Top 5 Advantages Of Blockchain That You Should Be Aware Of
Blockchain technology has been a hot topic within tech circles for years, ever since researchers started realizing how much potential it actually has. Since then, blockchain was praised as one of the biggest technological breakthroughs of the modern age. However, it should be noted that most of its use cases still remain purely theoretical, for various reasons.
In some cases, the technology is still too underdeveloped, while in others, its integration is unnecessary. However, there are also multiple areas where blockchain can significantly improve things and disrupt entire industries in the process.
Researchers and developers continue to claim that they have only scratched the surface of what blockchain can do. In the meantime, the technology continues to grow and develop. However, while its current use cases are relatively limited to a few industries which are in dire need of an improvement, it is important to note how exactly can blockchain technology bring these improvements. With that in mind, here are five advantages that blockchain can bring.
1. Less hype, more results
Whenever a new product, technology, or trend hits the market, there is always a bunch of hype following. People tend to get excited about new things, and when they do, they tend to promise more than they can deliver. This happened to blockchain as well, as many enthusiasts started seeing it as a miracle solution to all of the major problems in the world.
The hype died down, especially during 2018, and it will continue to diminish in the following months. However, it is also quite clear that blockchain is not all hype, as many other new inventions tend to be. Instead, as it continues to mature, it is also showing results. This has inspired many businesses to consider adopting it, while many blockchain-based startups started emerging all around the world.
Even the largest companies, such as Amazon, announced that they would develop their own blockchains. This is particularly important as such large players do not trust hype, and Amazon would certainly not make such a move if there was no potential of blockchain tech.
2. Blockchain and IoT
The Internet of Things (IoT) has been advancing rapidly in the last several years, with all kinds of gadgets and devices being produced to make people's everyday lives more practical and interesting. However, with the development of blockchain, many have noticed that these two types of technology complement each other a lot.
IoT devices can connect to the Internet and access blockchain, as a result. Meanwhile, blockchain can record correct and precise information, and make it immutable, which allows information gathered by IoT items to remain in a single, decentralized database. This can improve machine-to-machine communication, logging and monitoring, and even allow for more advanced smart homes.
3. Improving the financial services sector
Cryptocurrencies are, undoubtedly, blockchain's largest and most successful application so far. However, they experienced quite a large blow in 2018, after the longest and harshest crypto winter in the last ten years struck, bringing the prices down by over 80% in most cases.
However, while the crypto trend is currently down, this does not mean that blockchain is going down with it. Quite the opposite, in fact, as even those who are strongly against bitcoin or any other cryptocurrency still show interest in blockchain.
Blockchain is a technological breakthrough, a new system that offers to improve current systems within the financial industry, particularly when it comes to international payments. Furthermore, it can offer additional products for investors and traders to profit from, such as crypto-based futures contracts, and more. It can also improve the financial industry by providing a way for unbanked and underbanked to join the global trade, and enhance its size.
One of the most appreciated advantages that blockchain brings is certainly tokenization, or the ability to create tokens that would represent a digital version of real-world assets. Everything and anything of value can be tokenized, and considering how easy it is to share tokens — it is just as easy to share ownership over these digitized assets.
Anything from gold or real estate to art and fine wines can be tokenized, which will expand the options provided to regular investors, and bring new investment opportunities, most of which were previously only reserved for a privileged minority.
Finally, there are cryptocurrencies themselves. The fact is that they are not in a particularly good place right now, but that does not mean that they should be ignored, or that they will not improve their positions over time.
They will probably never again see a bull run such as the one in late 2017, either. However, the bull run served the purpose to shift the public's attention and point it towards crypto. The surge was a necessary side-effect, which had its own unfortunate consequences. However, the mission was accomplished, and the entire world is still discussing them on a daily basis.
Now that the hype is gone, cryptos still have the attention of investors around the world, and they can continue growing at a more appropriate and healthy pace. This has already started to happen, but the price is not relevant anymore. What matters now is further development and increase in adoption, both of which are advancing at quite a high speed. Because of this, cryptocurrencies are still considered to be blockchain's greatest achievement.