Will Blockchain Technology Become a Part of Everyday Life?

Companies to Prioritize Resolving Issues with Data Synchronization and Interoperability

Blockchain technology continues to cause a ripple effect worldwide. Today, the world has seen what many accept to be the first significant advance towards a new path for startups to the way in the capital. A decade ago, there were a significant lack of awareness about blockchain technology among enterprises. However, as the predominance of digital transformation gets greater and its intricate potential becomes clearer, the technology is growing in significance.

Blockchain’s capacity to encode data and timestamp exchanges has made it an instrumental segment in enlarging different business forms. In recent years, a wide range of enterprises are showing greater interest in blockchain technology, such as BFSI, media and entertainment, and retail & e-commerce sectors. Moreover, growing requirement to ascertain more traceability, transparency, security, and reliability in business activities will continue to fuel demand for blockchain technology. The new trend has also attracted large tech companies such as Oracle, AWS, IBM, and Microsoft, while many have begun testing the waters.

Blockchain is a dispersed database of public ledgers of trades, which includes a ceaselessly growing list of records called blocks. Each block comprises a timestamp which is connected to the past block. The blockchain technology depends on the dispersed computing system with higher byzantine adaptation to non-critical failure. It is significant and inventive, as it remains as the testimony of considerable number of trades on the network.

Transparency in Transaction – Key Growth Promoter

Enabling storage of the chain of all blocks in a system, the blockchain technology helps optimize overall data and a database of all addresses along with their balances directly from the source blocks to the latest blocks. This, in turn, remains the foremost aspect that drives the need for the technology globally. In addition, it creates immutability and transparency in the transactions, which plays an instrumental role in growth of the global blockchain technology market. Furthermore, increasing scope of application in exchanges, payments, digital identities, and documentation is expected to open a wide window of opportunities for market players in the near future.

Growing Need for Storage and Data Synchronization to Restrict Market Growth

Consistently growing size of the database and blockchain are likely to lead to issues of data synchronization and storage, which will represent a potential threat to the market development. Lack of awareness regarding the benefits of blockchain technology over the customary technologies is further expected to constrain the market development over the years to come.

Despite the advent of blockchain a decade ago, the technology is still at a nascent phase. Key players in the blockchain technology market are making great strides in their innovation strategies. An embrace of R&D activities has also been underway to resolve existing issues with the technology. However, a number of operational issues continue to persist; from versatility, speed, and cost to interoperability and centralized/decentralized fight among public and private chains.

Interoperability remains a key challenge for widespread adoption of blockchain technology. As solutions are worked up, directed, and worked at, they stay inaccessible and isolated from other parts of a process – this is particularly valid with private blockchains, for example, IBM’s Hyperledger which builds up a major bit of significant organization’s blockchain solutions. In effect, more than 50% of organizations use Hyperledger, however for the other half, there will be no real way to connect these solutions.

Additionally, the World Trade Organization (WTO) has turned the spotlight on demand for interoperability in the advance of blockchain technology in their recently published paper: ‘Can blockchain revolutionize international trade’

Over the years, a wide range of solutions are emerging in the cryptocurrency market, which provide users with more options to readily and efficiently handle their funds in the crypto businesses. While dApps (decentralized applications) initiated the revolution, recent solutions such as Fairspin are rapidly emerging in the marketspace. This will assist people with understanding their successes and misfortunes while providing necessary help that has been limited with the use of dApps.

In the current scenario, the adoption rate of blockchain technology is relatively low, as knowledge about the advantage of cryptocurrencies and e-payment systems is limited, especially in low- and mid-income countries. In a study, around 70% of respondents refer to an absence of understanding and practically no guidelines as the key factor restricting the adoption of cryptocurrencies. Also, around 60% expressed that cryptocurrencies are making a financial bubble. However, as digital transformation continues to ease operations while reducing the overall costs, organizations that show higher risk-appetite and invest in such disruptive technologies with a clear understanding of the commercial center are likely to be rewarded in the long run.

Alice Mutum

Alice Mutum is an experienced content writing professional, who has contributed to a number of blogs and magazines. At Future Market Insights (FMI), she works closely with research teams to help businesses around the world meet their unique market intelligence needs. She holds an interesting portfolio, with a substantial experience in delivering her content related to technology, food & beverage, automotive, packaging, consumer goods, and wide spectrum of other industry verticals.