The Future of the Blockchain Technology

Nowadays Blockchain technology is the center of attention in current news headlines. The technology has been deemed “disruptive,” and the future of Blockchain is commonly associated with one that could “alter life as we know it.” However, there remains a bit of confusion about what exactly Blockchain technology is, where it’s used, who's using it, and how it’s developing. You will find out some important insights on the future direction of blockchain treading.

What is Blockchain?

The principles of Blockchain technology are not as alien as they may appear. A Blockchain is a decentralized and secure database built over a secure network used to store data and relay information. Blockchains record and relay information and transactional data in blocks. Parties involved in these transactions can remain anonymous while enjoying security, transactional transparency, speed, and cost efficiency.

How Does Blockchain Work?

What does a blockchain look like? Data in a Blockchain gets recorded in a linear matter, with each new block within a Blockchain containing data from all previous blocks. Imagine a block to be sort of like a sheet of paper, filled from top to bottom and front to back, with a date and time but with a long code written across the sheet.

The data within these blocks is encrypted through the use of complex cryptographic principles and security algorithms.

Before being added to a Blockchain, transactions must first pass validation. This validation is performed by miners. For their efforts, miners enjoy monetary reward in the form of cryptocurrencies, such as Bitcoin.

As many of our frequent readers may have noticed already, there is quite a bit of hype surrounding the uses of Blockchain technology - but why? For starters, it’s a technology that will change the world. It can provide decentralization. The data contained and relayed within a Blockchain architecture cannot be controlled by a single entity. Transactions and information stored within are immutable and transparent. Once a transaction is added, it can’t be changed, taken down, or hidden. With regard to transparency, anyone can see what was sent and when. One can assume that there are two individuals behind a Blockchain transaction, but not exactly who and why.

Development and Adoption of Blockchain Technology in the Future

While it’s not quite clear where the adoption of this technology may land in the far future, it’s quite evident that nations and industries are flocking to it.

Potential Use of Global Blockchain Technologies by Industries and Society

There are myriad sectors that can, and do, derive benefits from blockchaining, ranging from entertainment to philanthropy.

Financial Inclusion: There are many individuals living in underdeveloped countries without access to banking services. Blockchain technology can help solve this problem, as it can provide access to transactions and end the need for a physical infrastructure. This is to say - Blockchain powered financial inclusion. Aside from this, Blockchain technology can be used to improve transactional speeds, and decrease banking fees and the possibility for human error or mischief when handling finances.

Democracy and governance: Blockchain and governance go together quite well. Voting, crowdfunding, communal services, registrars, and more can be put on a Blockchain database for increased transparency. Can Blockchain tech put an end to corruption? It would take time, but it’s definitely possible.

Internet of Things (IoT): The Internet of Things (IoT) can be described as a network that connects physical devices such as home appliances, motor vehicles, sensors, as well as other electronics, and allows them to communicate with one another. There can, however, naturally, still be lapses and errors in communication due to power outages and data leaks. IoT Blockchain uses can help reduce data lapses and improve the transparency and security of communication between devices as well as data storage. The future of Blockchain in the IoT industry is one with many benefits.

Retail: Blockchain and retail go hand in hand. The distributed ledger technology can be used to improve supply chain goods tracking, and to prove the authenticity of goods by providing the ability to discern fake items from authentic ones by scanning a barcode.

Insurance:There are many Blockchain insurance use cases. The secure technology can be utilized to both detect and prevent fraud in the industry, and improve organization with regard to property insurance claims. It can also simplify user onboarding for new policies, or even open up the possibility of having a universal insurance database.

Digital Identity: There are several projects targeting Blockchain digital identity management. The technology can significantly reduce identity theft and fraud, and promote transparency. It can also reduce the threat of third party involvement in sensitive personal data.

Agriculture: Despite there being fewer uses of Blockchain in agriculture than in other industries, progress is still being made and is focused on eliminating the need for middlemen in agricultural supply chains. Additionally, many records on food certificates, sustainability, and safety are recorded on paper and in private databases. This method of data storage can lead to excessive managerial costs and opens up a vast amount of opportunities for corruption and fraud. Blockchain tech can aid greatly in reducing fraud, decreasing costs, and promoting efficiency.

Education: Blockchain in education can be used to create immutable performance records, transcripts, diplomas, certificates, etc. It can also provide more efficient means of accessing records and can also be used to help build recognition of achievements. The social impact of Blockchain tech is astounding.

Rentals and Ride Sharing: We’ve all heard of Uber; and while the service is definitely useful, there is a major drawback in that it is centralized and drivers must pay a fee to the Uber platform for each completed ride. Blockchain technology has the potential to revolutionize the ride sharing industry and to enable peer to peer car rentals and ride sharing.

Healthcare: The healthcare industry is one that is in desperate need of accountability and transparency. Blockchain technology can provide transparent and decentralized solutions for storing patient medical data, healthcare records, prescriptions, insurance plans, and coverages.

Entertainment: Blockchain can have a significant impact on issues that plague the entertainment industry such as copyright infringement, piracy, and content consumption. Through the use of the technology and cryptocurrencies, artists, writers, and musicians could distribute their creative content on a global scale, while retaining full control over said content.

Generally speaking, there are myriad sectors that can derive benefits from blockchaining. Businesses are frequently searching for Blockchain solutions that can be used to enhance their operations and help them to gain a competitive advantage. Due to the fact that incorporating Blockchain technology can be a daunting task, it makes sense to seek out expert help.

The future of Blockchain technology has the ability to end severe issues experienced by modern banks. As it currently stands, banks and their personnel manage all client funds and handle money transfers. Thus, they act as intermediaries. Where there is human involvement, there can be lapses in security and transparency. By their nature, Blockchain databases are more secure and transparent, and would reduce the possibilities for record-keeping errors as well as make transactions faster and cheaper for banks due to their decentralized aspects. According to IBM, banks are lining up to adopt the tech.

In terms of personal finance and payments, Blockchain technology and cryptocurrencies can rectify the need to rely on third parties (banking and financing institutions) for such purposes. Anyone with an internet connection, can create a digital currency wallet and carry out transactions on a Blockchain without having to adhere to regulatory oversight or any geographical restrictions.

If you need more information on this topic, please check out this article: The Future of the Blockchain Technology