Blockchain Tech

What is the Future of Blockchain Technology?

What is the Future of Blockchain Technology?

Blockchain is one of the most common technologies in business presently. Blockchain tech can move major transformation and develop new opportunities in several industries ranging from banking and cybersecurity to intellectual property and healthcare industries.

This type of technology has a great deal of technology because the use of mobile phone use keeps on increasing, and also the use of mobile applications, making access to money much more comfortable than usual.

The development of a cryptocurrency wallet application readily offers a simple medium for access to funds that bypass financial arbiters. This could be a response to reliance on financial institutions for the acquisition and transfer of money.

How Blockchain Works and who is that using Blockchain already 

A blockchain is a decentralized database. It is also an electronically distributed ledger or list of records that are accessible to several users. Blockchains usually use cryptography to log, process, and confirm every transaction, making them safe, long-lasting, and transparent.

The two General Categories of Blockchain Include

  1. Permissionless: which anyone is free to join
  2. Permissioned: it requires participants to be authenticated by the person or group handling it. It is also further divided into private and community blockchain networks.

Those using blockchain already.

Nordea allows small and midsize companies to be part of international trading partners with other large European banks to build a trade financing platform. They trade, based on the IBM Blockchain Platform running on IBM Cloud.

INBLOCK’s goal is to prevail in cryptocurrency technical inadequacies by making digital asset transactions quicker, more comfortable, and more secure by using IBM LinuxONE.

One of the biggest grocery retailers in the US Kroger, food retracts, is quite expensive because it usually must pull the unaffected product from the shelves. By using a blockchain with industry-specific IBM Food Trust modules for food traceability, the retailer can work with the suppliers to track food from the farm to its shelves, assisting in discovering which products to pull, and which are safe for customers.

NuArca partnered with IBM to bring about a blockchain voting network solution based on the IBM Blockchain Platform that enables objecting beneficial owners and their votes to be instantly represented within the proxy voting cycle.

This enables proposal supporters to make ideal decisions around whether to spend extra and where to spend it to accomplish their desired result. The blockchain solution secures OBO’s anonymity while assuring the transparency and suitability of the voting process.

Plastic Bank built a security-rich, scalable reward system for collecting and recycling plastic, a blockchain banking platform that works on the IBM Cloud.

Bitcoin is the most notable example of blockchain technology, but an increasing number of early adopters merges it. For instance, Google, Goldman Sachs, Visa, and Deloitte are investing in blockchain projects. And businesses working on Blockchain-based services include:

  • Spotify, to manage copyrights.
  • IBM, to build a tracking tool for shipping companies and retail chains
  • Eastman Kodak, to develop storage for stock photos.
  • Predictions For Blockchain 

Government Crypto

Most governments across the globe will develop or adopt some form of virtual currency come 2030.

The government currency of the future is unavoidably crypto. Similar to the traditional authority alternative, cryptocurrency is more effective. It offers decreased settlement times and provides enhanced traceability.

Cryptocurrency can also be backed by real assets, compared to authority currency, and its price can be artificially manipulated by several controls such as monetary policy for printing extra tokens.

In the nearest, government-based cryptocurrency will become an area of experimentation and explorations, led mainly by developing nations with fluctuating economies and weak institutions. Lots of such efforts will move in a fast fashion with a timeline moved by political concerns instead of economic issues or technical progress. 

Although, lots of these early projects will unavoidably fail due to the early stage of the technology, which is yet to mature. And due to the inadequacy of in-house knowledge by a respective government in charge.

Due to the inadequacy of essential expertise internally, these governments will switch to external consultancies, some of which are recently formed and with limited resources. Therefore, several governments will eventually be victimized by hackers due to insufficient or incompletely implemented practices concerning private-key management and related processes. This issue parallels the early days of the Web. Companies that were successful in commerce but not well-known with e-commerce made mistakes in previous implementations, causing loss of data and funds.

