The blockchain technology landscape has become vast and emerged as the tech trend of the year and several years to come. It is growing at a supersonic rate. The popularity of cryptocurrency has given this technology colossal popularity.
The answer is simple — it has all the potential to solve many problems and pain points around online trust and security. Its encrypted database model has given cryptocurrency a boom. Blockchain technology is rolling with a bright future, affecting more and more lives in the years to come.
Blockchain Technology Defined
A blockchain is a decentralized, encrypted public ledger that works across a network. As a secured database, it reserves information electronically in a digital format. Blockchain is best known for its work in cryptocurrency, like Bitcoin, for offering a secure transaction record. The data on a blockchain can't get changed. Hence, it becomes a legit disruptor in multiple industries, like payments, healthcare, and cybersecurity.
Blockchain users are widely distributed, and so are the blockchain technology applications spreading wings in a far broader territory. According to blockchain evangelists, this space of tech can improve security and integrity in systems involving multiple parties sharing database access.
According to CoinDesk, over 82% of institutional investors said they would increase spending on Blockchain and digital assets by 2023
Its inherent security measures make it a prime asset to be used in every single sector. It is expected that the Blockchain market will stretch by $11.7 million in the year 2022. Its immense potential is generously getting unlocked, and the benefits of blockchain technology are growing.
Looking at the dramatic growth and a future sphere it can have, it is exciting to see how blockchain technology will unfold? The 7 predictions depicting the evolution of Blockchain and how the complete landscape may look is well explained below:
1. Green Earth And A Green Future
The rising need for security, privacy, and self-sovereign control has come up vigorously at the cost of green energy — our environment.
The world's two most gigantic cryptocurrencies: Bitcoin and Ethereum, are major energy consumers because of their rigorous computer-intensive proof-of-work model. The top giants of the world are already joining hands, being completely green with their work models and coming to terms that green earth is the inheritance of the perceptive force of humans.
Even Tesla's chief Elon Musk took a step back by stopping payment for his cars in 2021 through Bitcoin.
But the future is brighter, it seems. The world's biggest cryptocurrency - Ethereum, has promised to embark on a green journey by accepting the POS (proof-of-stake) model by 2022.
If projections are to be believed, then the use of Blockchain technology can grow by 67% if Bitcoin and Ethereum network changes align with the sustainable path to generate consensus.
2. A Better Standard Of Living
The world has a significant disparity in living standards. There are about 2 billion unbanked people with no access to essential financial services and suffering from an obsolete bank balance.
Wonder what? Blockchain technology can make the world better by:
- Shrinking the poverty gap
- Reducing corruption
- Financial inclusivity
- A formal system of property rights
Financial inclusivity is the primary help Cryptocurrency can offer. It is a decentralized system, and people can get paid in Bitcoins. The zero dependency on a centralized system or banks is already a tedious process for many.
Also, Blockchain technology with its secured, tracked system is a blessing for a no corruption world. The untracked records and corruption in public procurement and accountability summons to a rising distrust and complex process leading to corruption. Blockchain can solve that with increased transparency and accountability of assets for a world everyone wants.
3. Blockchain And IoT
The encrypted, immutable, and automated blockchain model could be a boon for the Internet of Things. It is highly amicable with creating records of transactions between machines.
Blockchain is likely to be used for machine-to-machine transactions. It can serve as an excellent platform for micro-payments through cryptocurrencies when one network is needed to buy services from another.
Integrating Blockchain and the internet of things can open doors for new opportunities and taming inefficiencies under the sun. Blockchain lays the ground for a system that adds a layer of security, and it is practically impossible to overwrite existing data records. Including IoT with Blockchain adds an extra layer of protection to ward off any malicious activity or the threat of attackers.
IoT has witnessed secret vulnerabilities and quickly became a target of data breakers and attackers in the past. Blockchain is vast to help with improved transparency and enchanted security. Be it in supply chain and smart contracts, operations, and field services. The use cases are plenty, making the integration of IoT and Blockchain a hit.
