What’s the point of Blockchain?
With the Global Blockchain Technology Market size expected to reach $72 billion by 2026, it is no doubt blockchain will continue consuming the world in its whirlpool. This then leads to the natural question- what is the point of blockchain and why has it become such an overnight sensation?
According to Wired, the main hype around blockchain stems from the fact that it “offer(s) an immutable ledger of data without relying on a central authority”. Hence, blockchain allows for decentralization, which ensures security and more control in the hands of everyone, rather than a singular authority.
One of the most widespread uses of Blockchain nowadays is in Cryptocurrencies like Bitcoin, Ethereum, etc. Based on principles of blockchain and crypto, these currencies allow users to make secure payments without having the need to go to banks or any other third parties, making them more hassle-free and safer.
Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction (1). Since there is minimal input of humans into the system and has a large interconnected system, it makes IoTs more susceptible to attacks from hackers. Companies like Filament and HYPR are incorporating the concepts of decentralization and blockchain to make IoTs protected from hackers.
Identity theft in today’s age is a prevalent crime and according to identity theft expert LifeLock, more than 16 million Americans complained of identity fraud and theft in 2017 alone, with an identity being stolen every two seconds. However, if sensitive information like identity cards, birth certificates are kept on decentralized blockchain ledgers, crime can be reduced significantly. Companies like CIVIC, Evernym are working to ensure the safety of identities through the use of Blockchain.
Another booming application in the domain of Blockchain is Non-Fungible Tokens (NFTs). They are basically digital items like art, music, gifs, etc, that are sold on the principle of blockchain which ensures sole ownership and they can’t be replaced. This is not only a treat for collectors, but it also helps a lot of artists, musicians through their work getting recognized. They can earn a handsome sum if marketed correctly, for example an artwork by Beeple, “The first 5000 days” sold for $69 million!
Blockchain is taking over the world and a lot of industries and now you know, for good reason. The technology has a lot of perks and with more research it can enhance security to another level. This industry is expanding rapidly and in 2019, approximately $2.9 billion were invested in it. Keep an eye out for it, soon you will see it incorporated into daily lives on a mass level!
