Experts believe that blockchain is set to impact our lives through its revolutionary technology. I believe it’s true, as the industry has grown so fast that 9 out of 10 people feel it will completely change the banking and financial industry.
But what is it and what can it actually do? It is funny, but not long ago, this phenomenon was just another technical idea, seen to be a reserve of the tech-savvy in our midst.
That, however, is slowly changing with more people showing interest and a desire to learn what it is all about. Simplified, blockchain technology is a distributed ledger on which all transactions in a peer-to-peer (P2P) network are recorded. It is decentralized and keeps transactions anonymous.
The use of blockchain technology has found its most recognizable use in cryptocurrency with Bitcoin being synonymous with what it’s all about. In fact, cybersecurity legend John McAfee predicted that this cryptocurrency will hit an all-time high value of $1M by 2020.
According to experts, blockchain will revolutionize and disrupt almost every other sector of the society. In addition to the banking and financial industry, there’s blockchain integration and use in sectors like cyber security, supply chain management, internet of things, insurance, among many more.
How Blockchain Technology Is Revolutionizing Our World Infographic Summary
Security is another aspect where blockchain technology is extremely beneficial, and according to BitFortune.net, many state agencies in the U.S. such as DARPA are investing extensively into blockchain, in hopes of reaping the security-wise benefits that it provides.
Why do all these sectors find blockchain technology useful to their operations? Well, it has to do with the many benefits businesses in these fields get from using applications and solutions provided by blockchain based projects.
For instance, the ledger provides an immutable and tamper-proof record that no one can alter at will. This helps guard against fraud and corruption in society. Other solutions like the use of smart contracts make it possible to have self-executing agreements that don’t need an intermediary. As such, businesses operate in an atmosphere of mutual trust and transparency.
The use of blockchain tailored products also helps improve efficiency and improve business performance. That explains why so many businesses and industries are adopting this new technology. Think of a typical cross-border payment. It takes more than three days and costs a lot more. In contrast, a cryptocurrency based transaction across borders takes minutes, often at very low or no cost at all.
Another interesting area where blockchain could also have great impact is the Internet of Things (IoT) field. Startups like IOTA are already exploring ways to make smart devices communicate with each other without human input. It is likely to alter how we interact with machines.
Since the inception of Bitcoin in 2009, blockchain based projects have sprouted in thousands. Although its growth is at the moment equivalent to what the internet was 20 years ago, cryptocurrencies are projected to mirror previous growth.
Though it is feared that cryptocurrency may experience a crash in the near future, predictions state that the entire crypto space will grow by 42.8% until 2022. This means that its technology will continue to revolutionize our society.
At the moment, most people view cryptocurrency as investment opportunities. However, there is a lot to learn about it. The infographic below has a lot that you’d find useful. Read on and learn.
Infographic Source: Bitfortune.net