The introduction of Bitcoin in 2008, gave the world a new technology – blockchain. The technology offers features that have the potential to transform business processes. The immutability of transaction records – the feature that makes Bitcoin a successful cryptocurrency – has made the industry see how to build more trust within the community. The decentralization feature offers the industry a way to build a more secure and liberal community.
Following the introduction of Bitcoin in 2018, many cryptocurrencies have emerged, like the Litecoin, Ethereum, Tether, and more, paving way for democratized finance. The adoption of cryptocurrencies has helped finance and insurance sector see the benefits of blockchain, which has helped the industry transform banking operations to a large extent.
For instance, In 2016, Reise Bank, a German-based bank, enabled payments between its two clients that reduced the transaction time to 20 seconds. Indeed, blockchain technology has shown promises. Organizations across the industry are taking initiatives to put the technology to use. Here are five predictions for the technology:
1. Blockchain startups will fail
At the beginning of the internet, several start-ups came with quirky business models and failed. Similar anticipations exist for blockchain development start-ups. The energy is high and the pace of innovation is fast. However, Gartner predicts most blockchain startups will fail. The report says only 10% of traditional companies will achieve any radical transformation with blockchain technologies by 2023.
2. National cryptocurrencies will appear
Cryptocurrencies have gained huge reputation worldwide especially because of their reputation as an investment. Many countries are now considering to introduce national cryptocurrencies as an alternative to fiat currency. Venezuela introduced its national cryptocurrency – Petro, backed by the country’s oil and mineral reserves. The country hopes that petro will bypass U.S sanctions and attract more investment. Gartner predicts by 2022, by countries will introduce national cryptocurrencies.
3. Government agencies will integrate blockchain
Government agencies have large citizen databases and huge quantity of other related data. Blockchain will aggregate data across different agencies and make it easier to share among other agencies. Estonia, for instance, has already implemented blockchain technology at the government level. The project is called X road. In addition, the decentralized database allows citizens to keep their data safe. The technology requires 2 –factor authentication before citizens can allow data to be used by an agency.
Gartner predicts, by 2022, more than one billion people will have their data stored on a blockchain, which people may not even aware of.
4. Demand for blockchain experts will increase
Blockchain technology has proven itself as an innovative technology for a plethora of use –cases in the industry and more projects are under research. Inevitably, this will lead organizations to hire blockchain developers who can understand the needs of the organization and develop a blockchain application, etc. So the demand for blockchain developers, architects, and other related roles will be high in the next few years. Consequently, there will be a surge in blockchain certifications, courses, and training programs that cater to the needs of learners who are looking to learn blockchain development.
5. Blockchain will meet IoT
IoT ( internet of things) will expand. According to the McKinsey report, the worldwide number of IoT –connected devices is predicted to increase by 43 billion by 2023, nearly three folds increase from 2018. Blockchain will play an important role in IoT-enabled services. According to IDC (Internationa Data Corporation), blockchain will enable IoT to reach the heights.
For instance, the first blockchain can provide a scalable network for communication among different devices. Second, current security protocols don’t fit the needs of the IoT network. Blockchain has proven its security against cyberattacks.
Overall, blockchain technology will evolve with time. It presents itself as an alternative, more secure, and trustless system. Blockchain technology is still new, yet it finds early adopters. As time progresses, more use –cases of the technology will come forward. So if you’re a blockchain developer, always be ready.