Where is Blockchain Technology in 2020?
By Noama Samreen on The Capital
“This is the beginning of the decade of Blockchain and I think in 2020, we’ll start to see the global recognition of crypto assets in the FS industry.” — Antonio Senatore, EMEA Blockchain Lead
Not very long ago, in 2008, Satoshi Nakamoto (popularly believed to be a group of people and not a person) coined the phrase “Blockchain.” The idea behind implementing the Blockchain technology was to enable a public transparent ledger for the transactions of Bitcoin.
The term Blockchain is quite self-explanatory as it is a series of connected blocks. These blocks are linked cryptographically using the concept of a Merkle Tree, where each new block stores the hash of its preceding block. The key feature of this technology is the storage of data in a decentralized database without a central authorizing agency. A Blockchain ensures that a transaction between the sender and the receiver is tamper-proof.
Key Features of Blockchain Technology
Blockchain technology has been here for quite some time now, however, the key features of this technology have only been praised rather than criticized.
- Decentralized: A Blockchain network does not have a central authorizing agency and therefore no single point of failure.
- Digital Ledger: It maintains a record of all the transactions that take place on a peer-to-peer network.
- Shared: Users of this technology can share the encrypted data stored in a blockchain network without compromising the integrity of the data.
- Immutable (or, Tamper-proof): Earlier, the researchers used the term “immutable” to describe the nature of data stored onto a blockchain network. However, tamper-proof is a better way of describing this feature as the blockchain technology provides enhanced traceability of any changes made to a block.
- Smart Contracts Application: Blockchain is not only used for recording transactions of cryptocurrencies but also to implement contracts between two parties. In simple terms, a smart contract is used to record conditions that are to be fulfilled before a transaction is completed.
SWOT Analysis of Blockchain Technology
Regardless of the complexity associated with Blockchain technology, it is undoubtedly very valuable as its applications as a distributed transparent ledger is limitless. Its advantages range from higher user privacy and data integrity to reduced cost of implementation.
Evolution of Blockchain Technology-based applications
Since the origin of Blockchain Technology in 2008 and the mining of the genesis block on the bitcoin network in 2009, Blockchain technology has had some significant milestones.
Earlier, Blockchain technology was mostly talked about in regard to Bitcoin. However, it is important to note that, Blockchain technology was designed for Bitcoin and they are not the same, instead Bitcoin is a cryptocurrency based on blockchain technology. One of the other applications of blockchain technology is Ethereum Smart Contracts which involve conceptualizing digital contracts and logistics.
Today, we see an opportunity for this technology’s users to move forward from the experimental phase of testing Proofs-of-Concept and adopt more significant projects for real-world solutions in multiple businesses. There is a significant change in the targetted industries for this technology as more businesses in Healthcare, Farming and Supply chain management industries are looking for solutions using Blockchain Technology.
Also, 2020 has seen a rise in tokens as well. The financial industry can benefit from tokens as they are more accessible, cheaper, faster, and vastly increasing the volume of trade.
“Ethereum tokens can represent anything from a physical object like gold (Digix) to a native currency used to pay transaction fees (Golem)” — Linda Xie at The coinbase blog.
Conclusion
Blockchain Technology has the potential to completely transform our everyday lives, business, also politics. One needs to be patient and consistent in learning the developments of this technology to find the opportunities that this technology brings along with it.
