizons. They are able to achieve their goals and targets related to bringing flexibility to the
regulations regarding cannabis industry. Through their Pre-ICO, they are already gaining a lot of
investors and people who believe in their cause.
Despite the possible threats imposed by the blockchain technology, it is here to stay and take
the world by storm.
This post is part of our contributor series. It is written and published independently of TNW.