A Matter of Trust
“Blockchain can create much bigger disruption, given the right mode of execution.”
While blockchain can be used by large companies, it is also applicable to many others, including smaller businesses. “The click is on how the mass can be collaborated into an ecosystem. The ecosystem using Blockchain will be an interesting opportunity to seize the chance like what Airbnb or Uber have on building a platform for a vertical business.”
In the Greater China region, Blockchain is still engaged in large financial institutions. Terence Yeung, Chief FinTech Officer, Moneysq.com, explains that large banks or insurance companies are developing various way to leverage the technology to stay competitive: “By creating more innovative value proposition that may disrupt the market.”
“For example, the way to make a transaction go online across multiple parties via smart contract. It is still yet to come to smaller players, or indeed the size of the ecosystem is still small for SME based environment so there is still room for a lot to come.”
An advantage of Blockchain is that its nature enables trust to be built across businesses. “There are two ways of establishing trust,” says Terence. “One way is to spend years to know your partner – when you know the person long enough, the chances are that trust can be built on it. The other option is to leverage Blockchain using its share ledger nature.
Some people say that having a contract can establish trust but Terence doesn’t agree as a legal contract is not trust, but one can claim for penalty if what is obligated is not fulfilled.
So, in the finance field, Blockchain can enable a lot of business proposition since trust can be enabled with the services being offered. “Now it is time for financial industries to find more innovative ways to disrupt the market with new ways of doing the old thing.”
However, Terence adds that businesses need to watch out for transaction overheads, including forex risks and overheads, cross border legal jurisdiction risks, and potential pushbacks from the old methods.
Currently, Terence is getting more parties to enjoy the benefits of Blockchain. While this technology can be used by large companies, it is also applicable to many others, including smaller businesses. “The click is on how the mass can be collaborated into an ecosystem. The ecosystem using Blockchain will be an interesting opportunity to seize the chance like what Airbnb or Uber have on building a platform for a vertical business.”
“Blockchain can create much bigger disruption than these two companies, given the right mode of execution.”
Terence Yeung, Chief Fintech Officer, Moneysq.com will be speaking on:
Blockchain - Sharing on implementation experience in Greater China Region
13:45 - 14:05 | Thu 11th Oct
Fintech and Blockchain Theatre