The world heard the name of Bitcoin resonate from all sides of the globe in the year 2017. As bitcoin became a known phenomenon, with the sudden hike in its price, the entire world responded to the idea of the blockchain, the underlying technology of bitcoin. However, the uses of blockchain are not limited to just the supporting technology for the cryptocurrency.
The blockchain technology possesses the potential to interact with multiple kinds of businesses and industries. Its immutable ledger technology can deal with everything ranging from healthcare sector to digital identity management, from smart contracts to industries like supply chain and insurance. The giants in finance and technology are coming together to test the benefits of blockchain technology. There have been introduced new platforms that are already making the effects of this technology evident and its uses are exceeding the mere usage in cryptocurrency business. The coming year is expected to witness remarkable development in the blockchain technology.
The article is a compilation of proofs that how blockchain has till now evolved and contains the potential to grow its spectrum of applications.
As the system of cryptocurrency is growing, the need for making it more robust is also arriving. There are new resilience technologies being introduced to make cryptocurrency safer and attack proof. Don Tapscott, author of “Blockchain Revolution” analyzed it in a way that when China had put a ban on cryptocurrency exchange, it also hinted the world at harming other exchanges in the world. The price of bitcoin went irrationally high with this step. The Ethereum DAO got attacked and it took a robust action to ensure the security of the system. This, in his opinion, is not Whack-a-mole, rather Block-a-mole. The year 2018 will witness development in making cryptocurrency more resilient and safe.
States to adopt the system.
2017 was a fruitful year for bitcoin, the currency received popularity as never before since it was coined. While blockchain on the other hand, still remained a phenomenon not very well understood by many. Its assumed that 2018, contrary to 2017 will be a year solely dedicated to Blockchain technology. Initially, the idea, even when not too famous was considered by fintech and different industries for incorporation in their businesses. however, it is expected that the canvas of blockchain will broaden and take the public sector along with private into the picture. The government sector in some countries like Switzerland where in Zug, digital identity management has been introduced for its citizens, is inspiring progressive countries like the UK to initiate a similar system for its citizen’s identity security. Some states that suffer from rigged elections are considering the option of using blockchain for voting as well. Blockchain for states can offer many benefits that each of their inhabitants individually enjoys, the technology where has the potential to revolutionize the private sector, it can easily cater to the needs of nation states too. 2018 is definitely going to be a year when more governments will enter the league of blockchain user countries.
The most expected happening of 2018 is the rise in the value of cryptocurrency. The cryptocurrency is still in the infancy period, yet, bitcoin experienced a magnanimous rise in price and then a sharp fall too. The entire episode of rising and falling of bitcoin price is an evidence of people developing a sense of cryptocurrency’s value and usage. The year 2018, because of the same reason is expected to be the year of an investor looking towards the purchase and sale of cryptocurrency for trading purpose. As the investors have also seen the sudden rise and fall of bitcoin, they are going to remain more cautious and trade with maturity in the coming year. The use of blockchain will also be used to the fullest by these investors when they buy the cryptocurrency and record its activity. It is also opined that to make bitcoin continue its rise, there should be introduced scaling systems in the blockchain that can do away the challenges posed to the regulation of the digital currency.
Central Banks accepting Blockchain.
Payment systems that are based on blockchain and use fiat-currency will have a room for central banks to operate with retail banks and make the cross-border payments easy. Just like the fiat currency, central banks are going to use digital assets as a medium for the value exchange with more security and agility.
Blockchain Implementing the Rule of Law.
In the age of start-ups and technology influencing our lives, business operations have become more automated with enterprises looking to implement blockchain in their systems. Still, the problem that prompt every now and then hasn’t had a resolution for it. There is an incorporation of blockchain in the legal system, however, the court orders cannot be implemented in a blockchain as of now. The governance models that are based on majority can easily be implemented, but, when it comes to rule of law in the business network, where consent from a majority of the participants is required, there is a need for agreement from all to make everyone bound by a law or court order. Rule of law is one department that really needs to be implemented using a system that ensures timely execution and guarantees security of it, however, enforcing it through a decentralized system is a challenge, global leaders are needed to address in the year 2018.
The Commerce industry and the Blockchain.
The blockchain is a new technology that has disrupted great industries which have been present for a long while in the corporate world. While the world is undergoing a transformational phase because of technology, the blockchain is ensuring an impact on the financial industry side by side the supply chain and healthcare sector. It guarantees transparency in operations and all the transactional activity that takes place in the finances of these industries. There is a plan of generating 176 billion USD by 2025 through the implementation of the blockchain, as 2,500 new blockchain patents have already been filed. Just like other industries, there is hope for modern day commerce to have an effect of blockchain on it as well. Blockchain has already been widely spread in the commerce sector where the retailer is supposed to take profit from their value chain, this system can easily provide it with the needed things it requires from it. The blockchain industry has a great potential to influence sectors like healthcare, public, and retail at most.
Tokenization has a future for Fiat Currency.
The blockchain is expected to grant fiat currency a new status. There are blockchain systems that are going to introduce new and innovative kind of digital notaries and distributed database services. Bitcoin and blockchain are managing digital tokens in an unprecedented manner, they are revolutionizing even the unexplored aspects of business models.
In days as volatile as these, tokenization of assets offers solutions that people have always been seeking. However, the digital tokenization is not bound to just the assets but expands to tokenization of fiat currency as well. As many businesses have their revenue saved in fiat currency, there is a constant threat that is posed to their security and a need for settlement by the intermediary is always present. In these circumstances, blockchain based solutions can induce life in the fiat currency and obtain desired results for the enterprises without the risk and need for conversion to the foreign exchange. The year 2018 can explore the possibilities of blockchain and the fiat currency.
Blockchain and analytics.
Blockchain application in multiple industries is going to make data analytics a possibility with more accuracy and identity protection that can add remarkable value to the businesses and individuals. The real estate industry, for instance, uses analytics for mortgage and approval processes. The borrowers and lenders can cooperate with each other without the trouble of facing a fraudulent and time-consuming process for payment and documentation. Blockchain, on the other hand, ensures anonymity and uses aggregate analysis to enhance the efficiency of the lending process. The data analysis tool in blockchain can be made useful in other industries like health, retail, fintech, supply chain and much more alongside the real estate.
The blockchain technology is the most rapidly growing industry in the world today. Experts assume that the technology is going to completely transform the way businesses operate in the contemporary world. In the article, we have discussed how blockchain, as commonly perceived is not about bitcoin only. We have highlighted many aspects that give our readers the idea of how significant a role blockchain technology can play in the business world.