Blockchain is here to stay. In the following article, we will provide you the latest predictions in 2018 to showcase that the blockchain technology will continue to gain traction rapidly in numerous fields.
Blockchain technology is a rapidly developing technology that maintains a set of continuously growing records, termed as blocks. Various digital transactions from various different industries, such as finance, retail, and healthcare, are carried out within the blockchain network. This blockchain network- intranet or internet - is updated, and involves the validation of all parties involved in a given transaction. A new block is added to the older block in a linear, chronological order after validation. The entire chain is regularly updated and any changes made are reflected in all copies. These blocks in a blockchain are linked and secured using cryptography, thereby meeting security constraints. According to Statistica Report 2017, the global blockchain technology is predicted to grow to 2.3 billion U.S. dollars by 2021. This highlights the rate at which the blockchain industry is growing. Considering statistics and benefits, blockchain predictions in 2018 aim at collaborating with other emerging technologies to bring numerous profits to organizations.
Blockchain brings in positive outcomes not only for companies but also end users. The major advantage of this technology is disintermediation. Blockchain technology is a distributed ledger, which eliminates the need for a third party organization and makes use of a distributed database. This helps in lowering transaction costs. A third party organization uses a centralized database, which enhances the risk of fraudulent activities. The issue regarding the security and privacy is eliminated with the use of blockchain, since all transactions are independently processed and verified. Another benefit offered by blockchain technology is the higher availability of systems. Even if nodes in a peer-to-peer network stop working, the network as a whole will continue to work. Moreover, all transactions made on blockchain are immutable, i.e. they cannot be altered or deleted. This helps in resolving the security and privacy issue. Blockchain technology also helps in faster transactions and can be processed 24/7, thus helping users to reduce the time required for interbank transactions.
In 2018, there will be continuation of blockchain trends in various areas, benefiting organizations with innovation.
Higher use outside of finance: Blockchain technology benefits numerous areas. According to International Data Corporation Health Insights, 20% of organizations will have operationalized blockchain by 2020, highlighting the fact that 2018 will see significant changes in this direction. Moreover, blockchain technology in 2018 will see significant progress in HR and recruitment process, where blockchain CVs will streamline the selection process by identifying the details about candidate qualification and other relevant expressions.
Internet of Things: Blockchain technology and IoT work together to improve business processes and even our day-to-day life. Bitcoin could be used to safeguard our smart homes from cyber-burglars looking to steal our data. Additionally, bitcoins would prove ideal for automated transactions between machines.
Smart contracts: Smart contracts are made possible by blockchain technology because of their consensus-driven nature. Blockchain technology helps fill contracts once the agreed-on conditions are met, such as paying bonuses when targets are hit or dispatching an order when the payment is completed. Insurers AIG teams are piloting blockchain technology for the smart insurance policy.
Cryptocurrencies: 2018 will be a great year for cryptocurrency, which will solve the traditional issue of risks management. With the creation of financial instruments, we could see trillions of dollars flowing in financial institutions in the coming years.
Artificial Intelligence based applications: AI-based applications will merge into the mainstream. AI systems need to interpret and fuse data from multiple sources. Additionally, they need their data to be distributed to satisfy real-time requirements. These requirements are fulfilled with blockchain technologies. 2018 will see great progress in AI-based applications.
Blockchain not only offers a new technology, but also a new vision and platform to secure digital assets. Blockchain predictions for 2018 are quite promising and it is undoubtedly going to amaze both organizations and end users with path-breaking innovation.
Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.