If there’s one tech trend that has generated much buzz in the financial sphere lately, that’ll probably be blockchain.
The astronomical gains that blockchain gained over the past year are definitely impressive. This is despite the fact that blockchain is still in its infancy.
Its nascent state also makes it an exciting development as there is still a lot to explore and expect with this distributed ledger technology. And just like the Internet of circa 1994, blockchain is predicted to revolutionize the way we do things.
Originally developed for use with cryptocurrency bitcoin in 2008, blockchain technology has expanded beyond the financial sector with many companies from different industries now exploring and testing how to adopt it into their sector. According to custom blockchain development company IBC Group, blockchain technology has a very wide range of potential applications that can prove useful for organizations, companies and even governments. From supply chain management to smart contracts to banking and finance, there’s a lot of exciting developments that we can look forward to.
What are the opportunities in blockchain?
With blockchain gaining much attention and investments, the technology opens up numerous opportunities for both entrepreneurial pursuits and career paths. Some of the top use cases are already in the late stages of development and are expected to be launched any time soon.
Let’s take a look at these highly anticipated blockchain-based applications and opportunities open:
Financial services
As currencies move away from gold-based valuation, the need for a global reserve currency is ripe. The world money supply keeps getting diluted due to the uncontrolled printing of fiat money and due to dwindling reserve banking. For people who have their money saved in fiat currencies, the problem is its continued devaluation.
Blockchain-based borrowing, lending, and financial services enable optimum transparency. IBA Group blockchain accountants noted that these blockchain-backed financial services are critical in preventing a potential financial crisis as we saw in the economic crisis of 2008.
Payment platforms that run on blockchain also offer several advantages such as lower transmittal fees and faster transactions. There are companies that are developing blockchain-based in payment processors, although there’s still no working product to date. For investors, businesses and developers, this space opens major opportunities.
Smart contracts
Legally enforceable smart contracts are self-executing computer software data that operate in a distributed, shared database. These contracts run on if/then conditions and can be applied to legal or financial transactions or agreements.
Smart contracts, along with decentralized oracles, can enforce a myriad of common legal tasks that are otherwise costly and slow to implement. It is easy to embed smart contracts on the Ethereum network. This characteristic enables smart contracts to be applicable in different sectors such as supply chain management, legal contracts and notarization, and manufacturing.
Some potential actual applications of smart contracts: in the field of logistics, blockchain-based contracts can be used to verify the identification and authenticity of goods at different points of the logistical chain. In the business sector, smart contracts can be used to execute financial transactions or payment only after the agreement has been satisfied, making a breach of contract almost impossible.
Cloud storage
The decentralized file storage sector is another valuable opportunity for blockchain. An example is Sia Tech – a blockchain-based distributed database that offers an alternative to cloud giants Amazon, Google, and Microsoft.
Unlike traditional cloud services, blockchain-based file storage services encrypt data and redundantly distribute them over a massive network of databases. This ensures complete security and availability of stored files. Encrypted data stored in the blockchain are guaranteed tamper-proof. The decentralized nature of open-source cloud storage platforms is game-changing and is poised to revolutionize the cloud business in the near future.
Final Thoughts
Blockchain technology opens a myriad of opportunities, and the three discussed above are just a few of the most exciting trends. It is without a doubt that blockchain will be a major game-changer in the future.
So, how do you prepare for this major technological trend?
For businesses and investors, it is imperative to set your eyes on how you can utilize this new technology to further improve your processes and increase your revenues. For individuals, learning blockchain and developing related skills can help you become marketable in the future. Alongside the entrepreneurial opportunities, it is expected that career opportunities will also open up for those who are equipped with skills in blockchain.
