While the world was locked away behind closed doors for the better part of two years, our technological advancement has continued steadily. This progress is in the form of blockchain technology, whose value has seen a significant increase in recent times!
Consider the nearly 100% rise in Bitcoin’s value in 2017 or the forecast that nearly 10% of the world’s GDP will be stored on the blockchain by 2027 at the World Economic Forum. Even though the technology is in its infant stage, it is not surprising that venture capitalists seek to enter the blockchain space sooner rather than later.
Yet, evidence suggests that while undoubtedly useful and widely applicable, the technology may not be the best choice for investors, business owners, or individuals if their use cases are incorrectly applied to the specific problem they are trying to solve.
A strategic evaluation of the value that blockchain can bring to a specific user is the need of the hour. Such an approach can bring up new issues with the technology and challenges that need to be addressed. It can also diversify the already considerable body of published research and use cases of the technology.
Can Blockchain Work For You?
When looking at the value of blockchain to your portfolio or business, it is wise to look at it from various perspectives. A holistic consideration of blockchain’s utility and strategic value can help any stakeholder identify how the technology can help or hinder their goals.
To start with, there is a distinct lack of clearly defined regulations and rules as far as blockchain is concerned. This has created issues about safety and security across borders, limiting the scope of blockchain as far as global integration is concerned.
However, the news is improving on this front! Multiple governments have pledged towards better infrastructure and policies with regards to blockchain and its integration on a global show.
For instance, the Government of India has pledged itself to improvements in blockchain and support for the technology in its National Strategy for the technology. The EU seeks to lead the world in both the infrastructure and applications of blockchain and the rest of the world is not far behind.
From a strategic perspective, there is a lot of scope for the alignment of regulatory bodies across the world in relation to the blockchain. This, in turn, can help mitigate the security risks associated with blockchain, such as wash trading and other such practices.
For businesses, the various applications of blockchain technology are already showing tremendous results. It has proven to be disruptive, creating in-roads in important sectors such as finance, cloud computing, and also data security.
Consider the following example, fog computing is an interesting extension of the concept of blockchain to devices using the Internet of Things (IoT). Blockchain can help minimize the computational strain on devices in a network by safely and securely allowing them to draw on each other. Thus, allowing such networks to run with speed, safety, and efficiency. All of these translate to a better user experience and smoother workflows!
For the individual, unique use cases of blockchain such as DeFi, NFTs, and many others are already allowing them to monetize art, creative work, and important information in ways that have been previously unheard of. Investors are making strides into their digital portfolios.
This is because of a highly enthusiastic community that has facilitated the adoption of blockchain on a wide scale, which in turn has demonstrated its utility. Furthermore, it has helped put the technology on the map towards further improvements, refinements, and applications that are certain to prove even more widely useful in the coming years.
With all of this in mind, it seems that blockchain technology is clearly here to stay and that it can certainly add value in various scenarios.
What You Should Know About Blockchain and the Future
Considering the importance of blockchain today and its extensive list of uses, it is essential to think about the technology from one final perspective: your own. Whether it is for your business or portfolio, evaluating its feasibility and implementation costs on a granular level can be very useful in finding the best way to onboard the technology and reap its benefits.
With a measure of caution and due diligence, blockchain technology is sure to create value for you if and when it is applied correctly and managed carefully.
The article has been written by Vijay Pravin Maharajan – Founder and CEO, bitsCrunch