Despite its success throughout the years, there are a lot of people who still think the blockchain hype will go bust in the next few years. While there are several thousands of use cases for this technological marvel, very few of those concepts have come to fruition. The year 2016 will be an interesting one for the blockchain and Bitcoin alike, as all of the VC funds has to start paying off sooner rather than later.
Real Advantages To Embracing The Blockchain
Rather than droning on about the technology that powers the blockchain itself, let’s take a look at the advantages this innovation holds compared to existing solutions. Terms such as decentralization and transparency are thrown around far too often, and we need to dig a little deeper to reach the core potential.
Security is on everybody’s mind these days, as the number of attacks against websites, financial institutions, payment terminals, and companies is growing year on year. Inadequate security protocols need to be upgraded, and the blockchain is a perfect candidate to achieve that goal. Its distributed database aspects removes central points of failure and makes hacking incredibly expensive.
When it comes to putting one’s trust into technology, there is a huge mental barrier to overcome. By embracing the blockchain, that trust comes automatically, as anyone in the world can check up on a specific deal or contract in real-time. This concept can be translated into providing digital ownership, as the paperwork attached to ownership can be digitally attached to the blockchain. As this evidence is tamper-proof and impermutable, there is no need to worry about fraud.
Peer-to-peer dealings and transactions are the way forward, whether we want to admit it or not. Removing the need for third-parties makes business operations a lot smoother, and removes any trust issues from the equation. Plus, companies have the option to make all dealings as transparent or private as they want. This alone makes blockchain technology a solution every company in the world can benefit from.
But perhaps the biggest selling point for the blockchain is its sheer efficiency. No more friction when dealing with contracts or transactions and the overhead costs are greatly reduced to boot. This allows for the creation of more personally tailored arrangements between individuals, companies, and institutions all over the world.
How it Would Work in Real Life
Translating all of these advantages into real life situations, the blockchain will make a major impact on the financial sector. The way bonds and stocks are issued and traded will never be the same again once the blockchain makes its presence felt. Regardless of whether the technology is used in private or public markets, traders will reap the benefits from day one.
Peer-to-peer initiatives also stand to gain from the blockchain with this technology being used as a communications and data storage platform. Collaboration is becoming more and more important in the business world, and having quick access to files while different people are working on them will become a possibility. No longer will one user need to exit the document before someone else can access it.
Keeping the blockchain as open and transparent as possible is the main objective here. However, the technology offers potential for more private solutions, which is why established banks have taken a great interest in the concept. In the end, the blockchain will connect all of the people on this planet with each other, and create a global ecosystem that everybody can benefit from.
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