Blockchain emerged as a network that would facilitate secure transactions for the cryptocurrency Bitcoin. In the beginning, it was merely used as a foundation for digital tokens. Eventually, it became apparent that blockchain technology could have wider applications in many different industries. Even though It has already pushed the boundaries of traditional business for multiple startups and enterprises, it’s still in its infancy.
What are the prospects for blockchain technology? Will it have the same effects as the ‘internet’ back in the day?
What is blockchain technology?
Blockchain technology is a decentralized public ledger that makes it possible to securely record transactions or data. It eliminates intermediaries and speeds up processes, which makes it an efficient alternative for various industries.
Blockchain is a digital ledger that stores data in its blocks. Every transaction on the network is irreversible, simplifying the verification process for the transactions. It doesn’t have a single authority that would oversee its operation. In fact, it’s ruled by collective interests via a peer-to-peer network and a server.
Such characteristics of blockchain make it accessible to everyone around the globe. It creates the foundation for a fair economy, paving its way into financial and legal systems.
Does blockchain have real prospects in the future?
Blockchain has promising prospects that are likely to be implemented in the upcoming years. Not only is it being adopted by businesses, but it’s also getting approved by the governments.
El Salvador adopted bitcoin as a legal tender in 2021. The UK is planning to approve stable coin payments in its attempt to compete on the crypto scene. As governments start considering launching national cryptocurrencies, blockchain development takes a huge leap forward. Implementing national cryptos would facilitate local economies and allow ruling bodies to take advantage of secure transactions.
Blockchain technology is being widely utilized in industries such as healthcare, finances, logistics, supply chain management, insurance, and even charity.
These innovative approaches seemed to be part of the sci-fi world just a couple of years ago. Now, blockchain technology is likely to define our future.
Viable use cases for blockchain technology
Blockchain technology has multiple viable use cases, however, smart contracts, identity verification, business solutions, and financial transformation are the most prominent applications.
Smart contracts are coded programs that operate on a blockchain. They combine a set of protocols that dictate the conditions. Unlike legal agreements, smart contracts are fully automated. They are self-executed when the specific conditions are met, speeding up transactions and making them more secure.
The applications for smart contracts could be infinite as they can be useful in virtually every industry. The most logical use case, however, is the legal field. Several states in the US have already approved the use of smart contracts in specific situations. With further development, smart contracts can automate minor legal procedures.
Blockchain technology is synonymous with security as it provides a unique verification system. Each user of the network goes through the individual verification process, with data being protected with a personal key. It utilizes a specific code instead of easy-to-crack passwords. Consequently, it simplifies the verification process and protects your digital identity from being stolen.
Thanks to such qualities, this technology would be a great alternative to the current voting system. It would allow the voters to verify their identity while making it impossible to interfere with the votes.
Be it real estate, supply chain management, or transportation, blockchain technology can transform business by providing up-to-date solutions. By eliminating middlemen, it can significantly speed up processes that would otherwise take weeks or months. It can also provide digital storage for information and improve communication between the parties.
Blockchain technology can bring about the biggest transformation in financial systems. It can substitute traditional institutions, remove intermediaries, and make financial services accessible for everyone. It’s currently the most viable solution for creating a fair economy and facilitating growth in developing countries.
Regardless of skepticism, the benefits of blockchain technology cannot be ignored or denied. It has the potential to transform traditional industries and improve execution for every party. It’s hard to say what happens in the future, yet it’s obvious that blockchain will start dominating many aspects of our lives.