With the revolution in blockchain technology, the use of blockchain as a critical financing resource is becoming quite requisite. These considerations lead to the common and frequently asked question: what is the future of blockchain technology?
The future of blockchain technology, no doubt, is all about the establishment of a common, more decentralized, extraordinarily fast, and cheap method of meeting the financial demands of the future. The core objective is to facilitate cross-border payments that would satisfy the needs of the contemporary global world.
Now that around 42 million digital wallets are being used globally, future financial resources need to provide people with platforms that facilitate the exchange of cryptocurrencies across different types of blockchains. Blockchain technology's future lies in developing adequate measures and standards to ensure that the transaction costs are reduced to less than one percent. The future business demands real-time payment and easy methods of exchange that can be used by anyone and everyone, anytime.
It should be mentioned that although blockchain technology's future eminently holds many fruitful advantages, revolutions like blockchain always face significant resistance and hurdles at the beginning.
Why Blockchain is The New World?
As people are investing more in digital currencies, data from Glassnode and Bitinfo reveals that there has been a significant rise in digital transactions, with almost 700k to one million transactions on average every day in 2020 alone.
In 2016 Elizabeth White established The White Company to meet the market's luxurious market demands with a platform that dealt with utilizing digital currency. People are looking for more constructive ways of exchange. Bitcoin and other cryptocurrencies are becoming more and more common.
People are found to be interested in owning cryptocurrencies. It was observed that the number of users of bitcoin had surged significantly during the last decade. About 11 % of Americans own bitcoins at the moment, which means that almost 30 million bitcoins are being traded in the state at the moment.
With the revolution of blockchain technology and the rise in the frequent use of cryptocurrencies, there is a possibility that blockchain will become a basic necessity soon. International industries and business organizations are being transformed by blockchain technology. The block solutions meet all the basic needs of a future business, such as access to data by multiple parties, assurance of data validation, and an effective centralized system.
The Blockchain Trilemma
The evolution in blockchain technology has given birth to the blockchain trilemma. It has been observed that blockchain networks are seen to tradeoff between security, decentralization, and scalability. The future of blockchain technology is held in the balance of these three characteristics. Developments in blockchain technology are pushing to build a network provider that can facilitate all three basic business exchange needs. Future blockchain technologies are aiming to resolve the blockchain trilemma to create a more stable and practical framework.
Business Management And Blockchain
The most anticipated future of blockchain technology is expected to be in the improvement of business technologies. Global business procedures are expected to adopt blockchain for intelligent business management and security. It is believed by the year 2030; the world would be at an entirely new stage with more improved standards of living, all attributed to the developments in blockchain technology.
World trade is likely to be leveraging the blockchain in the future since the urge to solve the chaotic and fragmented business relationship is becoming very important. An anti-disruption system is expected to be developed through blockchain that ensures more smooth business solutions.
The main benefits that businesses and organizations will get from blockchain technology can be summarized as follows:
Effective supply chain management
It is recorded that around 10% of the products in significant businesses are part of the grey market and account for a multi-million dollar supply chain. Blockchain aims to simplify these business changes and create more efficiency in the fragmented system. Blockchain promises high transparency rates that will enable the business development teams to have more detailed documentation of product histories more easily.
Using blockchain technology can power an integrated framework to record real-time reports; these reports can vary from supply chain management from inventory to receipts' inception. A distributed ledger can be more hassle-free and provide more accurate and timely databases. The future of blockchain technology is more furbishing in terms of eradicating human error in comparison to conventional record-keeping and up-gradation of documents.
Auditing and quality assurance
Quality assurance protocols can be very challenging in terms of creating accurate records of transactions. Blockchain technology will enable the identification of problems in the manufacture and distribution procedure of products.
The tracking integrations in the most developed blockchain can provide unparalleled opportunities to establish efficiencies. Blockchain facilitates the creation of permanent records that allow the financial audits to be more accurate for the external partners and the business holders.
The most exciting feature of blockchain can be the automation in accounting solutions. At the moment, several blockchain platforms provide automated day-to-day accounting needs, and more developments are expected to be formatted shortly.
Smart contracts
A beneficial amendment that blockchain technology has brought is smart contracts. With more upgrades, smart contracts are expected to have more intelligent executions. The key challenges that contemporary sales operations faced were the capacity to manage multiple deals at the same time.
Blockchain technology provides a more smart approach towards the requirements of expiration dates, signage, and auto-renewals. Blockchain has established more digitized and upgraded contract drafts that are supported by secure coding protocols. Smart contracts' impressive features include the trackable executions that anyone on the customized peer-to-peer network can trace.
Read Also: What Are Smart Contracts? How They Work And Why They’re Important
More affordable and efficient transactions
When conventional credit cards charge you two to five percent of payments when transactions are made, digital wallets are free of these expensive fees. International business organizations now demand more affordable and safe ways to process payment procedures. The automation and transparency rates provided by blockchain are more useful for business since the requirements of having intermediaries for the payments are eliminated.
Blockchain rarely charges more than one percent, and in some integrations, there aren't any charges at all. The cross border payments have been improved as blockchain continues to develop its technology. The cost and speed of blockchains have made the payment procedures free of troubles. In this manner, the future of blockchain has to be in the facilitation of payment processes to better focus on other potential sectors.
