Category: Blockchain

Lavin Mirchandani

Demystifying Web3.0 With Lavin Mirchandani at Digital Success Summit V3.0

September 26, 2022

Lavin Mirchandani, the founder at Mirc Media, discussed Web3.0 and its future potential with an engaged audience at Digital Success Summit V3.0. He left listeners in no doubt about how Web3.0 use cases are only going to increase in the future and how it is steadily shaping almost every aspect of our daily lives.  Web3.0 – Some Basics Lavin Mirchandani demystified Web3.0 at a very basic level, outlining how Web1.0 was about helping people read, while Web2.0 enabled people to not only read but also write or respond, ushering in the social media age. He talked of how Web3.0 enables not just reading and writing, but also ownership.  From a platform standpoint, according to him, Web1.0 had companies owning their platforms, while Web2.0 saw companies becoming platforms themselves.  However, Web3.0 is more inclined towards increasing user ownership of platforms. Previously companies earned revenues from users, business owners, and creators while Web3.0 will enable ownership and money-making from platforms all by oneself.  Some other pointers worth noting included the following:  Web3.0 ensures a permission-less economy minus multiple authorizations that we usually require for each activity in the Web2.0 world.  Web3.0 worlds have companies not owning data and this is instead stored on a decentralized database or blockchain. You pay differently for the same and there is no single source.  There are domains being sold as NFTs in the Web3.0 ecosphere as well, with everything established on the blockchain and without renewal requirements.  For every app or platform that is owned by a centralized entity in the Web2.0 world, Web3.0 has a decentralized counterpart.  Four Key Traits of Web3.0 Lavin Mirchandani also outlined the four key traits of Web3.0 which also help from an identification standpoint. These include the same:  Decentralization– Web3.0 shifts away from a central owner or deciding entity.  Blockchain Driven– Web3.0 platforms are driven by blockchain that enables smart contracts.  Universal Identity– Every Web2.0 app needs signing up and logging in, along with several details and IDs. Web3.0 will shift to a system of universal identity with something called a wallet. This does not function like a conventional payment wallet although it can also store money.  Pseudonymous– Web3.0 is not anonymous at all and transactions and their locations can be traced without difficulties.  Use Cases, Layers and More Use cases have already covered aspects like security, banking, finance, insurance, data storage, and identity across the blockchain framework. Other use cases include financial services, NFT marketplaces, social networks, and gaming.  There are several layers contributing toward the Web3.0 ecosystem.  There is a protocol or fundamental layer along with an access layer like the browser in Web2.0 or the wallet in Web3.0 and use case layer. There are products that are scaling up these infrastructure or fundamental layers.  There are apps being built on blockchain with self regulating or smart contracts. Valuations of different chains like Solana or Ethereum now depend on more apps being built on them, more user activity, and economic activity as well.  Every chain is building ecosystems equivalent to the Web2.0 framework in the first and fundamental layer.  Lavin Mirchandani also talked about deFI or decentralized finance where investments, savings, insurance, and banking are already being explored as financial services or use cases on most blockchains. He highlighted the pioneering AMM (automated market maker), citing the example of Uniswap, the self-regulated marketplace which functions like an exchange minus any governing body.  He also added that codes are replicable and transparent and this is what is propelling the development of exchanges. Success in this space is measured through TVL (total value locked) and this stands at $68.62 billion that has been locked across platforms globally today according to him.  NFTs are gaining prominence with their smart contracts, enabling people to gain membership, hold assets, and covering things like gaming and royalty rights as well.  DAOs (decentralized autonomous organizations) ensure on-chain governance which is spurred by smart contracts and voting that is community-based. There will also be more employee-driven organizations in future.  Cryptocurrency is another fast-emerging use case in the Web3.0 world and they encompass assets, stable coins (which mostly operate like currencies), security tokens, and utility tokens. He also outlined the need for more responsibility and awareness while using the platform. Greater freedom automatically underlines the need for more alertness in using and securing wallets. More education and awareness on Web3.0 is hence necessary according to him.  He also advised people who are absolutely new to the space to start interacting with others and create groups on Discord, Crypto Twitter, and Telegram among other platforms to gain a better understanding. 

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The Neotia University (TNU)

Privacy and Blockchain- Why is Fintech Interested?

