Some of us have heard the term “Blockchain” here and there these last couple of months. If you are like me, you feel as though the prospect of it has developed an overwhelming enthusiasm and nerve-racking-hype. Stark change is difficult to understand and accept, but such a groundbreaking technological advancement opportunity rarely presents itself in such a promising way. So, instead of shying from Blockchain’s glooming approach, let’s instead understand it and further understand how it will change the very fabric of our economy and daily lives.
Blockchain is a decentralized platform that connects people and allows for transactions with cryptocurrencies, although experts believe that other applications of blockchain technology will be numerous. Blockchain builds a secure peer-to-peer network that facilitates instantaneous and costless transactions, all while recording and storing all information. The potential application of blockchain technology is endless and left to be uncovered in the future.
Blockchain seems to be an improvement to our current financial and transactional systems in every sense. Perhaps the greatest part of Blockchain is it’s huge benefit to the world’s emerging economies. Developing countries are finding uses in Blockchain in banking, financial services, supply chains, agriculture, and land ownership. Blockchain reaches those who do not have easy access to banking services. Forget about fees and delay times! Frontier markets often find obstacles for growth in political turmoil and corruption, so, although not being an absolute solution, Blockchain will help. Blockchain’s identity services will even enhance freedom of speech and anti-corruption activities.
So, how will Blockchain affect our daily lives and our wallets? One essential factor that sellers and consumers face in the market today is uncertainty. Will you get paid for your product? Will you receive the value of what you paid for? Well, imagine an economy where tracking, tracing, and trust are guaranteed. Without economic uncertainty, commercial potential will be realized and transactions will boom. Blockchain will include personal IDs, professional credentials, and certificates to curb fraud and theft. With the bureaucratic contracts and records turned digital, the way humans intact and transfer value will be revolutionized. Every process, task, and payment will have a permanent, secure, and traceable digital footprint that could be identified, validated, stored, and shared. This means intermediaries, such as lawyers, banks, and brokers, will no longer be necessary. Blockchain is estimated to generate the greatest economic value across the healthcare, government and public services, manufacturing, finance, education, logistics, and retail industries. It will also bring improved benefits for business services in communications and media, while wholesalers, retailers, manufacturers, and construction services. A PxC analysis shows blockchain technology could grow global GDP by 1.76 trillion over the next ten years.
Blockchain technologies are expected to boost the United State’s economy by 1.76 trillion dollars by 2030. Alongside the US, China, Germany, Japan, the UK, India, and France are estimated to have the greatest net benefit (all over 50 billion US dollars). Blockchain's success, however, depends on a supportive policy and business ecosystem that is ready to embrace technological improvements, meaning many technological, governance, organizational, and societal barriers have to fall. For that to happen, digital transformation to improve the economy must become a top priority. All of this is not to say that we should all dive face-first into blockchain without understanding how it is likely to take hold. Blockchain is foundational; its adoption will be complex, and it will take many years to integrate into our economic and social infrastructure. It certainly is exciting though, and I cannot wait to partake in humanity’s next financial and commercial system.
Sources:
https://hbr.org/2017/01/the-truth-about-blockchain
https://www.helpnetsecurity.com/2020/10/16/blockchain-impact-global-economy/