Transformations In Industries by Blockchain
Many business industries are transforming through blockchain. The future of blockchain technology lies in the support of these future industries. Some examples of famous initiatives incorporating blockchain in their frameworks are as follows:
Nordea
Nordea has established a venture to create a link between large European banks and small or midsize business companies. Nordea provides small companies to engage in trading on international platforms.
INBLOCK
INBLOCK is working to create amendments in blockchain technology that will help in eliminating the deficiencies of blockchain. Making transactions faster, convenient, and safer INBLOCK is working with IBM LinuxONE to create facilitation in the blockchain technology.
Kroger
One of the largest grocery retailers Kroger has started integrating blockchain by installing modules that support the traceability of food. The retailers can now tract the food supplies from the farms to the grocer's shelves employing blockchain. Blockchain facilitates the processes by identifying which products should be pulled out from the shelves and which products are safe for the end consumers use.
NuArca
NuArca is about to introduce a more modern method of voting by integrating blockchain technology. These types of blockchain solutions will provide you with anonymous integrations and transparencies in the voting process. This will introduce a system that enables business organizations to create proxy voting cycles and aid the process of decision-making.
Key Applications in The Real World
Blockchain is becoming more and more common in the real world. The future of blockchain technology lies in practical applications. Jim Bassinggame has stated that blockchain technology is the future of trust. Insurance companies tend to use blockchain to create multi-party insurance contracts. According to Dataverisity, it is predicted that the market for blockchain in the insurance industry could rise from $65 million to $1.4 billion by the year 2023. The CAGR of this market is expected to grow by 85 percent.
Some practical applications of blockchain are as follows:
- Privacy of personal information.
- Financial services: Financial services are more effective using blockchain. It is imperative to come up with a decentralized system like blockchain to integrate financial procedures to cope with the demands of future financial needs.
- Identity management: Blockchain technology is providing a very effective method of identity management.
- Trust: Blockchain provides a more trustworthy format of working for the stakeholders of a business corporation.
- Smart contracts: As discussed earlier, smart contracts are one of the most comprehensive features of blockchain.
- Safe: Blockchain technology is significantly free of fraud and helps in the identification of thefts if any.
- Reduced costs: Reducing the costs at a significant rate with the rising inflation blockchain can prove to be one of the most affordable methods of keeping money.
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Future Predictions
The future of blockchain seems to be very proactive. It is believed that blockchain could take over the conventional banking system. The future of blockchain technology is therefore predicted to be very bright. Some critical predictions that analysts have made include:
Prediction 1: Crypto Governments
It is believed that by the year 2030, most governments are expected to create virtual currencies or some digital platforms for the exchange of currencies.
Prediction 2: Trillion-Dollar Protocols
With the era of Web 3.0 and the top-tier companies competing to rule over the economies, there is an expectation that there may be more trillion-dollar crypto tokens rather than trillion-dollar companies. The new era of the economy may be ruled by blockchain.
Prediction 3: Common blockchain platforms
Identity solutions will become the "killer apps" for blockchain. A decentralized system will support blockchain technology to cope with identity management problems making blockchain more accessible for everyone.
Prediction 4: Cryptocurrencies running the World trade
With the integration of blockchain in global supply managements, blockchains are expected to be ruling over world trade as well in the near future.
Read More: What Are The Best Cryptocurrencies To Trade In 2021?
Prediction 5: Sustainability and Blockchain
Blockchain is considered to be the solution to many perpetual problems. It is believed that blockchain might bridge the poverty gaps bringing a new world order.
What are the Most Common Questions Related to the Future of Blockchain?
The future of blockchain technology is, of course, questionable. Even after rising past the initial conspiracies, blockchain technology's future is still shrouded with more challenges. Some questions are as follows:
- What if blockchain fails to cope with the struggles?
- Why isn't the banking system still not integrating blockchains
- Are banks going to be a part of blockchain technology?
- Are regulators going to be on board?
All these questions have been answered somehow. It is believed that with the emergence of pragmatic governance models, blockchain is likely to excel in the future.
Read Also: 7 Cryptocurrency Predictions for 2021 That Everybody Would Agree With
Bottom Line: What is the Future of Blockchain Technology?
The future of blockchain technology will in all likelihood be bright. Thanks to the features that blockchain has, it is becoming more popular and is being adopted more and more. Although there are sceptics who doubt the penetration of blockchain in its implementation in the real world, the potential is still great.
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Key Points
- With the revolution in blockchain technology and digital wallets getting more and more common, blockchain technology's future is predicted to be vivid.
- Blockchain technology is becoming the standard day by day, and it is recorded that almost 700 million crypto transactions are made every day.
- Developments in blockchain technology are pushing to build a network provider that can facilitate all three basic business exchange needs; security, scalability, and decentralization.
- Business management can be boosted by blockchain having advantages such, easy auditing, effective supply chain management, and fast transactions.
- Future industries and governments are predicted to be integrated with blockchain technologies.
- Blockchain promises high transparency rates that will enable the business development teams to have more detailed documentation of product histories more easily.
- The main benefits that businesses and organizations will get from blockchain technology are; effective supply chain management, auditing and quality assurance, smart contracts and more affordable and efficient transactions.