May 17, 2022

Privacy and blockchain go hand in hand. There has been a massive debate on Blockchain privacy or the lack of it and also how it safeguards privacy. Many have flagged predominant Blockchain privacy issues including the vulnerability toward transactional data leaks. Why was this a concern? This is because public keys of all networks are ever-visible. Security breaches have also been reported in the recent past, related to smart contracts and Ethereum. When it comes to blockchain security, there is a concept of public and private keys. Blockchain based systems make use of something called asymmetric cryptography for securing transactions taking place between the users. Every user has his or her own private or public key in the system which is a number string without any relation. The question now is, in spite of these pressing aspects, why is Fintech still biting the bait? What lies behind its all-out desire to embrace blockchain for greater consumer safety and privacy? Let’s find out! Privacy And Blockchain- How Things Stand The fintech space is no stranger to this technology which is already the hottest moot point within the Government, industry, start-up and media spaces. And why not? Blockchain enables secure data recording, making it almost-impossible to break into the system or modify it in any manner. The bonhomie between blockchain and fintech makes more sense when you perceive the former as a digital ledger with its own blocks or records. These are deployed for asset tracking and transaction recording within the network. This makes operations more democratic, providing higher security and transparency in a more optimal model for the sector, while decentralizing privacy in a way of speaking. Transactions are noted in real-time while there is a reliable transaction record, taking away the issue of modifying earlier ones. What it means is that blockchain technology can virtually make all future transactions completely bullet-proof in terms of privacy and reliability. No wonder it is becoming the new poster boy for fintech companies of varying sizes. Privacy And Blockchain- An Accepted Fact Now The trends have not gone unnoticed amongst the Mandarins in power. The Government has established its own Centre for Excellence in Blockchain Technology, as part of the Union Ministry of Electronics and Information Technology. In essence, the Government is already making use of this technology for its Digidhan platform that enables accurate reporting, monitoring and analysis of all types of digital payments transactions in the country. Talk about Blockchain going mainstream and the proof lies in the pudding. The Government has already shown the way forward, embracing innovation and Blockchain hand in hand. In fact, moving forward, Blockchain could well generate millions of worldwide jobs while adding significantly to global economies in the next decade. Fintech players are finding greater value in aligning with this technology for ensuring the absolute privacy and safety of each individual transaction. Blockchain is mostly being used for digital identity, transferring funds and setting up proper infrastructure for digital payments. These are already flagship offerings for several BFSI start-ups, fintech entities and even conventional banking players in the digital space. India is already home to 500+ blockchains throughout the financial services spectrum as per estimates. In fact, with Web 3.0 set to make a bigger splash in the coming years, blockchain (which Web 3.0 will depend upon), will assume a more significant role. It will make the banking system near-indestructible for anybody to break in or pilferage information. It will also centralize this entire network simultaneously, while lowering fraud risks for financial transactions and ensuring a higher level of consumer security. Blockchain is what will contribute towards a transparent, reliable and easily accessible system of peer-to-peer or digital lending which will be more customized across banks or fintech companies. Blockchain technology is also not stagnant; it will continue on its path toward evolution, offering newer fintech upgrades periodically. Privacy And Blockchain- What Lies Ahead? The Indian Government is already doing its bit for promoting start-ups and financial inclusion. With the Government connecting the dots between privacy and blockchain, private players will not be too far behind. Blockchain technology will be prioritized for creating these transparent, reliable and bullet-proof fintech and lending ecosystems of the future. And of course, new-age fintech start-ups and associated companies will drive this trend without a doubt. Blockchain technology is currently a beacon of hope for the fintech space in terms of higher consumer safety and privacy. However, more needs to be done to ensure its rapid adoption. Key Takeaways: Blockchain is finding favour in the fintech space. The sector is relying on blockchain for next-generation customer safety and privacy. While some security concerns remain, Blockchain has decentralized data ownership and control, thereby creating the foundation for a potentially fool-proof future ecosystem. FAQ How does blockchain support data privacy? Blockchain based transactions enable users to fully control their own information via public and private keys. They can own their data and privacy in a decentralized manner. There are no third-parties or intermediaries who can get this data and potentially misuse it. Personal information stored on blockchains are accessible and controllable by owners. They will have full control over the access of their data by third parties.

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Blockchain and IoT Revolutionizing Supply Chain Management

