application of blockchain in fintech, such as insurance, as well as ... technology to business challenges, developing pr
Blockchain
While there has been growing interest in crypto-currency such as Bitcoin, it is the underlying blockchain technology that is attracting most interest for its potential to disrupt multiple sectors including finance, health, and government services.
“If you consider blockchain as a way to store and transact on data securely without the need for a central administrator or gatekeeper, then the potential is huge across many industries. There’s already a lot of investment in experiments across banking, insurance, healthcare and government. “First was the Bitcoin blockchain and there is still huge potential for these digital currencies in the world of online commerce. However, the application of blockchain in fintech, such as insurance, as well as non-fintech business such as healthcare or digital media is, in my opinion, much nearer.” VP of Engineering, Rakuten, Fergal Downey
A blockchain is a decentralised ledger of all transactions in a network. Using blockchain technology, participants in the network can confirm transactions without the need for a trusted third party intermediary. Blockchains provide certainty. As each record is independently validated and verified at multiple times by a mathematically secure algorithm, there is a great deal of confidence that the final transaction is legitimate and highly resistant to fraud.
Northern Ireland is home to innovative companies, such as Rakuten and Arc-net, which are pioneering this disruptive technology, while leading consultancy houses PwC and Deloitte are investing heavily in their technology teams in recognition of the leading blockchain talent in the region. These companies are applying blockchain technology to business challenges, developing prototypes for a diverse range of sectors and applications including payments settlement, investment management, insurance, asset management, digital identity and food authentication. Did you know? • PwC Belfast has the largest group of blockchain specialists in PwC worldwide. • The Bank of England is working with PwC Belfast on a Proof of Concept using distributed ledger technology for payments settlement. • Start-up company Arc-net is using blockchain technology to ensure traceability and authenticity in the food sector. • Japanese firm Rakuten has acquired local operation Bitnet and is expanding its operations to a blockchain lab in Belfast.
Home to international firms and disruptive start-ups Case Study Japanese firm Rakuten has opened a blockchain lab in Belfast, through its acquisition of Bitnet Technology Ltd. The lab is a dedicated research and development centre focused on blockchain technology and its potential application in the financial and e-commerce sectors. Rakuten Inc. has over 1 billion customers worldwide and offers a great variety of services in nearly 200 countries.
Northern Irish technology firm, Arc-net, will partner with Queen’s University Belfast in one of the world’s largest food safety projects. The multi-million-pound EU-China Collaboration programme, which aims to revolutionise the global approach to tackling food fraud, will be supported by Arc-net’s blockchain powered platform, and led by Queen’s University Belfast’s Institute for Global Food Security (IGFS), and the Chinese Ministry of Science and Technology (MOST). State of the art technologies, blockchain technologies, and virtual laboratories, will be used by the team to create a unique space to share and demonstrate best practices to improve food safety and tackle food fraud. The project will involve key players in the food industry, researchers, and governments across two of the world’s largest trading areas (EU & China).
PwC NI and Bank of England
PwC established its blockchain team in Belfast to explore the commercialisation of blockchain. The team comprises a group of fintech professionals with a deep expertise and a proven record in delivery of insurance, banking, e-commerce and Bitcoin products and services. PwC expects the team to grow to over 40 digital and technology specialists. PwC’s Belfast facility hosts the largest group of blockchain specialists in PwC worldwide.
PwC Northern Ireland announced a major project with the Bank of England, which provides technical expertise and support to the Bank’s own technology specialists on blockchain, distributed ledger technology (DLT). The Bank of England’s proof of concept was built using PwC’s Belfast-based blockchain technology team, to explore the potential opportunities and challenges of using DLT for payments settlement.
PwC’s focus on blockchain technology represents a major step in the firm’s move towards developing fintech solutions that are becoming a catalyst for change and innovation in the financial services industry.
Seamus Cushley, Director of Blockchain and Digital at PwC has said:
Deloitte is developing 20 blockchain-related prototypes in areas such as digital identity, digital banking, loyalty and rewards, and cross-border payments. Deloitte is developing prototypes for the investment management space and insurance sectors as well. Deloitte is growing its workforce to 1,000 people in Belfast by 2020, as part of a £30m investment package, which will make Belfast home to the largest Deloitte office outside of London.
“Blockchain is regarded by many as the second generation of the internet – and it can be just as disruptive as the invention of the internet was…Today Belfast is known as a cyber hub. In the near future it will be a blockchain hub for multiple industries.”
In the same week, the PwC team announced a collaborative survey of the global insurance industry with Z/Yen Group and Gresham College. This represents the first global initiative intended to determine how blockchain technology could revolutionise and transform the world’s insurance industry.
For more information visit InvestNI.com
