A lot of people have been wondering as to why blockchain technology suddenly became of such interest to financial institutions around the world. There are several reasons attributing to this status with 2015 having been a year of many success stories. In the end, these stories might lead to the global adoption of Bitcoin as well.
What Makes The Blockchain So Interesting?
One thing has to be said, the Bitcoin and blockchain ecosystem has come a long way since its inception in 2009. Back then, hardly anyone knew about blockchain technology and even fewer people saw a potential future for such a disruptive innovation. Fast forward to today and various major banks are exploring what blockchain technology can be used for.
Such a sudden change in behavior does not occur naturally, even though the appeal of creating a public or private ledger can be quite overwhelming. Even though Bitcoin is running a completely public ledger that broadcasts all transactions in real-time, financial institutions are looking to take a slightly different approach.
Blockchain technology can be used to create private ledgers, which will still act as a distributed form of accountability. As a result of building a private ledger, financial players would be able to reduce the time associated with clearing and settlement, while also allowing private chains to communicate with other institutions.
Back-office infrastructures could be undergoing a major facelift thanks to blockchain technology, enhancing the overall speed and security of how daily operations work. At the same time, blockchain technology can reduce overhead costs and help improve error reduction over time. It only makes sense to at least explore all available options.
Despite plenty of Bitcoin community members feeling regulation will only harm Bitcoin growth, in the long run, a legal framework gives the digital currency a more legitimate appeal. The blockchain will see its status amongst technology giants “elevated’ as well, which is an added bonus.
Last but not least, the blockchain wouldn’t be the phenomenon it is today without looking at the payment structure. Even though there is so much more potential to unlock, advancing the technology for payment purposes will play a big role over the next few years. The current Bitcoin block size debate is one example of that, as developers are looking at ways to allow for more transactions to be confirmed on the network at the same time.
Blockchain Technology In 2016 And Beyond
Just because 2015 was an overall positive year for blockchain technology doesn’t mean 2016 will automatically bring more of the same. A lot of work has to be done to make next year somewhat decent for the blockchain in general, as projects will have to come to fruition over the next 12 months.
Furthermore, 2016 will be a critical year for Bitcoin as a whole. The popular digital currency has gained a lot of attention in 2015, and it will be interesting to see what will happen next year. With the upcoming block reward halving, many investors and enthusiasts will be keeping a close eye on the Bitcoin price.
What were your thoughts on Bitcoin and the blockchain in 2015? How will things evolve this year? Let us know in the comments below!
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Also published on Medium.