While governments and regulators are taking a cautious stance when it comes to the use and regulation of Bitcoin and other cryptocurrencies, the underlying future technology – blockchain – has gone from strength to strength.
The future of blockchain technology is bright and unchangeable. It secures record of transactions and data. It uses are far-reaching and appealing to companies looking to respond to the technological era. Therefore, blockchain technology strengths apply to any number of industries; not just digital currency.
High-Level use of the blockchain technology
So what is the main attraction to blockchain? The technology has an extremely effective way of securely storing vast amounts of sensitive data. This opens a digital ledger system up to use by governments. Digitization has been underway for many years. However, the next step is to ensure security and transparency at the government level.
Dubai is already on course to implement an entirely distributed ledger-based system for its government by the end of 2020. The potential at this level is fascinating, as data leaks would be far less likely. Therefore, voting could be wholly based on the blockchain, thus eliminating the possibility of rigging.
If governments and powerful organizations start to accept and implement blockchain, the next stage will be to establish a refined version of the technology. The secret behind this lies within the consensus mechanism – the algorithm used to confirm transactions on a blockchain.
For example, Bitcoin uses proof-of-work. However, other cryptocurrencies have developed alternatives, such as proof-of-stake and proof-of-concept. Each relies on a different type of proof.
For blockchain to go global, there would potentially need to be one overarching algorithm. As this would mean that companies would be able to interact across their blockchain systems easily.
With a standardized algorithm mechanism running, blockchains would then be able to align across enterprises, allowing for inter-blockchain transactions. This would be an extremely attractive prospect. It would represent speed, automaticity, and excellent value for money for companies, as well as being ethically superior regarding transparency and security.
There is even the possibility that much larger blockchains will be created and used by multiple companies. This would be a massive step forward for globalization. With the existence of cryptocurrency, it could pave the way for a move towards a single, universal currency in the future. Currently, if such a thing were to happen, it is very likely that the currency adopted would be Bitcoin, due to its massive level of market dominance.
Future of blockchain technology applications
Of course, the potential uses for a standardized, refined blockchain system are almost limitless. The first area to target would be those industries that are most prone to fraudulent or immoral activity. As this is the main reason that blockchain is referred to as a disruptive technology. It is conceivable that a universal approach to the blockchain could completely eradicate digital fraud.
Once the public adopts the technology, then they will be able to assume effective control of their data. This includes, identity and security-sensitive information would then be secure and private. At the moment, the data industry is worth billions, but firms make money from other firms by exchanging our data. The ability to store that data on a blockchain would empower the owners of that data to share it when – and how – they wanted.
Of course, as soon as a government decides to use blockchain on a large scale, regulation will follow. Most likely, the main focus of regulations is on standardization. For example, the way in which different blockchains can operate, rather than on restricting usage by the public. Indeed, the application of laws would go some way towards easing fears by many that this future technological era is unsafe because it is impossible to understand. It would mean the dawn of a new era of potential for the digital world.
While a lot of the future of blockchain is partially speculative at the moment, it is undoubtedly the case that blockchain adoption is increasing. This shows that the underlying technology has stepped out from the shadows of its once more illustrious bigger brother.