Bitcoin recently sank to a new low. From 20,000 dollars at the end of 2017, the exchange rate has now dropped to below 6,000 dollars. What effect does this have on blockchain: Is the development of the technology not going so well after all?
I think it’s a good sign that bitcoin fell. Interest in the tokens has been very high in recent years and has caused a real hype. The virtual currency was therefore enormously overvalued, to some extent. Now that the mass rush is slowly coming to an end, the situation is normalizing. Industry can finally follow suit and start building up realistic and sustainable business models.
What potential is there in companies: Can we really call the technology a revolution?
The development that blockchain has seen is indeed revolutionary. Of course, technologies for decentralized structures, encryption or hashing already existed. But they were only cleverly brought together by bitcoin – and with this the individual pieces of the puzzle have finally come together.
For companies, blockchain means a new range of business scenarios. One example of this is the car industry: thanks to blockchain, insurance companies can offer customers far more contractual options. Because the driver can be tracked, the price of the insurance package can be adapted to his driving style. In addition, a higher rate can be calculated during the day than at night, because you would normally drive less at night.
What does Deutsche Telekom do with blockchain?
In the Deutsche Telekom Innovation Labs we are working on possible innovative scenarios. For example, we negotiate tariffs with telecommunications providers from abroad via smart contracts, blockchain’s computer protocol. This enables us to adjust roaming costs, for example in countries like the USA, to the needs of customers and to offer them price advantages. The Internet of Things, which goes hand in hand with blockchain, is also exciting to us: we can use blockchain to make the Deutsche Telekom networks secure against hacker attacks.
What other plans does Deutsche Telekom have: What will the technology be used for in the future?
Just as we offer telephony and the Internet, we are working on integrating blockchain into our ecosystem and providing the infrastructure for this.
The bottom line
Blockchain is indeed a revolutionary development that will completely change the business world. Even though the technologies for decentralized structures, encryption or hashing already existed – they were only sensibly brought together by bitcoin.
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