Of the current technological innovations, blockchain has the most disruptive impact on the status quo of the operations.
The program takes the role of a third-party entity that streamlines operations and maximises efficiency, eliminating the need for trust and a centralised authority while automating major functions like transactions.
In simple terms, blockchain technologies are secure and automated systems that track transactions and assets.
Blockchain works as a ledger system, governed by numerous encryption to dictate the next node. This node is what the ledger takes the form of with a timestamp and the right key or encryption will open the next and current node.
The blockchain system is most likely famous for being the backbone of the cryptocurrency bitcoin. Bitcoin's transaction audit operations show how a blockchain system works.
When a new change is to be placed, all nodes in the system form the encryption for both public and private keys. And when they match, the new change is registered as the latest node. It is transparent and secure; hacking into the system would require to encrypt the mathematical codes for all nodes simultaneously.
When it comes to cost-cutting, the effect of implementing a blockchain system is immediately felt. But there is still potential for blockchain to be fully implemented.
Blockchain can make online transactions safer, cut out unnecessary formalities in operations, and save both time and money for any businesses implementing it.
In government, finance, and healthcare institutes, blockchain data management plays a crucial role. Things blockchain will affect includes management and operations, accounting, marketing, human resources, and legal services.
Scope in Bangladesh
When it comes to exports, ready-made garment and manpower are still the key contributors to Bangladesh's economy. But with the rise of service sectors in Bangladesh, there is the potential of IT outsourcing to be the third major economic driver.
Through a lot of trials and tribulations, the IT sector of Bangladesh is constantly growing on the global stage. Neighbouring India may still be the largest outsourcing destination, but India's global IT export is falling as the Indian firms are providing temporal IT services. Whereas in Bangladesh, most IT firms are rather project partners. So the quality of work and services are at the same level or standard.
Blockchain is a very new technology in Bangladesh. But its potential cannot be ignored.
IBM has jointly conducted a training programme with Leveraging ICT for Growth, Employment and Governance Project (LICT) Bangladesh to train young developers on blockchain and artificial intelligence.
These developers were from reputable companies like Brain Station 23, Bangladesh National Digital Architecture, Leads, Genex, and Devnet.
And shortly after the training, many of these companies got involved in programming blockchain-based solutions for the global market, the majority of the projects being financial management related.
But the local potential for blockchain in Bangladesh is still untapped. Many companies in Bangladesh are still on the fence to use blockchain-based solutions; maybe it is due to the lack of governance and who will be liable if anything goes wrong in the system.
As industries in Bangladesh are getting closer to meet the global standards, it is inevitable that companies adopt the newest of the solutions.
Predictably, the financial and banking sectors of Bangladesh will be the first ones to adopt blockchain technologies. But for Bangladesh, the possibility of using blockchain systems is not limited to the financial sector only.
For the country's vision of "Digital Bangladesh", blockchain can, and will be, experimented and implemented in several sectors. The impact will be visible in organisations and educational institutes.
The government has already taken the initiative for performing training and research in blockchain systems. IT parks will be constructed in 12 districts of Bangladesh, starting from July 2020.
Blockchain is probably one of the most disruptive introductions to existing technological solutions. But the scope it holds for an emerging economy like Bangladesh is almost limitless.
For young developers, the implementation of blockchain will open new opportunities for specialisation. And it is a system that could streamline Bangladesh's infrastructure in future, contributing to further economic growth.
Ayman Wasif is a Marketing Executive, Brain Station 23 Limited.