August 3, 2023
By Anjali Kochhar
Blockchain has revolutionized the way how the digital world works and is perceived today, how fast information travels through connected devices within a fraction of a second. From the global financial meltdown in 2008 till date, no other information technology services have witnessed such tremendous growth and spiked up in over a decade.
Blockchain has been the topic of discussion and debate owing to the rise in popularity of cryptocurrencies and bitcoins which cannot be neglected. Despite facing the heat and its fair share of criticism, blockchain technology is believed to have changed the way money works in the modern day and age. With each passing day, more and more companies globally have welcomed cryptocurrencies and bitcoins as a medium of payment and business transactions with open arms.
Most recently companies like Paypal, Microsoft, Dell, and the like of others have begun accepting this as a mode of payment and transactions.
Here is what some of the prominent Industrialist and global thinkers opine about blockchain
Tyler Winklevoss, co-founder of Facebook, “We have elected to put our money and faith in the mathematical framework that is free of politics and human error”
Bob Grifeld, CEO of NASDAQ said, “The biggest opportunity set we can think of over the next decade.
The Future of Blockchain: Is it gloomy or a mark of a new dawn?
Though in its nascent stage, one of the most significant aspects of blockchain rests in the field of banking and finance which looks promising. The use of blockchain technology eliminates the use of a bank and other financial intermediaries thereby saving time and cost. A direct transaction link between two parties is hence established.
On that note, let us jump into the future and try to investigate how the future of blockchain and finance may eventually look like.
Before the concept of digital payment was materialized and eventually put into practice in our day-to-day life, financial transactions and money transfer were subjected to a minimum stipulated amount. Hence it was then difficult and cumbersome to transfer a small amount of money. However, with the passing of the decade, gradually many companies started creating the option for micropayments or small transfers of money. Innovations around microfinance and micropayment system have led to transferring of small amounts of money without the need to succumb to a minimum transfer amount.
Smart contract and money that is programmable:
Smart contracts and programmable money is the most recent financial innovation in the 21st century. The concept of smart contracts works in the manner that payments can be verified after the transaction is done from one end. Only after the structure and mechanism of transactions are verified, the payment will be credited or transferred to the supplier’s account or the party who is supposed to receive it.
Digital Assets are the new paradigm shift:
One topic that often gets eyeball rolling is ‘Digital Assets’. Many researchers and market experts believe that Digital Assets are the new paradigm shift in the modern-day digital space. These assets have a digital record and Bitcoin is one of them. One of the most striking features of digital assets is that they can register ownership and even transfer ownership. As an example, a residential apartment whose ownership may be included in the blockchain forms a part of digital assets along with the actual physical asset. Thus, blockchain technology can eventually monitor the situation of the digital asset it represents.
The emergence of blockchain in exports and imports and cross-border transactions:
Decentralized financing and the concept of blockchain, bitcoins have eliminated the need for intermediaries, financial institutions, and middlemen, thus far establishing a direct trade and business channel between two parties to a trade or transaction. In doing so, it has also reduced the transaction cost making it a win-win situation for both parties involved. The future of the world economy and global trade will eventually leverage the benefits blockchain technology has to offer.
Not only in finance but there are also many revolutionary potentials blockchain technology has to offer in the field of medicine, healthcare, insurance, sports, travel and tourism, better policing, agriculture, horticulture, engineering, design technology, etc. However, along with all the advantages and revolutionary benefits, the field of automation, digital transaction, and blockchain technology is also fraught with danger which one has to be mindful of.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.