The blockchain technology offers the chance to overhaul its current business system – that includes customer interactions, approach to settlements and banking infrastructure. It won’t be easy though, especially that you have to touch into the innermost systems that have already been embedded in the industry.
It may be difficult but it’s definitely possible. The promise is there, similar to how the Internet developed over the years. The possibilities are endless – it can surely take over the current processes and be developed even further.
In closer inspection, it seems like the blockchain technology can easily replace the current Wall Street business model and even influence Wall Street itself. Why shouldn’t it replace the current process when it can provide records that can’t be hacked or forged? ‘Know Your Customer’ processes may be one of those that’ll benefit the most, as it can provide better security regarding the storage and utilization of identity data.
How Blockchain Will Influence the World
The future of blockchain is bright, thanks to the possibilities blockchain can bring. It presents huge opportunities as a traceable global currency that comes with efficient infrastructure. Evidently, it has the power to change not only global banking but also other ongoing industries.
What could possibly happen once the blockchain technology has been established and in place?
Blockchain can already replace central banks…
…or the technology can simply be adopted, and then currencies that are cryptographically secured will be widely used.
Other banks will face risks if they choose to be involved with cryptocurrency firms.
Because the blockchain technology already contains for asset transfers and other related contracts, banks will use fewer applications within and outside its powers.
Ethereum will be utilized more because of its usefulness and will be discovered by banks.
By 2022, it could have lessened infrastructure costs related to securities trading, regulatory compliance, and cross-border payments.
Bitcoin and other cryptocurrencies would have dominated the finance industry.
Banks will soon be known as the safe keeper of cryptographic keys.
Blockchain can help lenders save as much as $20 billion yearly in settlements.
It can gain the power to bypass today’s financial structures completely.
A lot of nations will learn to adapt the technology of bitcoins and other cryptocurrencies.
Developing nations can receive social welfare through this technology.
Elections that used to be arduous and expensive will now be instantaneous; results will be reliable.
Blockchain technology will contribute to the speed and efficiency of various transactional activities.
Since blockchain can lessen or remove third parties in transactions, industries will have to invest more in time and education.
Soon, it’ll be capable of creating new industry opportunities and intervene with current processes and technologies.
Software that uses blockchain technology can help track down and locate criminals using less time and money.
Blockchain Technology: The Future’s Life or Just A Hype?
It’s not surprising that not everybody’s in awe of this technology no matter how promising blockchain is being presented. There are those who believe that they can perfectly live without blockchain.
For blockchain enthusiasts, everything will be within reach once an application is created. Like a reliable browser to the World Wide Web, the rightful app will lead the path in proving what blockchain is capable of doing.
There are those times when the technology has been negatively perceived; one time a blockchain-powered application was hacked, and around $50 million worth of currency was believed to be stolen. There are also reports associating bitcoin in criminal activities. These events, however, don’t prove that there are problems with the technology – instead, there are technical issues with the applications.
Techies agree that having decentralized ledgers will definitely help, but they don’t know yet for sure if the current blockchain form will be effective enough, or if it’ll still need major improvements for it to work.
The Future in App Form
There are applications that are still in “work in progress” mode; once they’ve been completed and released, they can help harness and maximize the blockchain technology.
Here are some of the applications.
One of the biggest problems Internet users face is keeping their digital data secured. What if you don’t have to worry about securing your digital identity?
There are technologies today that work on tracking and managing digital information both protected and efficient, and this leads to reduced fraud and seamless sign-on. These technologies cover healthcare, banking, national security, online retailing, citizenship documentation or identity authentication.
Breached accounts and hacked databases are just some of the issues that technologically advanced communities deal with if they don’t have security measures in place. The blockchain technology, on the other hand, will provide solutions to various digital identity issues.
Through blockchain, identities can be validated in an immutable, irrefutable, and secure manner. Currently, methods used include password-based systems, whereas the blockchain authentication uses public key cryptography.
To verify identity, the only method used is whether the correct private key is used; it’s no longer important to find out the identity of whoever owns the said private key.
Areas that can utilize the blockchain technology in this manner include passports, e-residencies, IDs, and wedding and birth certificates.
Security is reportedly what stops electoral processes from being obtained online. If the blockchain is used, you can check that your vote is transmitted without revealing your identity. It’s no longer a new process as it was used by a Denmark political party.
Other countries tried to use Internet voting, however, there were reports about election officials obtaining key software using unsecured connections and even typed PINs and passwords with cameras on them. Norway, for one, canceled their plans of Internet voting because voters were scared that public voting could interfere with democratic processes.
If the blockchain technology is used, then the governments together with the systems will be more transparent. By doing so, there will be better standards followed by countries of the world.
Smart contracts are digitized contacts entered on the blockchain that is legally binding and programmable. Developers use these legal contracts as statements and variables that can use the bitcoins and the blockchain as its “third party executor” and not a sole central authority.
Smart contracts simply need two parties to define their conditions and agreement. Once the conditions have been satisfied, the funds will be given out and sent to the appropriate parties.
If computers are able to control contracts, then businesses will be more efficient and the systems will be more equitable.
The blockchain has a feature that’s called the ‘timestamp’ feature. Through the timestamp feature, the entire network will validate data at a particular time and confirms its existence.
Previously, centralized notary services are the only ones that provide this feature. From the blockchain network came the Proof of Existence, a decentralized verification method created by an Argentina-based developer named Manuel Araoz. He further explained that this method helps certify your documents in a distributed manner.
How does the Proof of Existence work?
The Proof of Existence works by allowing a user to upload a file and settle a minimal transaction fee to store a cryptographic proof inside the blockchain. The user shouldn’t worry because the data contained in the file won’t be stored online, and there would be no risks of the material being published without permission.
The document will be uploaded anonymously; the digital file will be produced as a part of the process.
There’s a website for the Proof of Existence; it can show files that have been recently uploaded and have the digital files on the blockchain. It illustrates the ledger-like capabilities of the blockchain by keeping proofs of your file; these can be used for verification purposes if necessary.
Distributed Cloud Storage
Right now, cloud storage service providers are centralized; there’s a single provider that you should trust so that they can control all your online assets.
On the blockchain, however, this capability can be decentralized. This provides better security and lessens your dependency on the storage provider. To add, you can rent storage capacities, hence creating new marketplaces.
Anyone who has space to store your data can keep them at a negotiated price. Your data will be secured if they will be “hashed” and if they’d be kept in different locations.
Right now, there are startups exploring this possibility e.g. factum and storj.io – they encrypt your data and then send out to networks that contain basic metadata that are easy to track.
Big Future Ahead
There are big possibilities surrounding the blockchain technology. With the rate that it’s being explored and studied, it won’t be surprising if people will be able to find uses for it that will benefit everybody.
The next few years will be all about experimentation and research devoted to these applications and other ways on how blockchain can be used. It all comes down to the reality that blockchain is indeed here to stay and will make its mark on the society.
The blockchain is more than an application; it’s a technology that can affect society. With its capabilities, no wonder there are a lot of people who wish to explore it and see what it can do. As a decentralized ledger, it can be used in different industries, and there are a lot of processes it can affect. Who knows what will it do next?
Others may doubt the blockchain technology, but they should remember that all good things take time. Soon, it’ll prove its usefulness and show everyone how innovative it is. All it needs is a little more time for people to study it further and to find out its strengths and weaknesses so that it can be used for the greater good.
Now that your minds are quite familiar with the blockchain technology, your next step is to continue learning about the blockchain; stay updated on its developments. It’ll either stay as the timid technology on the back seat or take over and show the world what it can do.
Let’s all wait and find out.