Large companies are currently zooming in on the potential applications of blockchain technology on various industries. In the financial industry, onsline retail giant Overstock has begun experimenting with cryptosecurities and a trade settlement system based on blockchain technology.
For Goldman Sachs analyst Heath Terry, the distributed public ledger could have “massive implications” for asset and ownership transfers. In Honduras, the government has enlisted the help of blockchain technology companies to create a secure land registry and seems to be enjoying its advantages so far.
Blockchain Technology and Asset Ownership
“It’s fascinating in really early stages, but it’s hard to see a world where blockchain technology doesn’t change the way we think about asset ownership,” said Terry. “We’re first pitch, first inning in terms of seeing how companies are going to use the technology.”
When it comes to bitcoin as a cryptocurrency, however, Terry clarified that its adoption has been limited by the volatile price fluctuations against fiat currencies. “The volatility around bitcoin scares a lot of people, it was great in those periods when bitcoin only seemed to go up,” he said. “It’s gone up, it’s gone down and it’s gone up. For a lot of people, the point of having a secure currency the way bitcoin is supposed to be is having a secure store of value, having a way to transfer value.”
He added that bitcoin is currently not competitive against traditional forms of fund transfers or payments, even though the cryptocurrency offers minimal to zero transactions costs compared to credit or debit cards. Nonetheless, he mentioned that he’s positive about the future of both bitcoin and blockchain technology.
“Over time though bitcoin is going to mature, a lot of that volatility will likely come out of the system. You’ll probably see more use cases as it does,” he explained.