Blockchain technology refers to a system that in controlled using multiple devices, all of which have equal access to the entire framework. All users have singular access to the platform, meaning that no one person can have two identities within the same framework. The system is powered by all the devices, and does not have one central administrating body. This means that control is exerted by all involved parties, simultaneously. Blockchain has been used to create a number of systems. It has also proven very useful in connecting different entities to one single network.
The most relatable example of Blockchain technology use is the creation of cryptocurrencies such as Bitcoins. These virtual currencies are valued accordingly to supply and demand, not based off of a monetary currency. Bitcoins are now being used in trade to purchase goods and pay for services. The currency is very volatile, and tends to lose value almost completely when the demand is very low. That being said, the use of blockchains to create virtual currencies is an illustration of just how powerful the system is. It also opens up the door for more industries to incorporate blockchain tech into their operations. This would be a very large step in terms of development and increasing a company's competitiveness, especially if the process is successful.
There are very many advantages that come with the use of blockchain technology. The main one is that such a system enhances a lot of transparency. Because everyone is connected to the platform, individuals can monitor all transactions that are occurring within the chain. Also, they are able to account for each and every action because it can be traced back to an individual user if need be. Such a system also enhances effective record keeping because all payments for example are recorded and availed to everyone with access to the system.
Blockchain technology enhances data sharing because all the information can be stored in one place, and accessed by everyone if need be. That is not to say that the system is open to the public. On the contrary, blockchain systems are largely very covert, and only users have access to them. External individuals cannot access any data transferred through such a system.
Seeing all the advantages that come with this form of technology, it is expected that there will be several improvements to be witnessed in the industry over the course of next year. Companies will definitely be looking into how they can incorporate Blockchain development in their systems in order to enjoy these advantages. The Blockchain industry itself will also be tweaked and improved to make it more attractive to users. Such improvements will also allow for blockchain use in different capacities by widening its scope. With such rapid growth, the system will also need some form of regulation to ensure that it is only used for the right purpose. For example, there is a growing concern that the lack of oversight on Bitcoin use has encouraged individuals to start using virtual currencies to conduct illegal activities. Here are the upcoming major improvements to Blockchain in 2020;
In 2020, it is expected that a lot of start ups based on blockchain technology will be launched. Their functions will be very diverse, ranging from research, Blockchain development consulting, Blockchain innovations, amongst others. It is also logical to expect a lot of cryptocurrency start ups aimed at giving Bitcoin a run for its money. Their chances of success might, however, be in doubt as witnessed with other cryptocurrencies launched in the past.
The main beneficiaries of blockchain systems will be industries in the fields of finance, and economics. This is because their systems can easily be modified to fit the new developments. This year has already witnessed several payment platforms incorporating blockchain into their processes, to make monetary transactions easier.
Experts have also predicted that more regulation will be required to govern the use of blockchains. Due to their lack of a superior authority, blockchain systems are very independent. This translates to minimal oversight and a lot of freedom in terms of what such a platform can be used for. While this may attract more consumers to get on board, it also leaves room for a lot of ambiguity in terms of the rules governing blockchain systems. The need for rules will become more important in the face of transnational transactions because different contries have different consumer protection rules.
In line with the above, countries are also expected to begin using blockchains both in their operations and to create national virtual currencies. For example, state agencies often transfer information back and forth amongst their different departments. It would be much easier if all this information was contained within a single system that can be accessed by all involved parties. The same would apply or large multinational corporations. The catch would be keeping all this information secure and free from interference with third parties, so Blockchain development teams will be needed to handle this. Some countries have also mentioned that they will begin to develop their own cryptocurrencies. This will create an entirely new aspect to trade, and the effects of such a development remain to be seen.
Also, there will be an increase in the demand for Blockchain experts, hence an increase in Blockchain development companies. such experts will provide knowledge and training for new companies joining the field.
There is no denying that Blockchain technology is the next big thing in terms of industrial development. In future, these systems are bound to grow, and be incorporated into different sectors of the economy. Blockchains are efficient to use, and they do not come with some of the drawbacks that exist in current technology. They are providing very important solutions to problems that companies have struggled with for the longest time. That being said, any rushed development could see these systems collapse even before they are well established. Therefore, it is very important that any improvements and adaptations be done gradually, and after a lot of research. A lot of experimental work will be done on blockchains before they become an integral part of the economy.
I, Kuldeep Kundal, the CMO of Cyber Infrastructure (P) Limited, and expertsfromindia.com is the trademark of the CIS. I have been publishing technology content for the last ten years. Being inquisitive towards technology and management strategies has impressed upon me the mantra of success is to gain knowledge to share it.