Blockchain Technology and How It Will Change the World
There is a lot of buzz around about bitcoin and the Blockchain technology right now and for good reasons too. According to the World Economic Forum Report, by the year 2025, about 10% of GDP will either be stored on Blockchain or a Blockchain related technology.
This report means that if you are involved in business, this is something you need to take note. We are going to address why and how Blockchain will change the future, but before that, let’s discuss what Blockchain is and what it does.
What Entails Blockchain Technology And How Does It Works?
Originally, Blockchain was developed as the technology behind cryptocurrencies like Bitcoin. The Blockchain is a vast ledger distributed globally, running on thousands if not millions of devices and is capable of recording and storing anything valuable. Anything from equities, bonds, money, title deeds, contracts and other different kinds of assets can be saved or moved privately and securely from peer to peer. With Blockchain, trust is established and not by authoritative intermediaries such as banks but by, cryptography, collaboration, network consensus and original code.
How Blockchain Technology Could Disrupt Financial Markets
With Blockchain, two or more individuals or parties who do not even know each other can make transactions, forge agreements and also build value without necessarily relying on any intermediaries to verify their identities, establish trust or carry out critical business decisions.
People use one decentralized online platform to share information, the internet. However, when it comes to transacting value like money, for instance, it gets hard and the need for other centralized institutions like banks is needed. However, with Blockchain, there is the intriguing possibility of making this transactions and transfers online with complete security. Blockchain fills three significant roles, which are recording transactions, establishing identities and establishing contracts. Blockchain creates integrity and trust in a way that no one can edit it without the corresponding keys.
The financial sector always comes first when the impact of Blockchain is discussed. Not even the most technologically advanced countries have efficient systems that move money between parties. From identification, verification to security and fraud, there are still significant gaps when it comes to seamless financial transactions. However, Blockchain can change or improve these aspects of the sector significantly.
Blockchain technology removes any need for the third party to guarantee transactions. Through the use of distributed architecture and powerful encryption, this technology coordinated the agreement between two or more parties in transactions. The best part is that it does that in a way that is extremely resistant to interference.
The process might sound complicated, but it is simple and even sophisticated. You see, the entries in digital ledgers are created then protected with cryptography, and it becomes more and more secure as more people use it. With a promise of such a disruptive technology, most firms in the financial industry are considering using Blockchain solutions.
How to Invest in Blockchain
Purchase digital currencies- Investing in Blockchain could involve purchasing digital coins although most people stay clear of them due to vitality. However, digital currencies are revolutionizing the financial system, and they do not work with the same rules as other investment options. For instance, Bitcoin does not need institutional backing for it to be a success. Stockpiling such cryptocurrencies can provide you with very high returns on your investment.
Stocks, Angel funding, and Start-up ventures- Investing in companies that use Blockchain services can be a low-risk venture. Investing in start-ups that do not issue ICOs but use Blockchain could also work because when the start-up is successful, you will be a part of the company and get dividends after stock purchases.
Blockchain Opportunities in The Future
Blockchain will be used more in the financial sector, industries and even in the governments. There are so many opportunities to invest in Blockchain including Bitcoin and Ethereum. Ethereum especially is a cryptocurrency to watch out for because it has more potential to grow than Bitcoin.