Saving time, money and avoiding third-parties as possible have been priorities of blockchain since its inception. A recent State Farm USAA deal sheds some light on how companies will start to rely on blockchain tech in the near future.
The State Farm USAA deal will aid the companies if respective customers of theirs get into an accident. One of the companies will have to cover the damages and the inter-company payment will be settled via blockchain.
Both companies manage billions of dollars in claims every single year. Blockchains will be able to settle that amount…in minutes. A more clear and simple perspective on regulations and stablecoins have grabbed the attention of many traditional institutions.
Last year, State Farm shared that the company is very interested in blockchain technology and is working on a new project. There was no mention of the State Farm USAA partnership anywhere until last week where everything became official.
The project will easily save both companies millions of dollars. The constant sending of checks will be replaced by the blockchain system which will quickly handle all settlements.
The State Farm USAA deal is the first of many
Saving time and money is something that is in the interest of all companies. It’s almost certain that the State Farm USAA deal will not be the last deal this year.
The partnership has decided to make use of the blockchain tech called Quorum. Due to the nature of insurance companies, this blockchain tech offers many applications, some of which are really unpredictable.
Quorum will be used to keep easy track of almost every aspect of vehicles and make quick payments to customers. This also allows a very transparent accountability process due to the blockchain tech’s very basic design.
Many permissioned sidechains have also popped up. They allow corporate users the option to publicly display less information. Corporate users will however, also enjoy the other benefits offered by the blockchain.
This is a great time for blockchain adoption since more companies are bound to follow the State Farm and USAA deal. Industries are testing the water for the inevitable large-scale adoption that will follow in the next 20-30 years.
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