November 21, 2018

Supply chain management can be defined simply as a baseball game… You must be wondering how isn’t it? All the participants in the supply chain management are baseball players – each having a role such as a shortstop, catcher, and pitcher. They are assigned specific duties such as hitting, throwing, and fielding – for the sole purpose of their team being successful. Similarly, in SCM a large number of people are actively involved in a number of processes for the successful completion of the assignment task – in short, the finished product reaching the end customer. Understanding the dedicated roles of each member of the SCM will help in developing winning strategies which can be implemented by the supply chain teammates. A supply chain can be defined as all the individual and business contributors who are involved in the creation of a product, right from the allocation of the raw materials to the end products. Source:https://applicature.com Supply chain activities comprise of : farming refining design manufacturing packaging transportation Global supply chain management is complicated both in terms of technologically and logistically. This is where blockchain integrated with IoT comes to simplify the process of SCM – making it more transparent, secure and traceable. Today supply chain has become extraordinarily complex, considering the uncountable links to create and distribute goods. There can be a hundred stages of the supply chain, depending on the product in consideration to the several geographical locations, the number of invoices raised and payments made, the number of entities and people involved in the process and time span. Source:https://applicature.com/blog/the-next-technological-revolution-blockchain-for-supply-chain-management Blockchain can help in creating a persistent, transparent, public, append-only ledger as it creates a network system where you can add data to and not change previous data within it. It does this through a mechanism for creating consensus between distributed parties that do not need to trust each other – they just need to trust the mechanism by which their consensus is arrived at. The blockchain is basically a distributed digital ledger which can be applied in numerous forms for any kind of agreements/contracts, tracking, payment and exchange activities. Every transaction is stored on a block, which in turn is distributed to uncountable nodes (devices) – creating multiple copies of the ledger all across the network. Every block is linked with its previous block and the next block – making it extremely secure and keeping the record immutable. This technology is decentralized which makes it quite efficient as well as scalable. In supply chain management, it can play an active role, right from storing of the products to the warehousing to their delivery to the settlement of the payment. FOR EXAMPLE – in the food industry business networks where data such as location, temperature, vibration, and humidity needs to be shared. A permissioned blockchain can help in creating a tamper-evident record. This will helps to open up a new way of automating processes among partners without setting up an expensive centralized IT infrastructure and all participants will have access to the same data at every point of time So no worry of validating and depending on others. Fig: the flow of data by use of blockchain Let us see how supply chain benefits from data sharing through permissioned blockchain and IoT: STATUS DATA The IoT enabled package will send the status data (temperature, location, etc) for passing through several carriers BUSINESS CONTRACT The business contract specifics will have to be met as we bring the shipment to the factory or to the store. The contract validation can be checked without any dependencies SENSOR TRACKING  A temperature sensor embedded will store package data locally and send it to the blockchain network through the IoT connected devices at wait points upon receiving connectivity. NO CENTRAL AUTHORITY Using blockchain, all the business partners (Producer, Processor, Distributor, Retailer, and Auditor) were allowed to access the same temperature data without the need for a central control. THE FOOD TRUST – ORGANIZATIONS USING BLOCKCHAIN IN FOOD INDUSTRY Some of the greatest retail giants of the food industry such as Walmart and Nestle SA along with eight other companies have founded the Food Trust which aims blockchain based food supply chain management. The use of Blockchain in this industry will help to possess a complete and accurate monitoring of the movements of the food items, ensuring no contaminated or damaged items reach the end consumers. The primary objective of the Food Trust is to avoid past crisis such as the E.coli bacteria contamination of romaine lettuce, which happened recently, affecting 35 states. The other companies who are members of the Food Trust are Unilever NV, Driscoll’s Inc., Golden State Foods, Dole Food Co., Kroger, McCormick and Co, Tyson Foods, and McLane. Source: https://hackernoon.com/to-blockchain-or-not-to-blockchain-45004a23e8a7 Walmart Walmart has integrated advanced levels of traceability powered by blockchain technology across the global food supply chain management. Walmart, one of the top fortune 500 companies in the world has collaborated with blockchain to improve food traceability and tracking as well as food safety in China. The organization has already started implementing Blockchain based supply chain structure to accomplish greater transparency across the global food-supply chain, which includes mangoes in the U.S and pork in China. Frank Yinass, Walmart vice president spoke on Walmart’s food safety solutions based on Blockchain platform, “What we hope to do with Blockchain is to bring all food safety system stakeholders to collaborate, so that we can do it very quickly and efficiently.” Walmart extended the application of blockchain to reduce the growing instances of food-borne illnesses by tracing issues in the food chain and at the same time evading huge losses for suppliers and retailers during the recall. This food retail giant is using this new age technology to track vegetables from farm till store for quick detection of contaminated products. It has integrated the information of the vegetable suppliers in its blockchain database to trace every unit of vegetables. Source: https://www.pinterest.com/pin/612419249303061416/ Walmart’s entry in the world of blockchain based ensured data privacy

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Five Ways to Transform Your Business through Right Digital Infrastructure

