Every day there is more news about what can, can and should happen in the world of Crypto Currencies (CC) and Blockchain. There has been significant investment, research and much talk, but the coins and projects are not yet mainstream. They have not yet delivered the expected explosive changes. Many ideas are discussed and developed, but none have yielded major game-changing results. What may be needed is for major industry players such as IBM, Microsoft and major financial services corporations to continue to move forward with the development of useful Blockchain applications that the entire world CANNOT live without.
Financial services are a ripe target for Blockchain projects because today’s banking systems are still based on outdated ideas that have been faithfully and painfully digitized, and because these systems are outdated, they are expensive to maintain and operate. Banks have almost a good reason to charge the high service fees they do. their systems are not efficient. These systems have many layers of redundant data, as everyone involved in a transaction must have their own version of the transaction details. And then there’s the business of ensuring there’s a trusted third party to clear all these transactions, requiring even more versions of the same data. Blockchain technology promises to solve these problems because every transaction will be recorded in just ONE block of the chain, and because it is a distributed database, security and integrity are built in and guaranteed. It may take some time to build trust in these new systems, given that blockchain transaction verifiers are not the traditional clearinghouses that banks use and trust today. It will take time for banks to trust new technology, and it will take even longer for that trust to trickle down to consumers.
Another company that could soon be poised to give CC and Blockchain a big boost is Amazon. It looks like Amazon is about to launch its own cryptocurrency. This is a good sized country revenue company and they are able to issue a digital token that will be fully convertible with other CCs and fiat currencies as well. Such a move would allow Amazon to:
- issue (AMAZON) coins to reward and incentivize developers on any of its platforms
- issue coins to consumers to use for in-app purchases
- issue coins to game players to purchase virtual goodies within the game
- 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 happen. They have about 300 million customer accounts worldwide, roughly the population of the US, and they have 100,000 sellers on their platforms, selling millions of products. There’s hardly a more mainstream company than Amazon, with a huge, vibrant economy all tied to it. Amazon’s impending entry into the world of CCs could herald the adoption of blockchain technology by mainstream institutions on a large scale. What could be right around the corner if the AMAZON COIN pops up, like the DISNEY COIN, the DELTA AIRLINES COIN, the CARNIVAL CRUISES COIN, the HOME DEPOT COIN; you get the picture.
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