Future use of the Blockchain Technology
Blockchain technology has a bright future ahead that will bring many benefits to the society, and economically. First, this enriched technology that is initially carried from Bitcoin could possibly make the world less vulnerable to financial disasters—to help avoid circumstances from the Great Recession—and can strengthen the global financial system. Secondly, Blockchain will re-create trust due to the public ledger that will record the user’s transaction history and verify the transactions since records will be available in multiple servers. Thus, there is no way for the information to be tampered with or lost. Lastly, banks will create private Blockchain systems that will process trades in credit derivatives, private company stakes, and equities, which will lead to greater efficiency and lower transaction costs.
According to the chart above, with a distributed ledger, most transactions would be occurred in real-time, making the transactions quicker than the current transactions. On the other hand, the centralized asset ledger, the financial service that is currently being used—like banks—are the observers of a list of transactions, which are single entity controlled.
The above chart shows the current financial transaction settlement time compared to the use of Blockchain technology.
The picture above shows how Blockchain technology will implement into the law of diffusion theory. By the end of 2016-2017, there will be some early adopters (mostly banks), and by 2025, the Blockchain technology will become the mainstream within financial services. As the technology is implemented into the diffusion theory, rule making to use Blockchain technology will begin to regulate its use.
Following from the chart above, it’s predicted there will be a significant increase in spending on Blockchain technology in the forthcoming years.
The technology will improve and transform financial services in many ways. Some examples are authenticating identity and value, accounting for value-new corporate governance, storing value-financial assets such as currencies and commodities, funding and investing in assets, and insuring value and managing risk.
In conclusion, venture capital funding in Blockchain technology will continue to grow as the years continue and as more Blockchain technology startups are created. The Blockchain technology will eventually become the essential transaction technology that will bring many benefits to the world by authenticating identity and value. As this technology continues to grow throughout the future, the value and opportunity will also flourish within our society.