It is now pretty well established that blockchain technology has huge potential – especially where online transparency and safety are concerned.
What is Blockchain Technology And Why is it So Important?
It is now pretty well established that blockchain technology has huge potential – especially where online transparency and safety are concerned. In the grand scheme of technological applications, development, and even for every other sector out there, blockchain will be instrumental in the coming years and decades. Industry leaders are already heavily invested in this technology, and for very good reason.
And, most people will associate blockchain technology with cryptocurrency like Bitcoin, but the fact is that the technology applies to a far wider spectrum than just digital currency. The truth is, blockchain tech is probably the greatest thing since sliced bread. This is why it is important to look at what exactly blockchain technology is, and what the applications are. Furthermore, what will the future hold for blockchain technology?
The Blockchain Market is Growing Exponentially
According to Statista’s statistics, “Forecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 39 billion U.S. dollars in size by 2025.” Since just 2018, only in the span of three years, according to the same statistics the blockchain technology market has grown from $1.2 billion to $7 billion now in 2021. The next three or four years will be historical for blockchain.
Blockchain Use Cases Statistics
Another very telling statistic is use cases for blockchain technology. According to a Statista survey, almost 50% of respondents stated that they are focused on using blockchain not only for cryptocurrency but for “secure information exchange.”
What is Blockchain Technology?
After the creation of Bitcoin by the mysterious persona known as Satoshi Nakamoto, blockchain technology was revealed to the public. It is a revolutionary system that is transferred via the underlying P2P or Peer-to-Peer protocol. The key process that distinguishes blockchain is the fact that it is “decentralized.” The key part of being decentralized is that; the digital transactions and assets using decentralized technology do not involve any third party, and are secure and transparent. Blockchain data cannot be deleted or modified after being created. Another key part of blockchain technology is distributed ledgers.
This is the first time in human history that technology so powerful in the sense of transparency, security, and fraud-free peace of mind, has been available to all of us. A traditional centralized system does not have anywhere near the stability or security of a blockchain process.
Blockchain is distributed via P2P, which is a system of computers talking to each other and sharing information -much more anonymous and safer than a single client-server solution. With P2P, there is little chance of data loss because if one computer in the network goes down, another picks up the transmission. Most importantly a decentralized system has no authority looming over it and blockchain is highly encrypted meaning that cryptographic algorithms take care of the security of the data.