September 4, 2018

While most businesses have adopted digital infrastructure to some extent, many still do not have a holistic plan to transform their business using the right digital infrastructure. Studies show that most businesses tend to retain legacy tools while implementing the digital strategy, and what really happens is, there is a complete mismatch between digital and non-digital, leading to subpar organizational performance. In result, companies see results that are satisfying in some areas, while creating new risks and liabilities in others. Businesses need to have a 5-pronged approach towards digital infrastructure. This will help look at their entire business infrastructure as a single entity and build a strategy around it. In fact, the right strategy will help your business to transform itself into a lean and uber-efficient machine that can give your competitors a run for their money. Most importantly, having a digital strategy will help you to focus better on your business and enter new avenues. In this article, we describe our 5-pronged approach to make use of digital infrastructure in the right way and optimize your business to achieve new heights. Evaluate existing hardware and go for a major upgrade One of the first things you need to do in order to assess your hardware situation is to examine how your network infrastructure is. Network infrastructure includes both software and hardware components and is an integral part of IT infrastructure. For your software components to work efficiently, your enterprise network needs to be top notch. Evaluate existing routers, operating systems, network security applications, network operations, IP addressing, wireless protocols, etc. At the same time, evaluate data centers as well, as most businesses use subpar services which are often exorbitant. Consider seeking an external vendor’s help in choosing the right data center for your business requirements. To transform your business using the right data center, begin with creating a strategy. Implementing agile IT organization is crucial to this process, as is virtualization and cloud. Intel’s whitepaper recommends evaluating aging infrastructure by computing various metrics and KPIs. Please bear in mind that agile infrastructure can either be virtualized or nonvirtualized, and this solely depends on your organizational requirements. Nevertheless, virtualization is key to having a successful cloud strategy, which we shall discuss next. Move to the cloud whenever possible Today, you can practically move every legacy technology to the cloud and reap the benefits of reduced costs, increased efficiency, and access to technology which you previously didn’t have. Software as a Service (SaaS) helps you to access and use software programs which were probably out of reach for you if you are a small business. If you are a large business, SaaS is equally important to reduce dependency on physical infrastructure and keep your business agile and scalable. SaaS models offer pay-as-you-go schemes, which allow businesses of all sizes to scale or downscale depending on their situation. In addition, the cloud can also help you to access infrastructure via the cloud. Storage, data centers, and even networks can be used on an infrastructure as a Service (IaaS) model. Cloud computing helps businesses to eliminate organizational flab and grow lean and agile. If you are a service provider yourself, consider using PaaS (platform as a Service), which helps you to develop new applications and tools on cloud-based platforms, instead of having to invest in expensive platforms. In short, cloud computing provides the technological impetus required to make your business grow quickly. Integrate what you can With more businesses using tools to automate processes, ERP, CRM, and HRMS tools are almost an integral part of every successful business. However, they create unique problems of duplicate entries, repetitive manual exchange of information, and a continued lack of coordination between departments. Integrating these tools using available APIs is a popular method to reduce duplicate entries and increase automation. Most importantly, data can be shared between integrated tools, leading to richer insight and more accurate predictions. If you have an eCommerce business, for instance, you can integrate your ERP with your CRM, so that purchases made by customers online is immediately reflected the inventory department, which can replenish stocks automatically. The possibilities are endless, and such a heightened level of coordination is only possible when you integrate software tools. Before you decide to integrate, make sure that you have an integration strategy, and that you have spoken to vendors who will be able to do it for you efficiently. Integration strategy also involves training your staff so that they use the new interface effectively. In addition, you will also have to account in for security-related ramifications. Implement Internet of Things, Blockchain, and Artificial Intelligence These may seem like disparate terms often used by IT honchos, but they are very important for businesses of all sizes. IoT, or Internet of Things, uses sensors embedded in devices to intelligently communicate with servers and perform functions that ordinary devices cannot. These can further be connected to smartphones so that device-users have more control over how they interact with it. In a business perspective, sales and marketing teams can use IoT-enabled devices during promotional events, while logistics and product-handlers can use IoT enabled product tracking. Blockchain is another digital technology which can help businesses immensely. You can use smart contracts to ensure security, and distributed ledgers allow you to process transactions in a safe and secure manner. Blockchain has a number of applications for businesses, right from identity verification to automated approvals. Artificial intelligence is another emerging technology that has now become mainstream for business use. Regardless of the size of your company, you can use AI-enabled chatbots for customer service, social media management, and certain marketing tasks. These technologies are accessible, affordable, and easy to implement. Businesses only need to decide to embrace them before their competitor does. Focus on digital governance and security To ensure business success, it is not enough to have the best infrastructure in place. Digital infrastructure’s success depends on how secure it is against various kinds of threats, and how wisely you are

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Blockchain as the Newest RegTech Application – An Opportunity to Reduce Financial Institutions’ Burden of KYC

August 17, 2018

Regulatory challenges have often caused unnecessary inconvenience and delays within the financial services industry across the world. Compliances issues affect every financial service today, and many businesses have often paid enormous amounts in terms of fines, legal fees, and loss of business. The need for compliance and stringent regulations are necessary, especially in a world that is increasingly becoming prone to fraud, security threats, and cyber threats. Governments and regulatory bodies are right on their part to expect compliance from financial institutions, one of which is the ubiquitous KYC document (Know your Customer document). While financial service providers have meticulously collected KYC documents and ensured that they comply, the process has often been long drawn out, complex, and often mired with bugs and technical issues. Most KYC compliance happens digitally, and companies often repeatedly seek KYC from customers, often leading to opt-outs. Technology can help fix this issue for financial service companies, and one way is using RegTech. RegTech is short for regulatory technology and makes use of cloud computing technology delivered via a Software as a Service (SaaS) model so that businesses can easily process KYC documentation quickly and efficiently, at a lower cost. What is going to change RegTech even further is the use of Blockchain. In this article, let us take a look at how Blockchain is changing RegTech, and helping financial institutions to process KYC documentation quickly and efficiently. What exactly do the RegTech companies do? So far, companies that offer RegTech solutions have been working with regulatory bodies alongside their clients, financial institutions. By combining the goodness of cloud computing and big data, RegTech companies have made available sensitive information often required to validate KYC documents. Many RegTech companies have also used predictive analytics and big data to comb through previous regulatory failures and predict future risks that financial institutions should consider. Most RegTech companies have focused on creating analytical tools that sift through big data to pick sensitive information that could help financial institutions to comply better with regulatory authorities. RegTech companies offer solutions ranging from KYC validation to alerting money laundering activities and preventing cyber hacks and data breaches. Simply put, RegTech companies monitor digital transactions in real time and identify irregularities to prevent fraud and other risky events from taking place. Financial institutions alone cannot identify, predict, or avert these risks, nor will they be able to comply with all the regulations, including KYC processing. Using Blockchain for KYC processing Blockchain, which is a distributed database stored on a particular network, and accessible on all computers authorized to do so, is a technology that is picture-perfect for regulatory compliance. In Blockchain technology, every file is split into parts called blocks, and each block needs to be validated individually by the entire network. Smart contracts are based on this technology, and for a contract to be processed, all parties involved need to provide their digital signatures. As all data is encrypted, security is always ensured. In addition, as data is stored across a network and not just on a single computer, hacking or tampering with data is impossible. Most importantly, Blockchain data is immutable, and all changes made to the original database can be tracked. In the financial services arena, this quality is very important because customers simply cannot make changes to their financial history if something had gone awry previously. KYC documents can be processed in an error-free, encrypted, and automated environment, which simply is not possible in other technologies. RegTech applications using Blockchain can integrate both KYC and anti-money laundering steps for commercial usage, and this can be made available to companies both publicly and privately, depending on regulatory requirements. How Blockchain helps companies to reduce KYC burden Blockchain applications can be delivered as cloud-based RegTech apps via a SaaS model to financial institutions so that they can conduct their KYC operations to meet regulatory compliance. Let us take a look at how Blockchain can help financial institutions to reduce the burden of KYC: Identify and verify client information KYC requires financial institutions to identify their customers’ personal details such as name, address, nationality, birthdate, etc. Such basic data can be verified with the help of an identification card that is approved by regulatory bodies. Blockchain digitalizes information and validates such information by cross-verifying digital identities from various sources already available to the Blockchain. In other words, Blockchain not only helps customers to manage their digital identities, it also helps financial institutions to conduct basic KYC seamlessly. While KYC for individual clients using Blockchain is quite straightforward, it gets a little complex for professional entities. Professional entities require the KYC processing of directors’ identities, and other key persons (or corporations themselves) involved. Avoid risk by screening high-risk individuals Most financial institutions gain access to only the basic information of a customer. This basic KYC is not enough to avert risky situations such as money laundering, payment defaults, frauds, financial bankruptcy, etc. Banks can easily screen high-risk individuals if they subscribe to a Blockchain database that stores and validates information related to previous risky financial behavior. In addition, Blockchain-based RegTech apps can also predict future risky behavior by combining predictive analytics and big data with Blockchain. If a customer has had a questionable financial history, for instance, a Blockchain would confirm this to the bank or insurance company, which can decide not to lend a loan or approve an insurance claim. This mechanism can also help in averting money laundering and fraudulent activities, helping financial institutions to comply with regulations. Determine the inherent risk of customers A number of financial relationships require a much deeper insight about the customer or client. The KYC team will need to process questionnaires that probe negative press releases, criminal activity, political opinions and alliances, and a variety of other publicly available information. However, the KYC team simply cannot put all these unrelated datasets together and arrive at conclusions regarding the risk a customer poses. Regulators often prescribe the criteria for determining a customer’s inherent risk, and

