Every day there is more news about what can, may and should happen in the world of cryptocurrencies (CC’s) and blockchain. A lot has been invested, researched and talked about, but the coins and projects are still not mainstream. They haven’t yet delivered the explosive changes they’re aiming for. Many ideas are discussed and developed, but none have yielded major breakthrough results. What may be required is that major industry players like IBM, Microsoft, and the big financial services companies continue to drive the development of useful blockchain applications—ones that the whole world CANNOT live without.
Financial services are a ripe target for blockchain projects as today’s banking systems are still based on archaic ideas that have been painstakingly and painstakingly digitized, and because these systems are archaic they are expensive to maintain and operate. Banks have almost a good reason for charging the high service fees – their systems are not efficient. These systems have many layers of redundant data because everyone involved in a transaction needs to have their version of the transaction details. And then ensuring there is a trusted third party handling all of those transactions – which requires even more versions of the same data. Blockchain technology promises to address these issues as each transaction is recorded in just ONE block on the chain and as it is a distributed database security and integrity are built in and guaranteed. It may take time to build trust in these new systems as blockchain transaction verifiers are not the traditional clearinghouses that banks use and trust today. Banks’ trust in a new technology will take time, and it will take even longer for that trust to reach consumers.
Another company that may soon be ready to give CCs and blockchain a big boost is Amazon. It looks like Amazon is preparing to launch its own cryptocurrency. This is a company with revenues the size of a large country and they are able to issue a digital token that would be fully convertible with other CCs and also with fiat currencies. A step like this would allow Amazon to:
- (AMAZON) Spend coins to reward and encourage developers on any of its platforms
- Issue coins to consumers to use for in-app purchases
- Issuing coins to players for purchasing in-game virtual treats
- issue coins to regular customers as part of a loyalty program
Amazon may have the ideal ecosystem of customers and partners to make all of this possible. They have about 300 million customer accounts worldwide, roughly the population of the US, and they have 100,000 sellers on their platforms with millions of items for sale. There are few companies more established than Amazon, with a massive, vibrant economy all tied to it. Amazon’s upcoming entry into the world of CCs could signal large-scale adoption of blockchain technology by mainstream institutions. What could be right around the corner when an AMAZON coin comes into play is a DISNEY coin, a DELTA AIRLINES coin, a CARNIVAL CRUISES coin, a HOME DEPOT coin – you get the idea.