Blockchain technology can make a world of difference for Hong Kong companies
China’s central bank is studying new innovation that has the potential to keep information secure and create a permanent imprint to avoid fraud
Blockchain, the technology behind digital currency Bitcoin, could soon be the go-to technology for Hong Kong companies to solve non-financial problems like simplifying loyalty schemes, providing decentralised versions of Airbnb and weaning companies off Facebook log ins.
Essentially a distributed ledger, blockchain is a decentralised consensus resilient network which appeals to financial institutions as its transparent ledger is one of the most secure systems built to date. Yet beyond simplifying transaction records, it can be used to record loyalty points, rent accommodation or rid companies of their reliance on Facebook.
Bitcoin exchanges in Hong Kong are now repositioning themselves as blockchain solution providers to help companies access tools based on the technology.
“One of the most common uses right now is as a loyalty programme, so instead of issuing a coin, [a coffee shop] issues a point,” said Ken Lo, chief executive officer of ANX International, a Hong Kong-based blockchain services provider .
“Because it’s on the blockchain, you know the two points that [customer] has, he can’t copy and duplicate it and get more coffee and you have very low overheads.”