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Disruptive Innovation in Payments

June 1, 2018

We could have written paeans about FinTech a couple of years ago, but to do so now would be to sing praises about what is already the norm. FinTech, the inevitable result of finance services making use of technology to enhance solutions and services, is the single largest disruptor in the world of finance. In addition to being a disruptive development, FinTech has evolved into becoming almost conventional, replacing legacy methods and making them seem archaic. Yet, a closer observation reveals that there is a lot of disruption taking place even within contemporary FinTech. Technology has driven FinTech to continuously evolve itself, and newer players continue to give a run for their competitors’ money almost every day. In this article, we briefly recap the growth of FinTech and contextually place this growth in a situation that continues to bring disruptive innovation in payments. We shall also take a look at certain trends driving this disruption, and what we can expect from this exciting development in the near future. The growth of FinTech While it may sound like a fancy term, FinTech isn’t actually very new. Using technology to drive financial procedures has been around since the 1900s in various forms. From being able to wire money to someone in a different part of the world to modern peer-to-peer payments, FinTech has come a long way. Barclays opened the first ATM in the world in 1967, and Wells Fargo kick-started the world’s first online checking account in 1995. PayPal came to being in 1998, and online transactions and payments have grown exponentially ever since. Apple Pay, which was announced in 2016, was another watershed moment, as it heralded a new smartphone-based payments solution. Finally, blockchain-based payment technology gave rise not only to cryptocurrency, but also to smarter payments, seamless insurance claims processing, loan disbursals, and contactless payments. We had recently written an article about how Blockchain is bringing winds of change to the insurance sector. Drivers of the change As we can see, FinTech has evolved dramatically in the last few years due to rapidly evolving technology. However, market behavior and changes within finance sector have also been major drivers of change. In this section, let us take a look at three aspects of this disruptive innovation in payments. Technological development It goes without saying that technology is a big reason for disruptive changes in FinTech. In particular, artificial intelligence and blockchain have caused tremendous changes in the finance sector, propelling drastic changes that have taken even FinTech players by surprise. For example, PayPal and other peer-to-peer payments solutions were taken by surprise when cryptocurrency came to being. Blockchain in fintech is the single-most disruptive situation at the moment. Cryptocurrency players like Bitcoin etc. were taken by surprise when Ethereum-based legal peer-to-peer payments application started to be launched. For instance, blockchain-based claims processing, stock purchase, and Ethereum-based P2P payments solutions are quickly taking over traditional smartphone-based payments applications. Smart contracts have enabled seamless and secure transactions, making financial procedures more reliable than they ever were. In fact, it wouldn’t be an exaggeration to call blockchain a cultural phenomenon. For an industry that focuses much of its energy on building and maintaining trust, blockchain and smart contracts-enabled applications are almost a godsend. It wouldn’t be an exaggeration to state that technology itself is driving change and causing more disruptive innovation in the field of FinTech. Those who aren’t part of this exciting evolution will quickly be left behind. In-store mobile payments are touted to exceed $503 billion by 2020. Just in the US, a whopping 150 million people are expected to use in-store mobile payments. The spending ability of mobile payments users is very high. They spend twice as much as non-users do, and earn at least $70,000 a year. Security-related doubts have been a hurdle for mobile payments adoption. 47% of cybersecurity professionals felt mobile payments weren’t secure enough at the moment, as opposed to just 23% feeling confident. Public Wi-Fi is the greatest vulnerability with respect to mobile payments, with a threat figure of 26%. This is closely followed by stolen devices, a situation whose threat figure is 21%. Market trends Increasingly, users have come to expect a lot more than what technology can offer at the moment. We can describe this as a market that’s so spoiled by choices that even the most disruptive technology no longer feels like disruption. Consumer behavior has shifted from being awestruck by disruption to expecting innovation by default. In other words, services that do not seem innovative enough for consumers simply get ignored. This has forced most industry players to closely study consumer behavior and surpass their expectations. This isn’t usually possible because users have come to expect a lot more than what technology realistically allows us to do. Yet, FinTech companies and solutions providers have to work harder to keep pace with market expectations ad and focus on driving change. Adopting innovation and complex technologies such as artificial intelligence, data analytics, and blockchain will help FinTech companies to surpass market expectations and bring value to the services they launch. Data analytics, in particular, can help FinTech entities to study consumer behavior closely and launch FinTech products that match market expectations. Industry changes There are a number of changes within the industry that are propelling disruptive changes within FinTech sector. Banks are desperate to retain their roles in the finance space, and payments intermediaries may simply vanish, because of smart contracts and distributed ledger technology. The same distributed ledger technology is helping FinTech organizations to make cross-border payments instantaneous, giving rise to new corporate and consumer solutions that will enable instant international payments a reality. Fintech companies have also begun to make use of open APIs, machine learning, and robotic process automation to enhance the experience. Most importantly, a lot of FinTech activity currently is focused on thwarting cyber-attacks, ensuring data privacy and safety, secure financial transactions, and eliminating payment frauds. Blockchain, smart contracts, artificial intelligence and machine learning are currently top

