Blockchain & its potential for crafting future Strategic Partnerships

It has been over a decade since technology stakeholders across the world have become familiar with a concept called #Blockchain technology. That was when Satoshi Nakamoto published Bitcoin’s whitepaper and introduce distributed ledger technology (#DLT) which was the beginning of transformation across many industries. So far, we have been observed various use-cases but on top of all what we are going to cover in this essay is Decentralized Finance (commonly referred to as #Defi).

Cryptocurrencies, which have been on top of the financial news for years now, promises to democratize accessibility to money and payments. However, Defi goes even further than that and introduces and opens doors to the decentralized application (#dAPP) in the financial services industry where you potentially can have access to all alternative financial apps and tools that you are using today e.g. payment, saving, trading, loan, insurance and more. Such technology is currently available via smart contract - a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of codes (@investopedia). What makes these smart contracts more interesting than cryptocurrencies is that give developers the chance to build far more professional/useful functionalities and use-cases just limited to their creativity. 

As an example of a Blockchain technology use case, we can name a project that has been conducted by CashOnLedger which provides a regulatory compliant solution for programmable money. The project has been done for Linder Traktoren, a traditional yet innovative manufacturing firm with more than 70 yrs experience in the market. The automated rental (pay-per-use) and billing process which has been developed by implication of smart contracts made Linder Traktoren clients save up to 25% of the rental fees.  

All-in-all such use-cases among all are the best proof of concept to show how Blockchain technology can successfully contribute to the existing business models and make them more efficient by focusing on the core functionalities, improving current performance, and reducing costs. This piece aimed to briefly cover Defi as a blockchain-based form of finance that does not rely on central finance and pinpointing the win-win scenario that DLT offers to various industries, e.g. the financial services industries.

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