Often considered as a nascent technology, blockchain was introduced about a decade ago. Although the technology has not been around for too long, one can get an idea of its importance by looking over its future revenue projections. Revealed by Global Market Insights, Inc., blockchain technology market revenue is expected to reach $16 billion by 2024.
As per the information provided by Global Market Insights, Inc, a market research firm, blockchain technology will be high in demand by financial institutes for several reasons. Since blockchain is capable of enhancing efficiency and reducing the expenditure of various operations in financial organizations, it will be primarily needed by several institutes.
It was suggested that applications such as documentation or KYC, trade finance, cross-border payment, identity management, etc, hold substantial significance for financial organizations. As blockchain is capable of reducing the operating costs of these applications, it will be required by a plethora of financial companies. Moreover, for the same reason, the blockchain mass adoption in the near future is anticipated by the research firm.
Explaining uses cases, future and potential of blockchain to BlockPublisher, Jeremy Britton, CFO of BostonCoin, said:
Blockchain has been used in real estate transactions and legal transactions, due to its immutable and unalterable nature. Exchange of contracts and exchange of finances can now be done automatically without escrow, trust accounts or legal representation. Blockchain is being considered for medical records and other privacy uses, and will continue to find new business uses, not just financial settlements.
Apart from improving efficiency and reducing costs, blockchain is credited for expanding the crypto market. The growth of the crypto market, on the other hand, is mentioned among several driving factors of blockchain technology.
Bitcoin, the world’s first cryptocurrency, is built on a blockchain. After the inception of bitcoin, the underlying technology, blockchain, paved the way for several other crypto assets as well. Soon after its introduction to the world, the crypto assets, especially bitcoin, disrupted the financial system of the world.
Despite exhibiting flaws, the financial system composed of fiat currencies and banking institutes were never strongly challenged before the launch of bitcoin. After the introduction of decentralized digital currency,w, bitcoin waged war against fiat and financial institutes such as banks.
Bitcoin is an inflation-free digital asset that can’t be controlled by any authority. As fiat currencies are manipulated by authorities for their best interests, bitcoin provide a much better alternative by only obeying the fundamentals of supply and demand.
With the limited supply of 21 million, bitcoin is not like the fiat that can be printed as much as needed. As the financial system had been circulating currency that devalues over time, bitcoin was viewed as a very viable payment option. This explains why masses had been and will be attracted by bitcoin thereby affecting the dynamics of the financial system.
Blockchain, a decentralized technology capable of offering several advantages to users. By allowing encryption of data on blocks, blockchain network make tampering of important data such as transactions or medical records, impossible. Apart from offering secure solutions, blockchain offers transparency. Data stored on public blockchains can be viewed and tracked very easily by both, sender and receiver.
While the elimination of third parties is quite useful, the applications of blockchain are not limited to the finance sector. Blockchain solutions in healthcare department are also expected to increase drastically over time. With immutable data recorded with timestamps, blockchain possesses the capacity to innovate the healthcare sector.
By using private or permissioned blockchains, details of patients can be easily stored on blockchain network. As the data of patients should only be accessible by either patient or doctors in-charge, the access of information needs to be very limited. With private blockchains, only certain people are allowed access to the information.
Now as data on a blockchain is immutable, the history of patients can’t be changed or corrupted. Apart from that, due to transparency, the patient will have control over their data they can share details even against some financial incentive with institutes they are comfortable with.
In addition to patients, pharmaceutical companies can also utilize blockchain technology by adding details of drugs on a blockchain and tracking it throughout. In this way, companies can ensure that drugs aren’t stolen and sold illegally in between the supply chain.
Although blockchain has a long way to go before reaching $16 billion, its use cases,, have already surpassed $200 billion mark. Let’s see if blockchain can innovate and prove itself in other sectors as well.