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Digital Disruption In Insurance: The Rise Of InsurTech

May 21, 2018

In the last few years, #InsurTech has increasingly proved to be a disruptive influence in the insurance sector, an industry which can be considered as one of the most complex in the world. #InsurTech with the help of technology and innovation has managed to immensely improve the efficiency of the existing operations, offering digital first customer-led services and enhanced customer experience. I had a very deep discussion with Dennis Grönger, InsurTech Professional, Author and Speaker at NextTo InsurTech, on the rise of #InsurTech and Digital-Led Product Innovation in Insurance. The detailed version of the conversation is given below. Every week we publish insights with a Q&A with CIOs, CTOs CMOs, and CXOs. See the link to the previous LinkedIn Q&As by Indus Net Technologies at the bottom of this post. Q1. What are the key trends in product innovation in the Insurance industry? Dennis: I am an InsurTech expert and this sector is full of surprising new ideas and concepts. Every conference I visit is full of exciting start-ups. And it’s the same on the incumbent’s side. Product innovation is a key component of Digital Transformation in the insurance industry. Despite regional characteristics, two general trends can be observed worldwide. First, there has been a shift from one-size-fits-all products to fine-grained components that can be combined individually for the customer. Second, more and more insurance services and products are being developed that add special value and benefits for using customer data. Q2. What are the key enablers and drivers of innovation in the insurance industry? Why NOW? Dennis: Two big changes have been essential for today’s innovative insurance industry to develop: a technological change and a cultural change. I wouldn’t dare to tell you guys at Indus Net Technologies about technological change as you’re much better than me in this area! As for the cultural change, I’m not aware of any insurance company that hasn’t radically changed how it uses the creativity and great ideas of its employees. When I started my career in insurances business, the whole industry was full of patriarchs at the top of companies and employees were just considered numbers on payrolls. Since then, things have fortunately changed, and many successful innovations would be inconceivable without committed employees. Q3. What are some of the interesting digital-led product innovations in the Insurance industry? Dennis: The time of new digital insurance products has just begun, and I am convinced that we are going to see a lot of exciting new and innovative ideas. For example, there is a new class of insurance products that wouldn’t work without full digital capabilities and niche products with low premiums. The combination of ‘niche‘ and ‘low premiums’ was out of the question for incumbents until now; Digital Transformation has changed that. Cyber Insurance is another good example of a different digital-led product trend: products as a combination of services that extend beyond coverage. In case of a cyber-attack, the most important thing is to find the best specialist to stop the attack as quickly as possible. How would this be solved without a digital platform that connects your customers with specialized service providers? It would be impossible! Q4. Why is user experience leading the way in Insurance innovation? What problem are we solving here? Dennis: Relevance and simplification are key terms in the case of user experience in the insurance industry. Customers want more personalized services and products that are individually tailored to their personal needs. Product relevance is also a question of when and how the customer wants to handle this product, before and after buying it. Insurers need to find answers to these customer demands. However, without simplified products that your customers can easily understand, the only user experience that you are going to get is bad user experience. Q5. How much of IoT and Big Data Analytics is being used to create new products? Has the IoT generated data attained statistical significance to be used for underwriting? Dennis: Well, I am a strategy expert and not an underwriter but there is no doubt that IoT and Big Data Analytics are going to disrupt the ways that underwriters analyze and model risks. Connected cars have already reinvented car insurance and, with Smart Home technologies in a bundle with home insurances, for example, insurers have the chance to offer real protection in addition to coverage. Q6. How can blockchain be used for disruption in the Insurance industry? Dennis: That’s the billion-dollar question right now, isn’t it? I think it’s still too early to make any reliable predictions about blockchain. However, for me, the biggest opportunities for insurance companies are in reducing costs, reducing errors, and reducing time by using blockchain-based technologies. Q7. Do you see a future for people-to-people (p2p) Insurance? How far (or near) is this from reality? Dennis: Great examples of P2P insurance, like Lemonade, have proven how far you can get with complete customer focus. But is a P2P business model profitable or even scalable? I don’t think so. The numbers from Lemonade that I’ve seen so far are reporting huge losses and Germany’s P2P pioneer Friendsurance was, due to its numbers, forced to switch their business model and have become more of an online broker with a few P2P-benefits for their customers. Q8. What are the constraints around innovation in the Insurance industry? Dennis: I want to answer this by quoting a friend of mine, Dr. Robin Kierra. “Insurers needs to do everything at once: do their homework, go out and play, and prepare for the exams in 10 years.” Would you like to try that with the 25+ year old legacy systems that most insurers are still using? Better not, but it is a fact that Digital Transformation and innovation are still at their beginnings in the insurance industry. Q9. How can Insurance and InsurTech collaborate to breed innovation at scale? Dennis: As long as insurers have the customers and InsurTechs have the technology, there is no other option than to cooperate with each other.

