Kleiner Perkins: Five reasons to invest in blockchain

Our team at KPCB has led a $12.5 million investment in Align Commerce, a company that uses blockchain technology to provide cross-border payment services.

On a recent episode of the Venture Capital Podcast, I spoke to Align CEO Marwan Forzley and KPCB Edge founding partner Anjney Midha about how small businesses can use blockchain technology to conduct global transactions, posing a challenge to traditional financial institutions such as banks.

This shared public ledger makes it possible for people to conduct transactions over the Internet, opening up a new global market for small and micro enterprises and a host of new businesses.

Financial transactions are no longer centralized

Blockchain technology is a fundamental change in computing that has fueled the development of cryptocurrencies such as Bitcoin. Unlike banks, no single person or organization owns blockchain technology. Every transaction is public, and people in two different parts of the world can make payments as if they had an internet connection. There is no centralization here, which completely subverts the cross-border currency transaction model.

Small and micro businesses no longer need banks

Blockchain technology provides a solid foundation for the future global payment infrastructure. Traditionally, big banks have monopolized financial transactions in the United States and are not good for small and micro businesses.

Using blockchain for cross-border payments

Traditionally, small and micro business owners served the local market. However, an accessible technology platform has allowed a local market to expand to a global market. As a result, the e-commerce market has risen, especially after the success of Alibaba and eBay. As business moves to the global market, blockchain technology will unlock more opportunities.

Developers and investors are investing in blockchain technology

At first, I was a little frustrated to learn that the companies were started by currency speculators rather than technology companies. However, Align commerce changed my view of this technology. Venture capital-backed companies are rising, and the power of developers is on Github. Of course, consumers need to be patient and wait for developers to make good apps for them.

Blockchain applications are global

Imagine being able to pay via an app without wire transfers. Align Commerce is building a universal platform for all industries, a platform that can cross borders. It serves companies of all sizes, as long as they have international payment needs.

Original article: http://www.kpcb.com/blog/the-real-reason-why-blockchain-technology-is-worth-investing-in
By Randy Komisar
Translator: gsj
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/5-reasons)