Blockchain Is the Future of Technology: Five Reasons That Prove It
- In 2030, the business value added by blockchain will be more than $3.1 trillion
- In 2019, the amount of money spent on blockchain rose by 80% from 2018
- According to 86% of top managers, blockchain technology will soon go viral
Is it possible for blockchain technology to influence the future? Let’s look back on the past to find out!
Can you recall November 8, 2016? At about 8:00 p.m. IST, most Indians came home from work to a striking piece of news. The news had destructive consequences, and Indians were shocked: Narendra Modi, the infamous prime minister, declared the INR 500 and INR 1,000 currency notes illegal. When speaking, he referred to black money more than ten times, and the general public couldn’t overcome the shock.
About 86% of the Indian currency was destroyed in one day, and many citizens were upset for a long time. Lots of people wasted a lot of time waiting to withdraw the insignificant amount of money that ATMs allowed them to get at that time. The demonetization directly and indirectly caused a number of deaths, but the government still claims that it was a vital action to take.
Lots of people recall those painful times as the scam of the Punjab and Maharashtra Co-operative (PMC) banks. The financial institutions banned their clients from withdrawing money from their own accounts.
How is this event connected to blockchain technology? It’s alarming that governments control all the currency. That’s why cryptocurrency, together with blockchain, is seen as a solution. These two technologies were specifically created to reduce the overall control of daily transactions.
Blockchain Is the Future of Technology: Five Reasons that Prove It
Bitcoin and other cryptocurrencies created with the help of blockchain make it possible for transactions to be tracked, monitored, and controlled with the help of a distributed ledger. Due to this system and the decentralization, users are given more control and freedom while lessening the power of banks and governments. But it’s not just about technology. Thanks to blockchain, it’s possible to end the mediation between people and banks, boost efficiency in several spheres, increase transparency, and get rid of corruption.
There are five reasons why blockchain is the future of technology:
1. The Elimination of Middlemen
2. The Various Areas of Implementation
3. The Constant Increase in Market Value
4. Its Use in Electronic Governance Systems
5. The Approval from Top Businessmen
The technology is growing quickly, and according to a survey by Deloitte, 61%, 47%, and 54% of American, Chinese, and Singaporean citizens respectively agree with the argument that blockchain is scalable and will eventually achieve mainstream adoption.
Let’s take a closer look at the points that make blockchain attractive.
The Elimination of Middlemen
The blockchain uses distributed ledger technology (DLT), meaning that data is stored in various places and saved between nodes or people. Surely, not every blockchain works like this, but almost all implementations of blockchain are attached to their DLTs.
Every user or node gets updates about the changes in the chain. All the transactions are stored in the form of blocks that can be added as soon as the verification and validation are performed through a proof-of-stake or proof-of-work. When such blocks are added, they cannot be removed or changed. Therefore, the technology is safer than normal databases or paper documents.
DLTs not only eradicate the need for mediators but also decreases the chances of anyone meddling with or manipulating the information significantly. The risk of attack is about 51% wherever the protocols are modified. If a sufficient number of nodes participate, such a process can be recorded and tracked simply.
Ultimately, blockchain surpasses ordinary technology in terms of safety, cyber defense, credibility, and scalability. In the case of Bitcoin or digital currencies, the peer-to-peer electronic currency transaction is a process of data exchange, and the idea has been used in many other cases. A great number of the Indian banks have adopted a host of applications based on blockchain for procedures such as processing invoices, discounting, eKYCs, authenticating and verifying documents using e-signatures, and issuing commercial letters and other trade documents. All these procedures once required an intermediary, manager, or auditor to fulfill some steps of the transaction, which led corrupted systems, poor governance, or simple mismanagement.
The Various Areas of Implementation
Not every blockchain is decentralized. It’s possible for a blockchain to be public, private, authorized, or have combined characteristics because one protocol can be integrated at the top of another. Let’s take Libra, for instance. It’s not like any other digital currency. Yes, it’s based on blockchain, but it’s controlled by the Libra Association, which consists of Facebook and other partners who want to benefit from this currency. Therefore, it’s not like Bitcoin.
Nevertheless, blockchain’s versatility makes the technology so flexible that the system is now being widely implemented for various non-fintech projects, such as storing medical files, entering into binding agreements, monitoring the flow of goods, and even checking the information in the era of fake news.
The Constant Increase in Market Value
The International Data Corporation (IDC) claims that blockchain spending is set to increase at a vigorous pace from 2018 to 2023, with a five-year CAGR of 60.2%. According to The Worldwide Semiannual Blockchain Spending Guide, $2.7 billion was spent on blockchain technology in 2019, which shows an 80% increase from 2018.
The spending is led by the banking industry, which accounts for 30% of the total global spending, while discrete manufacturing and process manufacturing are the next largest industries, with a combined share of more than 20% of overall spending, according to the report.
Its Use in Electronic Governance Systems
Many countries have started using applications based on blockchain, and Estonia is the brightest example of the blockchain’s efficiency in business and governing. Estonia is using KSI blockchain for different e-governance purposes. This technology is used in various spheres such as medicine, law, banking, and business.
NATO, the UN, and the World Bank have also implemented blockchain for multiple purposes, such as bonds issuing. Microsoft and Accenture started their cooperation to develop a prototype for a digital identity system and help a UN project that’s going to provide more than one billion people from all over the world with legal identities. This project would make it easy for one’s personal information to be shared with service providers and government agencies without compromising how it is going to be used and making it clear to users whether the information has been provided to third parties.
The Approval from Top Businessmen
According to a 2019 Deloitte survey, about 86% of 1,386 businessmen believe that blockchain will go viral. The number of people increased in comparison to a 2018 survey — back then, only 84% of executives had this opinion. These statistics show that companies and businessmen consider blockchain implementation to be a real option. What is more, it also has a great influence on small businesses.
Gartner estimates that blockchain’s added business value will total a bit more than $176 billion by 2025, and then expand to more than $3.1 trillion by 2030.
The Deloitte survey also showed that 81% of participants want to start using the blockchain instead of their ordinary existing systems, and 77% think that if they don’t implement blockchain, they’ll lose their market share. The greatest challenge for most businessmen is finding out how blockchain can help their businesses and work for their individual needs.
Gartner claims that by 2021, 90% of the blockchain applications that are used right now will need to be changed to stay safe and up to date. This means that blockchain will have the brightest future and is on its way to innovation.
Check these predictions with https://tozex.io/