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#HealthTech – Has It Emerged Finally?

May 15, 2018

The emergence of the digital revolution comes at a time when healthcare is in the utmost need to respond to the ever-growing demand for resources. #HealthTech is required not only to come up with solutions but to deliver them as well. Let us see what is happening in the #HealthTech sector around the world. Top 3 technologies that can change the #healthcare industry#AI #healthtech #ehealth #tech #medicaltech #sensors #technology #IoT #Industry40 @rajat_shrimal cc @evankirstel @MikeQuindazzi @debashis_dutta @kuriharan @AnjaHoffmann @chboursin @jblefevre60pic.twitter.com/1Mq62vpXQk — Rajat Shrimal (@rajat_shrimal) May 13, 2018 10 promising #AI applications in #healthcare >> @HarvardBiz HT @psb_dc via @MikeQuindazzi >> #HealthTech #BigData #DataScience #AI #MachineLearning #PredictiveAnalytics #DeepLearning >> https://t.co/JCLs4Pv9iz pic.twitter.com/NsoRtiTLaa — Mike Quindazzi (@MikeQuindazzi) May 14, 2018 https://twitter.com/ai_amelia_/status/996215570931638277 Managing Medical Data on The #Blockchain [Infographic]https://t.co/BN0lJxxbIy [by @gemhq]#BigData #HealthTechCc @pierrepinna @SpirosMargaris @andi_staub @JohnNosta @JimMarous @evankirstel @ahier @IrmaRaste @MarshaCollier pic.twitter.com/r2xhdKs8pO — ipfconline (@ipfconline1) May 14, 2018 #ArtificialIntelligence #Cancer #Healthtech This #pen may let surgeons detect cancer in seconds @CNBC@TamaraMcCleary @SpirosMargaris @psb_dc @FrRonconi @fabiomoioli @DanielDiemers @HealthcareWen @KirkDBorne @JohnSnowai @AntonioSelas @ndwr @NeiraOscipic.twitter.com/uTfIe5ABLW — Andy Müller (@andy_lucerne) May 14, 2018 This 3D printed prosthetic arm is sleek in design and feels intuitive. #3dprinting #prosthetics #engineering #healthtech pic.twitter.com/vlI5cVRgdE — Evan Kirstel #B2B #TechFluencer (@EvanKirstel) May 10, 2018 How #Blockchain Will Transform Healthcare Information Managementhttps://t.co/JDKe6DEBA4 [by @TD_Madison v/ @Datafloq]#HealthTech #IoT #AR #VR #Wearables #SupplyChain Cc @ahier @evankirstel @DeepLearn007 @MarshaCollier @jblefevre60 @Bill_IoT @andi_staub @psb_dc @IrmaRaste pic.twitter.com/bXuNK7aOXk — ipfconline (@ipfconline1) May 12, 2018 Doctors are using #AI to see how diseases change our cells https://t.co/NksYtfJBFx @wef #ML #3D #health #HealthTech@evankirstel @ipfconline1 @SpirosMargaris @JacBurns_Comext @Fisher85M @helene_wpli @ImMBM @chboursin @mallys_ @jerome_joffre @psb_dc @ahier @JohnNosta @HITpol pic.twitter.com/UZD9hAia8i — Jean-Baptiste Lefevre (@jblefevre60) May 11, 2018 This Portable #3DPrinter Could Print Skin Over Wounds https://t.co/2yYckJfVX9 #healthtech pic.twitter.com/Ypr9fFhXJ2 — Evan Kirstel #B2B #TechFluencer (@EvanKirstel) May 10, 2018 This is a young an growing sector. However, the ever-evolving #HealthTech will surely contribute a lot to the welfare of the society.  

