How the Blockchain Is Empowering Today’s Societies
Currently, blockchain technology is in the spotlight. According to many experts, the best is yet to come for this new technology that’s regarded as revolutionary and powerful, having the potential to build new and efficient world societies. Moreover, this new technology can foster the following:
The next step in human and social evolution
A blockchain is a distributed database of digital transactions which are shared among participants of this network. Once information is entered it cannot be erased. The most popular example is Bitcoin.
In the past, humans have coordinated with different goals and interests. This is also called genetic favoritism in which advantages are given to relatives. Today, this system is partially replaced by a new level of cooperation. In this new society, trust is increased between different participants while intermediary institutions are disappearing. Therefore, it can be claimed that the blockchain allows humans to build a digital society with collective awareness.
So, what does this mean in regards to interacting in future societies and online communities?
Blockchain technology is characterized by a decentralized network, one that will establish a new form of efficient, liberal and democratic capitalism as well as a sustainable and sharing economy.
Blockchain explained in 3 paragraphs
The blockchain is more than just a technology supporting cryptocurrencies. It is a tool which can decentralize structures of monetary transactions and increase trust among its participants.
The most popular cryptocurrency which is linked to blockchain technology is Bitcoin. At the same time, the currency is very controversial. Many banks don’t find it very promising to face a global monetary market of anonymous transactions which is not controlled by the government.
The current digital economy is built on the concept of trusted authorities. On the other hand, the risks are high that third-party sources can be hacked or manipulated. Blockchain technology resolves this issue. It revolutionizes the way transactions are being made without compromising the privacy of the participants involved. Moreover, all online transactions can be verified at any time. Surprisingly, this even works very well for freelancers who work online.
What are the advantages of this new technology for today’s societies?
The advantages outweigh the technical challenges with the technology acting as an engine to accelerate the growth of the digital economy where users create undisputable records in a public database.
Blockchains also shift power away from financial institutions and governments. Control is redistributed among its participants. In this way, the network is more transparent and users can build trust, resulting in increased group cooperation.
Additionally, the blockchain enables societies to build an open, decentralized and scalable digital economy that creates enormous opportunities. Many such opportunities are yet to emerge but individuals and companies have already begun to embrace this disruptive technology.
It is no surprise, therefore, that experts claim blockchain technology has the potential to help transform and improve society’s structures.
How 4 top blockchain benefits are transforming business operations
Many companies have already adopted the new technology and are achieving the following benefits:
- Increased transparency: transaction data is not only accessible to all participants, but also the data stored on a blockchain is more accurate, consistent and transparent.
- Enhanced security: the fact that data is stored across a network of servers makes it very difficult for hackers to access.
- More efficiency and speed: the blockchain technology streamlines and automates processes, which results in a higher speed and efficiency. Also, every authorized user has access to the same data. Thus, third parties are not required while trust is increased.
- Reduced costs: it is clear that every company is looking for a way to reduce costs. However, with the blockchain, no intermediaries and guarantees are required. Instead, trades can be completed at a faster speed.
How challenges are still preventing widespread adoption
The main problem of the blockchain is the high energy consumption. This applies particularly to the network’s miners that are trying to solve many problems in order to validate numerous transactions on their PC.
According to Deloitte, a central authority is required to oversee the enormous amount of recorded transactions across a vast and decentralized network. The main reason is that blockchain is slow compared to traditional transaction processing systems. Bitcoin can handle only three to seven transactions per second. Ethereum is roughly twice as fast at 15 transactions per second.
It is no surprise that many observers agree that blockchain technology cannot scale. On the other hand, new blockchain technologies such as Stellar and Ripple are currently working on creating a more efficient model with higher transaction speeds.
Blockchain is open source and allows full customization in various industries
Due to the fact that blockchain technology is open source, every developer can contribute his share to the platform. This is also the reason why there are quite a lot of blockchains already in the market.
Bitcoin is a perfect example of how an open-source project runs, with contributions from 450 different developers from different countries. The open-source code has further resulted in innovative applications.
Developers can deliver their share and develop a blockchain which is customized to a large degree to exercise specific functions in industry. For example, it is often the case that medical records of a client are scattered between healthcare institutions. In order to keep track of this data, health records could be implemented that are running on a blockchain. In this way, health data can be updated, read and shared across numerous services.
Further blockchain applications that prove the way people live is changing dramatically
The healthcare sector is not the only industry which has adopted the new technology. According to an article in The Guardian, the blockchain has also been implemented in the following areas:
- Voting: this startup is developing blockchain-based voting systems which increase security and transparency and can be administered without a central authority. This is very useful as current online voting platforms are exposed to manipulations.
- Power generation: Lo3Energy has a developed a blockchain which allows homeowners to trade energy that their solar panels have generated. Without a centralized price-setting intermediary and other potentially expensive third parties, the user can set his own price.
- Streaming: blockchain-based music streaming services are in the spotlight. Instead of paying Spotify a share, artists can use the new Blockchain system Voise to set their own price and receive the full amount whenever their music is streamed by a user.
How blockchain technology is creating jobs
Today, the blockchain is being applied in financial and in non-financial areas. While many analysts have claimed that blockchain technology is making financial institutions obsolete, the opposite is the case.
Cryptocurrencies do not pose a threat to financial institutions. In fact, the world’s biggest banks are embracing the new technology. In doing so, they are conducting comprehensive research to exploit opportunities and increase their financial services.
For example, the LHV bank in Estonia found the blockchain secure for the processing of banking-related applications. However, there are people that are not in favor of its most recent developments. This is no surprise because Bitcoin was initially created to avoid the involvement of financial institutions. Even though it is very likely that banks will adopt the newest platforms, many Bitcoin enthusiasts would be happier if this weren’t the case.
Why Blockchain programming needs skilled developers
Without question, blockchain is a revolutionary technology which comes with numerous advantages. It can be seen in these articles that disruptive technology is already in use in many industries. This also means that the new technology does not pose a serious threat to the established business models or to financial institutions.
Further, banks have learned to consider this new development as an opportunity to grow and to develop new services that are based on blockchain technology. There are various banks such as Santander Bank which are in need of blockchain developers.
Due to the open-source code, blockchain programming is becoming a standard in an increasing number of companies. This also means that new technology creates more jobs and serves as an engine to push the development of a digital economy forward.
Blockchain network and the Internet of the Things (IoT)
The Internet of Things is becoming increasingly popular. Most of the IoT platforms are based on a centralized model. Companies which are dealing with blockchains are searching for a decentralized solution to take advantage of the tremendous opportunities.
For example, IBM and Samsung have developed an “Autonomous Decentralized Peer to Peer Telemetry” (ADEPT). In other words, this platform is a decentralized Internet of Things and uses three protocols: BitTorrent, Ethereum, and TeleHash.
The key lesson
To conclude, blockchain technology is empowering society. The best thing is that the development of this disruptive technology is still in its infancy. As many advocates claim, the best times of blockchain are still to come.
However, it can also be claimed that current societal structures require a more revolutionary approach to optimize and facilitate processes and to reduce costs. Blockchain technology might well be able to solve these challenges. In fact, the blockchain has the potential to build new and much more efficient world societies.
I’d like to help you conduct research on how the Blockchain technology can help you gain a competitive advantage — it’s what I do best. Just drop me an email to explore the tremendous opportunities that come with adopting this new technology.
Editors’ Note: The opinions expressed in this article are those of the author and do not necessarily reflect the values or opinions of CreativeTribes.co.