ariaa reeds

ariaa reeds

Ariaa Reeds is a professional writer who curates articles for a variety of online publications. She has extensive experience writing on a diverse range of topics including business, education, finance, travel, health and technology.

BusinessTechnology

Blockchain Industry’s Potential to Change the World

blockchain
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Blockchain, as a disruptive technology, has transformed the world of digital transactions significantly in the recent past, and, it is now revolutionizing other industries too. Industries that have been affected lately, by the introduction of blockchain technology comprise music, travel, real estate, insurance, health care, energy management, government & public records, among many others.

Blockchain tech. global market size (2018-2025)

Blockchain tech. global market size (2018-2025)

Source: Statista

The market size of the technology, worldwide, has grown manifolds in the last five years, and the forecasts say that it will rise further in the near future. As per Statista, the renowned German market-research firm, by 2025, the global market for blockchain technology will surge to a whopping $39 billion. The financial sector had been the biggest beneficiary of blockchain to date and had been the biggest investor in the said technology, over the years. Approximately 60% of all blockchain investment comes from the finance industry.

The expanse of Blockchain Across Industries Will Lead to Employment Generation

The future seems intensively bright for blockchain career aspirants. There will emerge millions of new employment opportunities in the said field. But, you must possess the extensive skillset that would be required in the blockchain job roles. It would be advisable to enrol into blockchain professional certification programs, available online that offer great value. Blockchain certifications are known to instill industry-relevant skills into the aspirants in a quick time. And that, significantly improves their job-readiness.

Read This Also: HOW BLOCKCHAIN WILL REVOLUTIONIZE HEALTHCARE

Expected Global Spending on Blockchain Solutions

Statista says, in 2020, the worldwide spending on blockchain-based business solutions will soar to $4.3 billion. However, the growth in spending on blockchain solutions will get hampered a little because of the COVID, but will still be considerably high. The forecasted spending has been found to be 60% more than what it was, the last year.

Blockchain Holds the Capability to Revolutionize the World Economy

We will discuss here, how is the said technology going to change the way, the business works across the globe. Blockchain, in the near future, will successfully facilitate tracking and collaboration of all sorts of transactions. It will provide for tamper-proof privacy protection and will act as a unique platform that could be trusted, and that only entails the truth.

Blockchain Will Take Away the Ownership of World’s Digital Data from Tech Giants

Blockchain industry holds the potential to challenge the ownership of personal digital data that a few companies enjoy at present, like Google, Amazon, and Facebook. All these tech giants monetize our personal data and sell it to a variety of other companies to generate profits from themselves.

Data privacy gets badly hurt in the process, and that had been a pain point for the entire world, and its citizens, for long. Blockchain has, what it takes, to fight against our digital privacy rights. Breaching on our privacy rights, is not just the big tech firms, but the governments too, that spy on us, leveraging our personal digital data.

Blockchain Can Help Give Birth to the Second Generation of Web

What if there gets originated the second generation of web, where there exists no Facebook, Google, Amazon, or any other data-hungry digital site, or social platform? Blockchain can help build a completely new version of the web, free of data-stealing sites. The unparalleled privacy protection offered by blockchain would follow a peer-to-peer model of data exchange, whether it’s a monetary transaction or media-sharing among individuals.

In that case, if you send money to your friend digitally, you will not need an intermediary body (a bank, or a financial service firm) to regulate that transaction, neither a governmental entity to check on your identity. Everything will work on a trust protocol in a system like this, with no third-party interfering, or taking their commission, while we perform a trade, or exchange money. To say the least, it would be revolutionary!

Parting Words

How about a world, wherein each one us has our identity stored in a black box powered by the blockchain? Whenever we perform a transaction, it will provide us with the limited information necessary to execute that specific exchange, and will collect and store the related data securely on it. You will have the right to keep your data private or to monetize it, as and when you wish. It would be a whole new world of hope and prosperity.

Business

How are PE Firms Gearing Up for a Potential Recession?

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Private equity is one such sector that has endured the adversities of the COVID-led economic downturn quite well, compared to any other industry. Since the great recession of 2008, private equity in the US had been on an alert for facing a situation just like this. Remember, that the year previous to 2020 had been highly successful for private equity wherein, it raked in $800 billion in varied deals. It’s literally sitting on a huge pile of dry powder.

As per a recent Statista survey, the financial services sector, and especially, private equity, had been found among the least affected in terms of bearing business loss and facing the heat of the corona-led crisis. While the worst-affected business domains were manufacturing and travel.

Preparation Measures Enforced by the PE Firms Against Economic Slowdown

Cautious Selection of Industries to Invest Into

PE firms, in the times of the corona pandemic, have started refocusing on non-cyclical industries that are less vulnerable to any form of a financial crisis situation. Their key targets, at the moment, are industries that are recession-proof. And that’s the sole reason for their soaring interest in buying stakes at technology firms or the companies in the business services sector.

The top private equity firms are completely avoiding the highly-vulnerable retail and energy sectors as per a heavily-brainstormed investment strategy plan amid the recession.

Expert Advisory is Being Leveraged Optimally

US private equity firms, in the times of the current COVID-led crisis, are continually seeking expert guidance. In the last six months, each investment decision taken by the private equity industry in the US had been finalized after a prolonged discussion with the industry advisors.

Portfolios across a range of industries are being managed with extensive care while taking in the loop the experts of the respective industries. By concentrating on the portfolio-management now, the best private equity firms are ensuring to keep the solutions ready, in case, the pandemic lasts longer than expected.

COVID-19 impact index by industry - minor (1) to severe (5) in 2020
COVID-19 impact index by industry – minor (1) to severe (5) in 2020, Source:Statista

General Partners (GPs) are Rising Up to the Occasion

GPs, that are the key administrators in a PE firm, are busy strengthening the balance sheets of their respective firms, at the same time, cross-verifying the skillset of investment & operations teams, as preparation to the future challenges. Recently, efforts have been made by private equity investment professionals who are working as general partners, to soar up the permanent capital, as a safety precaution to liquidity-dearth.

PE Firms are Amping up Capital-Lending

Private credit strategies are among the most beneficial to PE firms in the times of a crisis, given the limited partnerships they are able to buy in distressed companies to whom they lend the money to. In the long-run, the returns received out of this limited partnership fund model are huge. The strategy is beneficial for both the PE firm and the company borrowing the money in return for a limited partnership offer.

PE Firms Seeking Opportunities to Mindfully Deploy Dry Powder

Given the number of limited partners (LPs) that a PE firm these days constitute, there gets collected a huge pile of cash ready to be deployed in new investments. The contributors to the liquid capital that the PE firms hold comprise sovereign wealth funds, institutional funds, family offices, and the high net worth individuals.

PE funds, currently hold $1.4 trillion that is instantly deployable. Adding the funds collected from other asset classes, i.e. real estate, infrastructure, credit, and growth capital, it soars up to a whopping $2.6 trillion.

Concluding Thoughts

It’s true that there exists a dearth of employment opportunities in private equity amid the ongoing pandemic. There is almost zero availability of private equity jobs at the moment. But, the said sector has managed the crisis with a seemingly less strain. PE, after the great recession of 2008, has evolved into a much mature, and better-resourced sector with a better sense of fighting a financial crisis situation.

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