Blockchain Technology: What’s the hype all about?
Blockchain technology is today seen as the most revolutionary development since the dotcom evolution. While many believe it is overhyped, many see this technology as the solution to many problems in this world. The fun fact is that the Blockchain technology was invented by Satoshi Nakamoto in 2008 as the public transaction ledger for Bitcoin, the first cryptocurrency.
Although Blockchain technology played the centric role in popularizing the trend of cryptocurrencies globally, the technology itself never got much attention. With the rise and fall of Bitcoin over the past decade, the world is now skeptical on the future of cryptocurrencies. Contributing less than 0.5% of the global money supply and even lesser in daily foreign exchange turnover, the future of cryptocurrencies is hazy right now.
However, amidst all the chaos and hype around cryptocurrencies, big tech firms are steering their attention towards the technology behind cryptocurrency. Yes, we are talking about Blockchain.
What is Blockchain?
Well, if you think that Blockchain technology is restricted to cryptocurrency, then you are mistaken. In general terms, Blockchain is a technology to build an ecosystem for managing cryptocurrency to maintain a secured ledger that can record transactions between two entities without any risk of double spending, manipulation, or fraud.
In technical terms, Blockchain is an open ledger that lists records as blocks which are linked and secured via cryptography. These blocks are connected with each block linked to the previous block through a cryptographic hash, a timestamp, and transaction data.
The reason behind the sudden popularity of Blockchain is the fact that once recorded; the blocks can’t be modified. It is the very reason why Blockchain is unique because it offers a decentralized peer-to-peer network that can’t be altered once recorded.
Currently, the adoption of Blockchain technology can save 30% in infrastructure costs for the banking sector. Banks can also improve their savings potential up to $8–12 billion with Blockchain. Over 90% of North American and European banks are already exploring Blockchain technology at the time of writing this article.
Where is Blockchain Technology used currently?
Well, Bitcoin is the prime use case for Blockchain technology. However, besides that, the Blockchain technology is efficient enough to be tried in multiple areas.
One of the noted use cases for Blockchain technology is with the land registration deals. While the Republic of Georgia is starting up a Blockchain based property registry, the Government of India aims to tackle land frauds utilizing Blockchain.
In fact, Andhra Pradesh became the first Indian state to set up Blockchain Technology Park in Visakhapatnam under the supervision of Blockchain Development companies like Phoenix, Oasis Grace, and Apla.
The blockchain is also often associated with banking and finance only. That’s not true. While Blockchain technology came into existence with cryptocurrency, the concept itself has a wide range of potential uses and not limited to banking and finance. Blockchain technology turns out more efficient in authentication and identification of digital identity. The technology is also widely used to create decentralized social networks as well as in the job sector.
Currently, Blockchain technology is used for the following:
- Land registrations
- Smart contracts
- Non-profit organizations
- Digital Identity
- Distributed cloud storage
- Accounting Firms
Blockchain Myths you must know.
Well, Blockchain is undoubtedly a revolutionary advancement in technology. However, there are several myths about Blockchain which must be busted.
For example, many trade pundits ridicule the idea of Bitcoin or other cryptocurrencies replacing the current currency model at any time in the future. Currently, Bitcoin can manage only a few transactions per second, whereas Ethereum can achieve five times more transactions per second than Bitcoin.
On the contrary, Visa handles 65,000 transactions per second. The comparison shows where Blockchain stands against the current payment models. However, 9 out of 10 people still believe that Blockchain will disrupt the banking sector in the future.
Another common myth related to Blockchain is the anonymity labeled to the technology. The fact is that the information on Blockchain is traceable and there’s no dark element associated with crypto transactions, contrary to popular belief. Top tech firm, IBM has invested more than $200 million on Blockchain powered IOT projects with 1000 employees dedicated to these projects.
The blockchain is also misconceived as a storage mechanism when it is an exchange platform where there are at least two parties. A giver and a taker!
The volatility of cryptocurrencies often builds mistrust for Blockchain technology. With the recent slump of Bitcoin, people are getting skeptical about Blockchain. The fact is that Blockchain offers a wide range of use cases besides cryptocurrencies. One-third of C-Level executives are already using or considering the implementation of Blockchain in their organization.
Over to you!
Blockchain technology is here to stay, and while it is overhyped currently, several beliefs involving Blockchain are true. Companies invested an average of $1 million in 2017 on Blockchain projects. A recent report from TMR suggests that the global Blockchain technology market will cross the $20 billion mark by 2024.
So, if you haven’t considered the Blockchain technology for your business yet, then this is the right time to explore this sector.
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