It is now pretty well established that blockchain technology has huge potential - especially where online transparency and safety are concerned.
What is Blockchain Technology And Why is it So Important?
It is now pretty well established that blockchain technology has huge potential - especially where online transparency and safety are concerned. In the grand scheme of technological applications, development, and even for every other sector out there, blockchain will be instrumental in the coming years and decades. Industry leaders are already heavily invested in this technology, and for very good reason.
And, most people will associate blockchain technology with cryptocurrency like Bitcoin, but the fact is that the technology applies to a far wider spectrum than just digital currency. The truth is, blockchain tech is probably the greatest thing since sliced bread. This is why it is important to look at what exactly blockchain technology is, and what the applications are. Furthermore, what will the future hold for blockchain technology?
The Blockchain Market is Growing Exponentially
According to Statista’s statistics, “Forecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 39 billion U.S. dollars in size by 2025.” Since just 2018, only in the span of three years, according to the same statistics the blockchain technology market has grown from $1.2 billion to $7 billion now in 2021. The next three or four years will be historical for blockchain.
Blockchain Use Cases Statistics
Another very telling statistic is use cases for blockchain technology. According to a Statista survey, almost 50% of respondents stated that they are focused on using blockchain not only for cryptocurrency but for “secure information exchange.”
What is Blockchain Technology?
After the creation of Bitcoin by the mysterious persona known as Satoshi Nakamoto, blockchain technology was revealed to the public. It is a revolutionary system that is transferred via the underlying P2P or Peer-to-Peer protocol. The key process that distinguishes blockchain is the fact that it is "decentralized." The key part of being decentralized is that; the digital transactions and assets using decentralized technology do not involve any third party, and are secure and transparent. Blockchain data cannot be deleted or modified after being created. Another key part of blockchain technology is distributed ledgers.
This is the first time in human history that technology so powerful in the sense of transparency, security, and fraud-free peace of mind, has been available to all of us. A traditional centralized system does not have anywhere near the stability or security of a blockchain process.
Blockchain is distributed via P2P, which is a system of computers talking to each other and sharing information -much more anonymous and safer than a single client-server solution. With P2P, there is little chance of data loss because if one computer in the network goes down, another picks up the transmission. Most importantly a decentralized system has no authority looming over it and blockchain is highly encrypted meaning that cryptographic algorithms take care of the security of the data.
What Are The Applications For Blockchain Technology?
Blockchain is a serious revolution for the entire industry. There are so many practical uses for this technology at the moment. This includes sectors such as; IoT, logistics, supply chains, education, and even healthcare. Any sector that stores data, especially sensitive data, is going to benefit to no end when using blockchain processes.
Here are some applications where blockchain is used today;
- IoT - blockchain will reduce data breaches in mobile smart connected devices
- Smart contracts - blockchain can even be used to secure contracts between parties
- FinTech - blockchain allows almost immediate, secure financial transactions
- PI or personal information - data breaches can be reduced with secure ledge storage
- Media industry - quick transactions and protection of copyright and royalties
- Industrial applications - supply chain monitoring
- Medical industry - safe and accurate record storage as well as tracking of medicine
- Government - blockchains added transparency in cases like voting
- Cryptocurrency - safe digital exchange of currency tokens for all
Blockchain is a game-changer because it will remove the need for third parties and middlemen in most cases. In any industry that it is applied, blockchain removes the need for extra fees incurred by these third parties and middlemen like consultants, lawyers, banks, and government agencies.
Blockchain is a revolutionary step for society, in terms of data flow and data security. It’s up there with the advent of credit cards, high-speed internet, 4G, and the internet itself. Comparably, blockchain is just as revolutionary as artificial intelligence. It is one of those rare, evolutionary steps that mark technological history. It is going to change how we work, live, and interact by making even trivial processes safer and quicker. Blockchain is also going to present serious challenges for traditional systems of governance because governments are going to have to give over a lot of control thereby loosening their surveillance and control over citizens.
According to the World Wide Web Consortium (W3C), the international community that takes care of internet standards policies, blockchain technology is also going to present some challenging questions for the world. The following are questions from W3C’s Blockchains and the Web Workshop on Distributed Ledger on the Web;
- What emerging capabilities could blockchains enable for the Web, such as distributed identity management?
- How does this fit into the same origin security model of the Web?
- What are the privacy implications, especially when talking about identity management?
- Who are the key stakeholders (individuals, organizations, and industries) involved to make sense of the blockchain landscape?