The biggest companies that might be disrupted by blockchain technology are among the leaders in their respective industries. In fact, blockchain technology is not viewed as a disruptor to individual companies, but to whole industries. As blockchain technology evolves and is embraced by many big companies like Microsoft Corporation (NASDAQ:MSFT), International Business Machines Corp. (NYSE:IBM), which are adapting to new technology and releasing new products such as Blockchain-as-a-Service, experts are assessing what is next for blockchain and how it can help or disrupt the way companies in other industries are doing things.
Blockchain technology was introduced in 2009 with the release of Bitcoin and while the masses are focused on the hype surrounding the price growth of Bitcoin and other alternative cryptocurrencies, the impact of blockchain technology on many industries receives relatively less coverage. However, the surge in the value of cryptocurrencies is most likely a temporary thing, but blockchain is the technology of the future and it is here to stay. It is probably one of the reasons why many corporations are reluctant to accept Bitcoin and other cryptocurrencies as a payment method for their products, but are focusing a lot of efforts to develop blockchain-based applications that could improve business processes.
Blockchain is the underlying distributed ledger technology that represents the base of cryptocurrencies. The ledger is publicly-available and transaparent and contains information related to all transactions in a digital, decentralized and secure way. Blockchain ensures that transactions between parties are effected in a secure way without the involvement of third parties. It represents a continuously expanding list of records (blocks), which are connected and secured with cryptography. All records are available to everybody and are not kept on a single server, but are saved in a network. Because of these features, but also because blockchain is highly reliable and transactions are irrevocable, many companies are interested in embracing the technology in its early stages, thus becoming disruptors, rather than disrupted.
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Currently the most popular use of blockchain technology is in the financial sector, with most large banks in the world developing some sort of blockchain technology for international transfer of money. Last year, Barclays PLC (ADR) (NYSE:BCS) managed to conduct the first trade transaction using blockchain technology. Other industries are also catching up, with startups emerging in the healthcare, real estate, supply chain, internet of things and other industries. Earlier this year, large companies, including Microsoft Corporation, JPMorgan Chase & Co. (NYSE:JPM), Accenture Plc (NYSE:ACN), Intel Corporation (NASDAQ:INTC), and BP plc (ADR) (NYSE:BP) teamed up with various universities, startups and research groups, and created the Enterprise Ethereum Alliance, which seeks to develop blockchain-based solutions for the corporate world based on the Ethereum network.
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Having said that, let’s take a look at five biggest companies that might be disrupted by blockchain technology. The companies in the list were selected from various industries, which are most likely to be among the first to be disrupted by blockchain technology and are already seeing some trends in this area.
5. AvalonBay Communities Inc (NYSE:AVB)
AvalonBay Communities Inc (NYSE:AVB) is one of the largest residential REITs in the US and thus is poised to become among many real estate companies that will be disrupted by the blockchain technology. Real estate is not limited to just owning and managing real estate, but it also involves a lot of transactions between owners and tenants as well as a lot of records that have to be kept. Blockchain technology can ensure secure transactions and a easy way to transfer documents and property deeds. As a start, the industry is already seeing some blockchain-based solutions, such as Ubitquity, which is a blockchain-powered platform for real estate record keeping and deeds transfer, which allows an easy way to trace a property’s ownership history due to the immutability of the blockchain.
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4. Visa Inc (NYSE:V)
Visa Inc (NYSE:V) is affected by the ascension of cryptocurrencies as more merchants adopt Bitcoin, Litecoin and other currencies as a form of payment, although the value of transactions conducted through cryptocurrencies is very small. Cryptocurrencies are considered very reliable forms of payment, especially in online commerce and it has many advantages over paying with a credit card. However, blockchain is also likely to disrupt the whole payment processing industry as it offers a better way to transfer money, particularly oversee. Visa Inc (NYSE:V) has taken notice of the technology and is developing “Visa B2B Connect”, which seeks to ensure fast bank-to-bank and corporate transfers involving high amounts of money.
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3. Spotify
As one of the largest music-streaming platforms, Spotify is also likely to be among the biggest companies that might be disrupted by blockchain technology. Blockchain can offer artists the possibility to get paid directly by their fans, thus eliminating middleman like record companies or platforms. In addition, smart contracts can secure artists against illegal downloads and solve licensing issues. Moreover, blockchain can create a global record-keeping system that stores information about artists and their engagement with audiences, thus making sure that artists are not misrepresented.
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2. United Parcel Service, Inc. (NYSE:UPS)
Logistics and supply chain management is a very complex business, which involves many moving parts, requires a lot of precision and is prone to many human errors. Blockchain technology can eliminate many of these issues as transactions are documented and stored in a ledger that is secure and cannot be modified in any way. In addition, it can control costs, labor, waste, origin of products and/or parts, and other aspects at every point of the supply chain or delivery process. Blockchain will provide a lot of help in automating deliveries and supply chain management. United Parcel Service, Inc. (NYSE:UPS) has recently joined the Blockchain in Trucking Alliance (BiTA), alongside C.H. Robinson Worldwide Inc (NASDAQ:CHRW) and XPO Logistics Inc (NYSE:XPO). BiTA is a platform that aims to enable the use of blockchain technology in logistics and supply chain management in order to ensure more efficient deliveries.
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1. JPMorgan Chase & Co. (NYSE:JPM)
As the largest bank in the US, JPMorgan Chase & Co. (NYSE:JPM) stands to be one of the largest companies that might be disrupted by blockchain technology. In addition, as a bank, JPMorgan Chase & Co. (NYSE:JPM) is at the forefront of the blockchain technology evolution as financial companies are the first to embrace technology and seeking ways to use it to their benefit. As stated previously, JPMorgan Chase & Co. (NYSE:JPM) is part of the Enterprise Ethereum Alliance. In addition, in October JPMorgan launched a new payment processing network in partnership with Royal Bank of Canada (NYSE:RY) and Australia and New Zealand Banking Group. The Interbank Information Network is based on blockchain and allows payments to be transferred faster, with fewer steps and provides better security.
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These are five biggest companies that might be disrupted by blockchain technology. There are many more companies that might be disrupted by blockchain, especially the industry peers of the five companies mentioned in this list. Moreover, the list of industries itself is much larger as blockchain might also disrupt a lot of other processes in the healthcare, education and even government and voting sectors.
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