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Hi-Tech
6 minutes read

The Future of Blockchain (Part 1)

by Jonathan Tarud

The web has come a long way since its early days. As the world transitions towards what some experts call the web 4.0, networks will demand more secure systems. The need for privacy and truthfulness is becoming mandatory as we enter an age of saturated IT systems and information overload.  

Many current technologies are unprepared for the web’s upcoming challenges. However, there seems to be a solution: Blockchain. The world has great expectations of what it can deliver to help solve many upcoming problems, not only in terms of systems and technologies, but also in fields as diverse as public governance and business innovation.

In this post we discuss what the future of Blockchain looks like by considering its most important uses. Some of these will have an important impact on HiTech app development, so it is definitely worth keeping an eye on Blockchain.  

Blockchain Properties

Don’t worry if you can’t grasp entirely what a Blockchain is. Just keep in mind that it works as a peer-to-peer network where members maintain safe protocols in the form of an unalterable “block” of information. These protocols are dispersed throughout various users, making it very secure. This means that you can’t alter the chain unless you have all the pieces of information scattered throughout users’ computers. Performing a Blockchain operation requires complex computational operations. Its main use is to serve as a safe and decentralized method of information transactions. 

The best way to grasp the concept of a Blockchain is to understand the properties that make it a unique technology. These are its most important ones:

  1. It rests on an open ledger where all transactions are recorded. These transactions can be consulted by everyone involved in the Blockchain. 
  2. It is possible to audit the chain of transactions recorded in the Blockchain.
  3. Each of the participants of a Blockchain has a copy of the data. This prevents the information from being centralized in a single system or user.
  4. Each new transaction is added and recorded throughout the chain of blocks.

These properties make Blockchain a secure and transparent technology. Additionally, they make it a great technology that can be implemented for various uses. It is expected that many Blockchain implementations will shape our near future.

Future Blockchain Uses

The scope of Blockchain’s applications goes across a considerable number of fields. Sometimes it seems that there is way too much expectation regarding this technology. What is undeniable is the fact that there are many practical uses where it is possible to revolutionize how things are currently being done.

These are some of the main Blockchain uses we foresee for the near future. 

Smart Contracts

Blockchain technology can be implemented to keep track of contracts. This allows a contract to become unmodifiable, making it very secure, transparent, and conflict-free. Smart Contracts can be activated when a given event occurs, making their implementation automatic. This helps carry out clauses, but it can also backfire if an external event activates an undesired clause; Blockchain events cannot be reversed, so it is important to configure Smart Contracts correctly. The structure of a Smart Contract is essential in order to guarantee its adequate functioning. 

Cryptocurrencies

This is probably Blockchain’s most popular use. Cryptocurrencies are regarded by many as the financial currency of the future thanks to their decentralization and cost-free transactions. They are without a doubt one of the leading products within the FinTech industry. It is yet to be seen how this technology will evolve and how it will be regulated. 

Fraud Detection

Thanks to its transaction records, Blockchain can help trace where the money goes. This is very useful not only for banks but also for governments that want to fight illicit activities or money laundering. By keeping a historical record of transactions through a distributed network, criminals are unable to fool financial systems. 

Governance

Many state-led activities are prone to inefficiencies and fraud. Blockchain has the potential to change this by keeping a decentralized track of state records. Some experts even say that this has the potential to improve democracy by keeping a clear track of votes. Although many expert voices seem to acknowledge that there is a bit too much optimism, they can all agree that change in the current governance models is inevitable

Blockchain as a Service 

As Blockchain technology becomes friendlier, more companies will be eager to implement it. There is a great opportunity for B2B companies who wish to put their blockchain platforms at the service of third parties. This service will surely open up many new operational possibilities to smaller players who can’t afford to have their own blockchain infrastructure. Having a qualified app development partner will be a key success factor when considering Blockchain as a Service.

Blockchain Driven IoT

As IoT devices increase in numbers, so will security and privacy concerns. Companies and users alike want to have secure networks where their information is protected from threats across devices. Blockchain is expected to help sort these problems as it has the potential to secure connections while distributing information across the users of a network. In the future it will be hard for us to think of IoT without relating it to Blockchain.

Final Thoughts

As you can see, Blockchain is one of the HiTech technologies that are changing the technological landscape of the world. It is true that it will still face some challenges in order to go mainstream and be properly implemented, but it is moving pretty fast and the future looks bright. It seems like a safe bet to say that things will work out. As a result, we can expect Blockchain HiTech apps to be developed in the near future.  

At Koombea we have been following its evolution for quite some years now. If you think that your app can benefit from using Blockchain, contact us. We would be more than glad to put our more than 12 years of experience building world-class apps at your service. We are always looking for innovative and creative ways to push technology towards new boundaries. 

Read Part 2 of the future of Blockchain where we discuss its challenges.