With the technological revolution, the use of Blockchain as a vital financial resource becomes absolutely necessary. These considerations lead to a common and frequently asked question: what is the future of blockchain technology?
Why Blockchain Is a New World
The future of Blockchain technology is no doubt about establishing a common, more decentralized, extremely fast and cheap method of meeting the financial needs of the future. The main goal is to facilitate cross-border payments that would meet the needs of the modern global world.
Now that there are about 42 million digital wallets in use worldwide, future financial resources should provide people with platforms that will facilitate the exchange of cryptocurrencies through various types of blockchains. The future of technology lies in the development of adequate measures and standards that reduce transaction costs to less than one percent. Businesses require real-time payments and simple exchange methods that can be used by anyone, anytime.
It should be noted that while the future of blockchain technology has many fruitful benefits to the highest degree, revolutions like blockchain always face significant resistance and obstacles in the beginning.
As people invest more and more in digital currencies, data from Glassnode and Bitinfo show that the number of digital transactions has grown significantly: in 2020 alone, an average of 700,000 to one million transactions are made every day.
In 2016, Elizabeth White founded The White Company to meet the needs of the luxury market with a platform designed to use digital currency. People are looking for more effective ways to share. Bitcoin and other cryptocurrencies are becoming more and more common.
It was revealed that people are interested in owning cryptocurrencies. It has been noticed that the number of Bitcoin users has grown significantly over the past decade. At the moment, about 11% of Americans alone own Bitcoin, which means that almost 30 million Bitcoins are currently traded in the States.
With the revolution in blockchain technology and the increasing frequent use of cryptocurrencies, there is a possibility that blockchain will soon become a major necessity. International industries and business organizations are being transformed by this technology. Block solutions meet all the basic needs of the future business, such as multi-party data access, data validation assurance, and an efficient centralized system.
- The Blockchain Trilemma
The evolution of blockchain technology has created a trilemma. It has been observed that networks represent a trade-off between security, decentralization, and scalability. The future of technology lies in the balance of these three characteristics. The development of blockchain technology is pushing for the creation of a network provider that can meet all three major business exchange needs. Future blockchain technologies aim to resolve the trilemma to create a more stable and practical structure.
Business management and blockchain
The most anticipated future of technology is expected to be in improving business technology. Global business procedures are expected to adopt blockchain for intelligent business management and security. It is believed that by 2030, the world will be at a completely new stage with higher standards of living, which is associated with the development of blockchain technology.
Global trade is likely to use blockchain in the future, as the desire to resolve chaotic and fragmented business relationships becomes very important. It is expected that with the help of the blockchain, a system of protection against violations will be developed, which will provide smoother business decisions.
The main benefits that businesses and organizations will gain from the technology can be summarized as follows:
- Effective supply chain management
It was recorded that about 10% of products at large enterprises are part of the gray market and make up a multi-million supply chain. Blockchain is designed to simplify these business changes and increase the efficiency of a fragmented system. The blockchain promises a high level of transparency, which will make it easier for business development teams to obtain more detailed documentation on the history of products.
The use of blockchain technology can power an integrated framework for recording real-time reports. These reports can range from managing the supply chain and inventory, to receiving receipts. A distributed registry can be simpler and provide more accurate and timely databases. The future of blockchain technology is more rosy in terms of eliminating human error compared to conventional record keeping and document updating.
- Audit and quality assurance
Quality assurance protocols can be very complex in terms of creating accurate transaction records. Blockchain technology will allow you to identify problems in the process of production and distribution of products.
Integrating tracking into the most advanced block chain can provide unprecedented opportunities for increased efficiency. Blockchain facilitates the creation of permanent records that allow for more accurate financial audits for external partners and business owners.
The most exciting feature of blockchain may be automation in accounting solutions. Currently, several platforms meet the needs for automated day-to-day accounting, and new developments are expected in the near future.
