Looking at the future of blockchain technology in the next five years, we would have some key points to talk about. Over the years, companies have used this technology to solve various solutions in different business areas. The global spending on blockchain solutions in 2021 was around $6.6 billion. This figure is expected to triple in 2024. And it highlights what we should anticipate in the next five years.
Blockchain now has significant influence and adoption from companies across different industries. Cyber Security, data privacy, and transparency are some of the impacts this technology brings to the global market. So, what does the future hold for blockchain technology?
Blockchain is a distributed or shared ledger that collects data and records transactions in block-like patterns. This technique makes it difficult for hackers or unauthorized users to access sensitive data or make any changes.
This technology works to allow the owner to share data with other members by authorization. Blockchain uses cryptographic keys to grant access to multiple users and prevent access to unauthorized parties.
Blockchain technology came into the limelight in 2011. The founder, Satoshi Nakatomo, started this technology for transactions of bitcoin. It was a fast and effective way of collecting, sending, and recording transactions with cryptocurrencies, which was new to the world.
The use of Blockchain, however, spread as other digital currencies began to surface. Over the years, blockchain’s impact has spread across different applications. The application of blockchain has also grown wide to various sectors across the globe.
Although blockchain’s relevance initially was for the exchange and transaction of digital currencies, it has since found uses in other industries. Today, the impact of this technology in daily life is now more noticeable. This section will discuss some of the applications the world has seen in Blockchain across different industries;
Companies are significant beneficiaries of blockchain technology. Before now, they stored data and records in centralized systems, which was not efficient enough for companies. The emergence of blockchain technology provided this guarantee. Effective data recording and transactions in a decentralized system have offered instant solutions to many problems. Now, businesses get organized workflow and transparency all through.
The legal field is another sector that has seen a fascinating blockchain application today. Legal agencies make use of smart contracts, which are blockchain-based technology. Smart contracts are features that automatically execute terms and agreements between two parties.
Developers can write the terms in the form of codes, and the software executes the systems in due time.
Real estate is another big industry that exploits the broad coverage of blockchain. They benefit from buying and selling real estate using tokens as physical assets. The use of blockchain has improved the security and transparency of transactions between agencies.
We have just talked about blockchain’s impact on today’s society. But what is the future of blockchain technology in the next five years? Although this future is already happening, the potential of this technology can only become more evident with time.
However, I have outlined some of the potential and possible influence of blockchain in the next few years;
Back to where it all started –Cryptocurrency– blockchain in the digital currency world would undoubtedly see some significant changes. And that is already coming in the form of central bank digital currency. This concept is born from the idea of countries looking to build their digital currency as legal tender. This change could be one of the biggest revolutions in the world’s financial sector.
A good example is El Salvador; they have already accepted bitcoin as a legal tender. The UK, China, Russia, and Japan are examples of countries that support this idea.
NFT, which is one of the most recent applications of blockchain, also holds great potential. It involves creating and owning digital assets from arts, music, fashion, designs, etc. Nike and Dolce and Gabbana are among the first fashion brands to take this technology to the next level. With users being able to model digital assets and retaining the rights, it will be interesting what could be in 5 years.
The IoT concept is one of the best beneficiaries of blockchain. IoT’s idea of interconnection between gadgets would need the protection of blockchain technology. We are already seeing how blockchain has made an impact in this area. However, there could be room for advancement in the next few years.
It is not just blockchain. Who else is not going green? Environmental impacts of human activities have made it a necessity and not an option. Blockchains’ immense capacity, which results in significant energy emissions, has brought worries about their carbon footprints.
However, we could be experiencing better and more renewable energy soon. Ethereum is already leading the pack with its plan to build a model that would reduce the environmental impacts of its output. So, the future of blockchain technology is also green.
Blockchain technology’s influence cannot be overemphasized. And the technology’s applications would disrupt some industries, which seems to be already happening.
Banking Sector; Exchange and bank transactions could be slow, costly, and frustrating. Blockchain offers solutions with its cost-effective, fast, and reliable technology.
Health; Blockchain’s sophisticated alternative would beat the traditional system of storing medical files in centralized systems.
Cybersecurity; This technology already offers businesses excellent services that include data protection from cyber attacks. More companies will look to adopt this method in the next five years.
The future of blockchain technology in the next five years will continue to get clearer every day. We have discussed some of the factors that have significantly impacted this technology. However, the world is already experiencing the impact of blockchain in various industries. But we are anticipating the potential upgrade with blockchain’s application in digital currency, NFT, IoT, and other areas.