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Winds of Change in the Insurance Sector : Blockchain in InsurTech

April 4, 2018

When Kelly Thomas started to work as an independent insurance broker in 2003, she only had a brick-like cellphone and a clunky laptop on which she made her presentations to company directors, hoping they would buy policies for their employees. Fast forward to 2018, Kelly has a successful insurance consultancy in New York and is often asked when she is going to adopt blockchain technology. She feels overwhelmed but is constantly looking for ways to implement blockchain. Overview of Blockchain For the uninitiated, blockchain as-we-know-it-today began its journey in 2009, when crypto-currencies such as Bitcoin started to become popular. What was initially a vehicle for the digital currency, quickly metamorphosed into the next big thing after the Internet. In a Blockchain, transactions are stored in discrete data blocks. These blocks are stored on decentralized registers, also known as “ledgers”. Every transaction is immutable, which means, once a transaction is registered as “having taken place”, no one can edit it. This is the very premise of Blockchain and the reason why it is so secure. Human intervention cannot alter previous transactions, and every human intervention is recorded, and for it to take place, there needs to be the consensus of the sort. This consensus can be mutually agreed upon so that future transactions take place automatically, over a super-secure and decentralized network. In short, Blockchain makes sure that every event or transaction is recorded permanently, and the transaction goes through only when certain pre-agreed conditions are met, and there is absolutely no room for hacking, tampering, altering of facts, or unsupervised editing. Such a technology finds itself invaluable in various industry sectors such as insurance, banking, and finance, identity management, healthcare, etc. Evolution of Blockchain in the insurance industry The insurance industry is one of the most conservative environments in the world, alongside banking and finance. Insurance entities need to be conservative because claims handling are based on trust, and both insurers and policy-holders depend on mutual trust for creating an environment of security against various threats (against which policies are bought, and risks are underwritten). Insurance industry’s reluctance to adopt newer and innovative technologies is often viewed as its tendency to be recalcitrant towards innovation. However, this is not true. The insurance industry has traditionally adopted the “wait and watch” approach when it comes to making big changes, and this tendency has helped it to survive for centuries. The situation today is no different than when insurance agents were skeptical about using online methods and mobile applications to process policies and claims. The insurance industry consists of $1.2 trillion of global economy, and 74% of this space is dominated by online policy purchases. Technology adoption has so far been from the side of consumers, who have adopted IoT technology in cars, and incorporated “smart home” technology to lower their premiums and insurance costs. However, insurers and underwriters too have slowly adopted technologies such as data analytics, predictive analysis, and artificial intelligence to determine risk and assign premium costs accurately. These technologies are part of what is now termed as “InsurTech”, a space that consists of various technologies to help move the insurance industry forward. Blockchain is increasingly part of InsurTech because it adds a layer of trust and safety that other technologies simply cannot. Indeed, the most successful insurance companies have already begun to implement blockchain to validate transactions and to authenticate claims processing. Insurance giants which have remained reluctant to adopt blockchain stand the risk of becoming irrelevant or losing out to competitors. Let us take a look at how blockchain helps insurers. Insurance policy criteria are programmed into smart contracts Smart contracts determine if insurance claims are authentic and if they meet the criteria set by authoritative sources Once authenticated, Smart Contracts use Blockchain to process payments automatically. Blockchain eliminates biases and prejudices on the part of the insurer while processing payments, while it also eliminates false claims made by consumers. How Blockchain can be used in insurance Let us take a look at how Blockchain can be used by insurers, and why it is so important to begin now. Identity management The identity of the policyholder is one of the most crucial factors while processing claims. Blockchain is the safest and quickest way to authenticate an individual or a group of individuals’ identity. Using blockchain-based identity management helps insurers to eliminate identity thefts, impersonations, and errors in claims processing. Fraud detection Insurance frauds are etched in popular memory, with Hollywood noirs often using them as the basis of their plots. Billy Wilder’s 1944 film noir Double Indemnity comes to our mind. Whether it is a well-planned insurance heist or an unethical insurer trying to outwit a genuine claim, it is straight down the line for both the insurer and the policy-holder. Blockchain eliminates all kinds of frauds and helps reduce costs associated with fraudulent insurance claims. Peer-to-peer insurance P2P insurance consists of a group of individuals with similar interests, who pool their premiums to insure against a certain risk. Blockchain helps to authenticate claims processing in P2P insurance, and eliminates false claims altogether, and automates the process of claims processing. P2P insurance is also known as social insurance, and Blockchain can help increase trust in such P2P models. Minimize errors Claims processing is often riddled with errors, both intentional and unintentional. Blockchain helps to mitigate this by automatically cross-verifying with various data sources before authorizing transactions or events. This reduces the probability of errors and minimizes unwarranted payouts. Risk reduction Blockchain technology helps bring like-minded people together and work on a consensus basis to authorize transactions automatically. This means multiple insurers can come together and agree to share risks by taking a portion of the responsibility when huge losses occur. Participants in such a model can consent to use Blockchain as their reference data as it is immutable and transparent. Smart contracts One of the reasons why Blockchain is so popular is because of Smart Contracts. Smart Contracts work on the principle of Blockchain, and approve

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