- Smart contracts
A useful amendment that the blockchain technology has brought is smart contracts. It is expected that with an increase in the number of updates, smart contracts will have a more intelligent execution. The key challenges faced by modern trading operations were the ability to manage multiple trades simultaneously.
The blockchain technology provides a more reasonable approach to the requirements of validity, the signs and the automatic extension. The blockchain has created more digitized and updated draft contracts that are supported by secure encoding protocols. The impressive features of smart contracts include traceable execution, which can be monitored by any user of a configured peer-to-peer network.
- More affordable and efficient transactions
When regular credit cards charge you two to five percent of the fees when you make transactions, digital wallets are exempt from these expensive fees. International commercial organizations are now demanding more accessible and secure payment processing methods. The levels of automation and transparency provided by the blockchain are more beneficial for businesses, as the requirements of having intermediaries for payments are eliminated.
Blockchain rarely charges more than one percent, and some integrations don’t charge at all. Cross-border payments have been improved as blockchain continues to evolve its technology. The cost and the speed of the block chain has made the procedure of payment without problems. So the future of the technology should be to simplify payment processes to better focus on other potential sectors.
Transformation in industries with the help of blockchain
Many business sectors are being transformed with the help of blockchain. The future of technology lies in supporting these industries. Here are some examples of well-known initiatives that include blockchain in their structures:
Nordea has created an enterprise to establish a link between large European banks and small or medium-sized businesses. Nordea provides small companies with the opportunity to trade on international platforms.
INBLOCK is working on making changes to the blockchain technology that will help eliminate the shortcomings of the blockchain, make transactions faster, more convenient and safer. INBLOCK is working with IBM LinuxONE to simplify blockchain technology.
One of the largest food retailers, Kroger, has started integrating the blockchain by installing modules that support food traceability. Retailers can now deliver food from farms to grocery store shelves using the blockchain. Blockchain simplifies processes by determining which products should be removed from the shelves and which products are safe for use by end consumers.
NuArca is going to introduce a more modern voting method by integrating blockchain technology. These types of blockchain solutions will provide you with anonymous integration and transparency in the voting process. This will introduce a system that will allow business organizations to create proxy voting cycles and facilitate the decision-making process.
Predictions for the future
Blockchain is becoming more common in the real world. The future of blockchain technology lies in practical applications. Jim Bassingham said that the blockchain technology is the future of trust. Insurance companies tend to use blockchain technology for the conclusion of a multilateral insurance contracts.
According to Dataverisity, the insurance industry’s blockchain market is projected to grow from $ 65 million to $ 1.4 billion by 2023. The CAGR of this market is expected to grow by 85 percent.
The future of blockchain seems very active. It is believed that the blockchain can take over the usual banking system. Thus, the future of blockchain technology is predicted to be very bright. Some critical forecasts made by analysts include:
Prediction 1: Digital currencies of Governments
It is believed that by 2030, the governments of most countries need to create a virtual currency or multiple digital platforms for the exchange of currencies.
Prediction 2: Trillion-dollar protocols
In the era of Web 3.0, when leading companies compete for power over the economy, it is expected that there will be more crypto tokens – by trillions of dollars, rather than companies by a trillion dollars. A new era of the economy can be ruled by the blockchain.
Forecast 3: Common Blockchain Platforms
Identity solutions will become “killer apps” for the blockchain. The decentralized system will support blockchain technology to address the challenges of identity management, making the blockchain more accessible to everyone.
Prediction 4: cryptocurrency run by a global trade
With the integration of blockchain into global supply chain management, it is expected to drive global trade in the near future.
Forecast 5: Sustainability and blockchain
Blockchain is considered to be the solution to the eternal problem. It is believed that it can close the poverty gap by creating a new world order.
Bottom line: What is the future of blockchain technology?
The future of blockchain technology is likely to be bright. Thanks to the functions that the blockchain has, it is becoming more and more popular and is becoming more and more widespread. Although there are skeptics who doubt the penetration of the blockchain into its implementation in the real world, the potential is still great. The most important thing is that it is used for the benefit of humanity, and not for harm.