Although, after a while, successful cases will make forthcoming. Next-generation blockchain technology will resolve various present limitations, like scalability, privacy controls, toolset maturity, and interoperability. Price-stable tokens controlled by monetary policies and backed by collateral will begin to gain traction as they become more dependable as a means of trade and as a store of value. Governments that have failed to develop a successful cryptocurrency will become “stable coins” as their virtual currency of choice.

The example companies trying to solve this problem currently are Tether, TrueUSD, Arccy, BitShares, Augment, Basecoin, Carbon, Petro, Stably, Havven, Maker, Kowala, Sweetbridge, Fragments, etc.

Trillion-Dollar Protocols

According to stock market valuation, there is a competition among the four most popular companies in the world (Apple, Amazon, Alphabet (Google), and Microsoft), as to which one will be the first to attain one trillion dollars in value. 

All these companies are representative of the new economy, one that should probably be referred to as the no-longer-so-new economy. This recent economy is one based on the decades-long transition to digital business and online connections.

It is the Internet economy or what blockchain advocates refer to as “Web 2.0” (expecting the forthcoming era, the blockchain era, as “Web 3.0”).

The recent economy is a layer of value above the physical substrate. Although, not diffused through the entire corners of the world and economic sphere. Its impact will continuously increase, hence the high and increasing valuation in stock markets. It is certain that after the first trillion-dollar company, the rest will also cross that limit, and there may probably be three or five.

Blockchain technology transforms the nature of this equation. It powerfully decreases the costs of transactions and information flows. Where there were friction and motion, these levels are reduced. Doing so wears down the traditional rationale for a firm, particularly a trillion-dollar firm.

Large firms exist in part because there is a massive schism between processes that happens within the walls versus those that cross to the outside. Blockchain technologies transform the equation and help frictionless flows of tokens and other digital assets.

This implies that, in the future blockchain era, trillion-dollar firms will be restored by trillion-dollar tokens — tokens that support a decentralized ecosystem of entities that jointly obey the role of the mega-corporation. That era is about to begin, and there will be several trillion-dollar tokens in 10 years than trillion-dollar firms.

Blockchain Identity for All

By 2030, a cross-border, blockchain-based, self-sovereign identity standard will come up for people, as well as physical and virtual assets.

Blockchain-based identity decentralizes the data collection, cross-verifies the gathered data through a consensus mechanism, and keeps this information on a decentralized constant ledger. It allows decreased dangers of security breaches, importantly, improved effectiveness, enhanced reliability, and, most essentially, self-authority.

Based on several data sources, about 1.5 billion people in the developing world don’t have proof of identity, also more than 65 million refugees. Blockchain-based self-sovereign identity platforms will offer the disenfranchised population with tools to collect and manage legal documentation. The new identity platform will be safer and more reliable since it will be kept on a distributed ledger instead of ownership of a central authority.

Blockchain-based identity platforms will also allow self-sovereignty, which means personal privacy. The decision to reveal identity information will be within everyone’s control. With the present Facebook data-breach scandals governing the news, blockchain-based identity develops a viable and essential solution to various data privacy problems.

Some use cases for the types of data stored on a blockchain-based identity platform includes:

– Tax identification records

– Reputation and trust scores (e.g., credit history)

– Healthcare and medical records

– Government records (e.g., date of birth, etc.)

– Employment records

– Certificates and attestations (e.g., university diploma)

Come 2030. A clear end-to-end solution will come up with the winner, and increased interoperability among identity platforms will allow simple use and global cross-verification.

A blockchain-based asset identity platform will collect, store, and share data for both physical and virtual assets. More than 20 billion IoT devices are expected to exist by 2020. Blockchain will offer a safe, reliable, and effective mechanism for these devices to transact among one other. Blockchain will store a permanent record of every interaction and will allow immediate payment settlements (e.g., two IoT devices transferring assets between one other).

Virtual assets will also have a distinctive identity on a blockchain. An example of virtual assets would be crypto kitties, fictional cats in a virtual game, and living on the Ethereum blockchain. With the power of blockchain, these virtual objects are changed into tokenized assets, which, compared to physical assets, will have their distinctive identity. Importantly, blockchain will allow an automated operating system uninterruptable connecting individuals with assets in physical and also in virtual worlds.

