Blockchain: The future of technology
Blockchain has garnered enough attention now. Synonymous with Bitcoin, cryptocurrencies, and another consumer tech that promises to keep personal identity hidden, Blockchain is on its way to becoming mainstream.
Here are some statistics which give us the foreseeable picture of the technology:
- Over 34 million Blockchain wallets have existed worldwide. In 2019, over 2 million people created a Blockchain wallet.
- 84 percent of executives believe Blockchain will be mainstream soon, according to a Deloitte survey.
- Spending on Blockchain solutions will reach 12.4 billion by 2022, IDC predicts.
- Nearly 32% of companies are in the development stage, according to PwC
Blockchain offers security. It is the most prominent attribute of the blockchain technology which makes it suitable for building secure applications and protect itself from malicious attacks. The security offered by Blockchain with its underlying encryption technique offers prospects that can be utilized across governance, finance, healthcare, and various other industry sectors.
Smart contracts built on Ethereum have paved way for secure, transparent and faster transactions, resulting in faster operations and increased efficiency in processes. Similarly, decentralization offered by blockchain offers a secure system for storing valuable personal data.
Considering past data wreckages, blockchain comes as a relief for data protection.
Using blockchain for transformation
Transformation is defined as, “a marked change in form, nature, and appearance”. Considering blockchain is used for building an innovative solution that brings positive change in operation efficiency, it is truly transforming the industry.
For instance, banks spend millions of dollars on interbank reconciliation ledgers. With the help of blockchain, R3 consortium is working on a scalable interbank reconciliation ledger which would enable banks to handle large volumes of transactions and other data. Further, the ledger will allow access to selected banks which can be used to verify transactions. Thus, making inter-banking a more efficient system.
Smart contracts enable automatic transactions without relying on a third party to adjudicate the transaction. Smart contracts can be easily written on a piece of block. Like traditional contracts, parties are bound under an agreement, in case of breach of terms, smart contracts don’t execute as they execute only when the set parameters in the code are met. Smart contracts reduce counterparty risk. This means, in case of breach of traditional contracts – the court can enforce the terms of the contract. However, smart contracts are preventive. They act on stated terms regardless, which binds the involved parties. Transactions will be executed only and only if the conditions in the code are met.
The supply chain is another sector that can benefit immensely from the blockchain. A supply chain is a complex and extremely fragmented process, which makes it time-consuming and inefficient. Using blockchain technology can improve the traceability of the shipment and make it more trustworthy. As there are growing concerns about the quality and origin of products, increasing transparency in the supply chain fosters a good customer experience.
The blockchain, overall, has been growing influential. Organizations are steadily realizing its true potential. Both its applications and usage is growing. Thus, leading to an increase in blockchain engineers as well.
Future of blockchain
The future of blockchain looks similar to what looked like for the dot.com era. Some companies perished, while some companies thrived and scaled to greater heights. However, the internet, as we know it today has flourished. Like every new revolutionary technology, blockchain has skeptics too. So far the technology has made several strides and industry leaders are still exploring ways to exploit the full potential of blockchain.
In addition to mainstream industries – retail, tech, finance – blockchain has shown benefits for life-supporting industries like pharmaceutical and medical care, a somewhat similar curve like the internet. Will blockchain meet the same fate as the internet?
Well, it is too early to decide.