Since its conception in 2008, blockchain has developed into one of these incredibly flexible technologies that can efficiently be used to do anything. The incorporation of blockchain has moved far exceeding cryptocurrencies alone and today is not just bitcoins any longer. It is so adaptable and capable that it has all the potential to convert a mainstream technology by working multiple roles and functions, from improving security to streamlining co-operation, and even enhancing the daily lives by making the world a better place. One can say that this technology is used in practice in the upcoming years by tech experts, governments, and corporations.
As per a Gartner report, as more businesses and organizations invest in blockchain-related projects to be performed in their companies, this technology’s value-add will increase to slightly over USD 360 billion by 2026, and up to USD 3.1 trillion by 2030. Bank of America predicted that companies such as Oracle, Amazon, and Microsoft could profit from the adoption of this technology, generating a USD 7 billion market as it converts into the mainstream.
Transforming the Financial World
Financial transactions are, still today, remarkably complex processes – particularly cross-border ones. The requirement for security whenever funds are transferred is explicit, but the infrastructure and emissaries utilized by the banks are still the same ones that have been in the position since the ’70s. Right now, digitization assists one sole purpose: to advance up sorting information in private databases. Smart contracts use blockchains to practice complex and ultimately secure legal agreements and digital connections. The inherently strong importance on transparency and security of the assigned ledger can tremendously improve the current system, beginning from the fact that it can help build immediate connections between two international correspondents and leaves out any middlemen in between by disintermediation.
An exciting application of the decentralized ledger is practicing it to “tokenize” real and financial assets and convert anything into liquidity. Tokenization has a meaningful impact on markets and can remodel the finance world – the cryptocurrency market has presently grown to USD 287 billion, but the total value of illiquid assets caps at a whopping USD 11 trillion. Tokenization can encourage investors to trade on these assets without the package and the complexities of paper. Blockchains can also assist governors by serving as a fully available system of record where only compliant activities can be authorized automatically.
Protecting Privacy
Due to the subjective nature of the distributed ledger, there is no centralized point of vulnerability for hackers to target to take away any private data. Digital identities can be managed to collect all kinds of information about an individual, such as social security info, and credentials which will be deposited in the safe environment provided by the blockchain.
The digital identity can perpetually be verified with a single key with no requirement for paperwork or documents, and no obligation to provide any personal information. Businesses that actually trade information by taking private data for free and then resell it will be removed of this absurd power, and power will be given back to users. Unbanked personalities will enjoy a new verifiable digital identity and will have passage to the financial services they are currently banned from.
Increasing Peer-to-Peer into the Future
Few people have been as innovative and pioneering as the contrivance of the peer-to-peer (P2P) networks. A practical, scalable and productive solution to reduce the cost of distributing files through the initial days of the internet, P2P has resulted in a powerful grassroots movement to combat the overwhelming hunger of the largest multinational organizations of the world.
It is not so demanding to see the loose thread that connects blockchain to P2P – and it was only a subject of time before one of the consequential players of this freedom-based manufacturing would build a bridge to cross that divide. Given the exact numbers of torrent users, the presentation of these crypto coins can genuinely revolutionize the markets of a scale of the computational means exchange.
