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Will Blockchain Technology and Wise Contracts Steal Jobs from People?
Enlargened automation in banking and financial sector by implementing blockchain technology based wise contracts may not have a significant influence on employment opportunities in the sector.
Bitcoin’s underlying blockchain technology has already expanded from just being a ledger, keeping a record of all transactions happening over the network to a widely adopted technology across industries. Clever contracts based on blockchain technology can be used to automate various process across industries.
The major application of blockchain technology presently lies in the banking and financial sectors, involving a lot of time-consuming repetitive processes. By creating wise contracts that are programmed to automatically execute certain processes when the predetermined conditions are met, lot of resources in terms of time and manpower can be saved. Automation can save these institutions a lot of money. However, there are concerns about the effect of enhanced automation. Some fear that the use of wise contracts in the banking and financial sector may lead to a reduction in jobs.
Clever Contracts and Industrial Robots
The effects of enlargened automation in the banking and financial sector can be compared to the similar script in the manufacturing sector. Surveys conducted to probe the effect of enlargened automation in industries on job positions and opportunities have reported no significant switches until now. However, a explore on the influence of industrial robots on employment during the period of one thousand nine hundred ninety three to two thousand seven in seventeen countries has indicated a slight increase in overall wages due to enhanced automation.
According to a report, the use of software robots to interact with a rock-hard’s back office system can cost the company as less as $Two.70 per hour. But unlike humans who are assigned to do the same job, these software robots can operate round the clock and process massive amounts of data. The productivity gains from using an automated system to maintain a company’s financial system can achieve productivity gains by over ninety percent with one hundred percent accuracy, says another report by Tata Consultancy Services. The same report also states that robotic process automation in insurance sector to validate claims can lead to almost eighty percent reduction in transaction times.
Automation of any form, whether it is robotic process automation using software programs or self-executing clever contracts for trade settlement and other financial operations, can’t substitute customer facing operations, states a latest article in one of the financial magazines. Also, enlargened automation in various sectors has led to an increase in jobs that require monitoring and maintenance of such systems.
By drawing parallels inbetween automation using industrial robots, software programs, and clever contracts, we can conclude that the influence of blockchain technology on employment may not be significant. However, there will be a significant switch in job profiles of the future. A present day employee in the financial sector who expects to remain employed when this shift happens, should keep up with the switches in the technology and upgrade his/her abilities.