The path is a little far, but it would be great to hear about any pilot projects by 2022.
4. Blockchain in Healthcare
After Covid-19 and the devastating scenario, the world has witnessed, every country is on the lookout for strengthening its healthcare models.
Blockchain technology comes with the potential to transform healthcare, let alone support it. This technology is of help by providing health information exchanges by making electronic medical records efficiently and securely. With the fail-proof security, privacy, and interoperability of health data, the patient is the center of the healthcare ecosystem.
The future of blockchain technology in healthcare is bright, where it can touch many areas, but the path to fertility is still shaping up and not fully mature to be applied with an immediate effect.
The use cases of Blockchain in digital health are many.
- Supply chain transparency of medical goods.
- Electronic health records of patients
- Contracts for supply chain settlements and insurance
- Medical staff credential verification
- Remote monitoring for IoT security
The use cases are still in the nascent stage of development and may or may not adapt to whether blockchain technology could be successful for implementation.
This tech space is ideal for a more comprehensive and end-to-end security with no theft of security breach.
5. World Economy And Blockchain
Another notable blockchain trend to make a future of dreams is its contribution to the global supply chain. The world trade is currently untrusted, and the complete landscape is chaotic.
Blockchain technology can ward off the burgeoning problems of counterfeiting that is the stigma bore by the policymakers. The underlying grey market in medicines, fashion, apparel, the automobile is enormous, and not to forget, it could be life-threatening too. Every year, the deaths recorded from counterfeit drugs are an issue to worry about.
Blockchain can have a system for economic growth and improve conditions, and scenarios based on trust. However, world trade can blossom with the technology getting mature and breathing flexibility, performance, and efficiency.
The acceptance of cryptocurrencies in different countries cannot be ignored and how it leverages economic growth.
No other technology has transitioned the world the way blockchain technology does.
More countries will accept cryptocurrencies like bitcoin to pay for employees' goods, services, and even salaries in the coming years. The global inflation and hike in remittance fees can make the middleman take the shift too.
Tokenization is converting a physical asset into digital coins. Paintings, real estate, or any physical asset can be converted to a digital currency, and it is one of the emerging trends of Blockchain getting the masses' attention. Non-fungible tokens will aid digital scarcity and prevent it from being emulated solely by offering exclusive digital asset rights to the owner.
The discrepancy in property rights and the physical asset has always been a cause of concern, and blockchain technology's future is brighter to minus it too. Real estate tokenisation is the news of the hour and works brilliantly trading with tokens and not compromising on legal compliance.
7. Blockchain As A Service
A relatively new trend that is still anew as we speak. Blockchain as a service (BaaS) allows businesses to form financial models using distributed ledger technology.
The set of the products does not involve a rigorous mechanism — a step, installation, or any manual intervention.
These BaaS models are mostly based on fostering decentralized architectures and other applications.
Implementing Blockchain to social media networks will solve the grueling problems for content creators. Securing their data and handling them the rights and sole ownership of the content they create.
Microsoft and Amazon are on a mission to craft BaaS architecture for businesses.
Why Is Blockchain Tech The Future?
The way blockchain technology continues to change the economies, businesses, and even the life of individuals is surprising. Its unstoppable innovations will woo many investors by 2025, as per the reports by Gartner.
Blockchain adoption is becoming a global phenomenon, and the wave of its innovations is widespread. It is the future because of its
- Unparalleled security
- More data transparency
- Capacity for large volume transactions
- Use cases in many areas
In a nutshell, blockchain trends are paving the way for companies to address issues like data compliance, privacy, and security by teaming with AI and ML. The years to come are promising with the exponential growth of blockchain technology, and large and small SMEs adopting it too hurriedly.
If the future is somewhere, it has to be with Blockchain. This blockchain technology overview should help in understanding the anticipated advancements in the coming years.