Sample companies that are solving individual identity presently: uPort, BlockAuth, Civic, PeerMountain, IDRamp, Sovereign, Sovrin, TrustedKey, SelfKey, NuID, ValidatedID, Microsoft, CryptID, ExistenceID, IBM, Blockstack, Lumeno.us, etc.

Sample companies solving physical and virtual asset identity today: WAX, Verses, BlockV, Xage, Filament, Blocksafe, DMarket, etc.

World Trade on a Blockchain

One of the most inspiring sectors where blockchain can offer outstanding business value is the global supply chain. In its present state, world trade is controlled through a chaotic, fragmented set of business relationships among unreliable parties. This results in ineffectiveness, errors, and fraud. This is a collection of real-world business issues that are presently unsolved and cannot be solved without the use of blockchain technology.

Some examples of real-world supply chain issues that need to be solved are:

  • Fake Louis Vuitton handbags and other fashion apparel in Asia
  • Counterfeit auto parts in North America
  • Counterfeit medicines in the pharmaceutical industry
  • Food supply chain in China 
  • Grey market or counterfeit electronic equipment, including medical devices 

As seen, the issues in global supply chains are essential and, in some cases, life-threatening. According to WHO, every year, about tens of thousands of people die from counterfeit drugs. The solution to these issues is challenging because the business ecosystems are fragmented, ensiled, only partly automated, and missing a trusted central authority with jurisdiction, resources, and credibility to trace the origin and verify authenticity.

The solution needed is “anti-disruption” — i.e., bringing order to chaos by using blockchain technology as a strength for unification: to combine disparate flows of payment, physical goods, and information. This will be challenging, and complete solutions will take years to develop. In effect, one is building an ERP system for a business ecosystem, which implies that it will take longer and be more challenging than developing an ERP system for a company.

Also, technology doesn’t yet have functional scope, flexibility, performance, effectiveness, and maturity. Once it matures, the challenges in supply chains are real enough, and significantly sufficient that solutions will finally be developed, and blockchain will play a vital role in these future solutions.

Some of the Companies are Provenance, Blockfreight, Blockverify, Caravaggio, Cargo Chain, Chain of Things, Consentino, Fluent, Kioog, Kouvola Innovation, Mojix, Modum, Wave, Zerado.

Blockchain for Good

Poverty and income inconsistency are debatably the hardest challenges for humanity to deal with. More than 10% of the world population, more than 750 million people, live on less than $2 a day. About 2 billion people are regarded to be unbanked and have no access to financial services. 

Blockchain technology can contract the poverty gap. How? It can be done by enhancing financial inclusiveness, decreasing corruption, and allowing decentralized access to value-creating assets. 

Solving this issue alone will have huge financial implications on the global economy. An eminent economist, Hernando DeSoto, stated that “dead capital,” or, in other words, property or asset which is held but not legally known, is estimated at $20 trillion. Doubly around asset ownership reduces asset cost and traceability ability. Therefore, by developing a bright, tamper-proof property and asset tracking system, blockchain technology can enhance global wealth.

Finally, blockchain technology allows massive-scale tokenization of value-generating assets only available to the wealthy currently. To buy such an asset presently, one has to borrow a tremendous amount of money from a bank and take an upfront danger on the purchase. Blockchain allows the tokenization of large-scale assets. It implies that even if you are a farmer in rural Africa, you can become a fractional proprietor of a revenue-generating asset like a gold mine.

Conclusion 

Shortly, blockchain will revolutionize business processes in several industries, but its adoption needs adequate time and effort. However, shortly, we can anticipate that governments will later accept blockchain advantages and begin using it to enhance financial and public services.

Although some blockchain startups will crash, people will get lots of experience and knowledge on how to use it effectively. Blockchain will encourage people to gain new skills, while the traditional business will have to reconsider their processes. Generally, in 2020, we can see several examples of successful implementation of blockchain technology.

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