Since its conception in 2008, blockchain has become one of those incredibly flexible technologies that can be used effectively for anything. The incorporation of blockchain has moved far beyond cryptocurrencies and is no longer just about bitcoins. It is so adaptable and capable that it has the potential to turn a consumer technology into one that works multiple roles and functions, from enhancing security to streamlining cooperation, and even improving daily life by making the world a better place. It can be said that this technology will be practically used in the coming years by technology experts, governments, and corporations.
According to a Gartner report, as more and more businesses and organizations invest in blockchain-related projects to be implemented in their enterprises, the value of this technology will increase to just over 360 billion USD by 2026 and up to 3.1 billion USD by 2030. Bank of America has predicted that companies like Oracle, Amazon, and Microsoft could benefit from the adoption of this technology, generating a market of 7 billion USD as it transforms into the mainstream.
Transforming the Financial World
Financial transactions today are remarkably complex processes – especially those that are cross-border. The need for security whenever funds are transferred is explicit, but the infrastructure and emissaries used by banks are still the same as they have been since the 1970s. Currently, digitization serves one singular purpose: to advance sorting information into private databases. Smart contracts utilize blockchains to engage in complex legal agreements and ultimately secure digital connections. The intrinsically strong emphasis on transparency and security of the assigned ledger can significantly improve the current system, starting from the fact that it can help establish immediate connections between two international correspondents and leave out all intermediaries between them through disintermediation.
An exciting application of the decentralized ledger practices for “tokenizing” real and financial assets and converting everything into liquidity. Tokenization has a significant impact on markets and can renovate the world of finance – the cryptocurrency market has currently risen to 287 billion USD, but the total value of illiquid asset caps stands at 11 trillion dollars. Tokenization can encourage investors to trade these assets without the packaging and complexities of paper. Blockchains can also help governors by serving as a fully accessible recording system where only compliant activities can be automatically authorized.
Protecting Privacy
Due to the subjective nature of the distributed ledger, there is no centralized vulnerability for hackers to target to eliminate private data. Digital identities can be managed to collect all kinds of information about an individual, such as social security details and identification information that will be stored in the secure environment provided by blockchain.
Digital identity can be perpetually verified with a single key without any requirement for documents or paperwork, and no obligation to provide personal information. Companies that actually trade information by taking private data for free and then reselling it will be stripped of this absurd power, and the power will be returned to the users. Unbanked individuals will enjoy a new verifiable digital identity and will have access to the financial services they are currently barred from.
Increasing Peer-to-Peer in the Future
Few people have been as innovative and pioneering as the implementation of peer-to-peer (P2P) networks. A practical, scalable, and productive solution to reduce the cost of file distribution during the early days of the Internet, P2P has led to a powerful grassroots movement to combat the overwhelming hunger of the largest multinational corporations in the world.
It is not demanding to see the loose thread connecting blockchain to P2P – and it was only a matter of time before one of the significant players in this freedom-based manufacturing would build a bridge to cross this divide. Given the exact number of torrent users, the introduction of these cryptographic pieces can genuinely revolutionize marketplaces on a scale of computational exchange.
