How Will Blockchain Move Beyond Finance?
In order to grasp the knowledge and the transformation of blockhain technology, we should understand the biggest implementation; the Bitcoin. However, you can think about the blockchain as an operating system just like Windows or MacOS and Bitcoin as an application that runs on the operating system.
As the crypto market grew, it was being criticized for its ineffectiveness to correspond with the performance of existing payment methods as well as not meeting the requirements of the financial systems and governments. However, Bitcoin has been particularly successful at answering the problems it was intended for; acknowledging a comprehensive network to transact and exchange value without any 3rd party. In other words, Bitcoin has replicated the ability to transfer value without the labor. Thus, the trust parties were minimized during the transactions and imitated the various features of cash.
The blockchain works with the following principles; computational logic, peer-to-peer transmission, irreversibility of records and remaining anonymous. While the speculations and criticisms were revolving around Bitcoin, new technologies such as Ethereum and Zcash have appeared and they started to offer a better degree of privacy and platforms for smart contracts and decentralized applications. As the ecosystem develops, the digital wallet offerings and exchanges are becoming more qualified and reliable.
On the other hand, there are companies which are taking advantage of the market by offering lower transaction costs for cross-border payments as well as the central banks which are actively exploring the opportunities and challenges to involve for monetary policy, taxation and lending. But remember, the applications for blockchain technology go beyond the financial assets. The information of goods, credentials as well as the digital rights can be safely stored with a distributed ledger. The internet-of-things devices and sensors can radically spread out what can be potentially built on to of a blockchain.
Nonetheless, the cryptocurrencies have the ability to transform how internet services are delivered; how open-source groups finance their establishments; how we crowdsource expertise; how we spend for content and media and how we exploit capacity to improve forecasts. Cryptocurrencies can one day allow an entirely new kind of organization by letting us securely transfer value and grant resources via smart contracts. United with the improvements in machine learning, this advancement technology will definitely mold the flow of capital, labor and ideas for decades to come. Additionally, it will change the lives of millions of people by providing them the ability to store and send money to one another in a much quicker and safer way.