It is now widely accepted among the industrialists that blockchain would be the future of the IT business. Several analysts, like Gartner, have estimated that by 2023, we will have almost $2 trillion worth of goods and service exchange by the support of blockchain. Blockchain technology has a huge potential to disrupt financial markets.
A blockchain is a series of blocks connected via cryptography. Each block has the code or as it is said in technical terms, the hash of the last block, with its time as well as the transaction data. So the best thing about blockchain is the data cannot be modified. It was designed with keeping this in mind. So, whatever information is fed, it becomes unchangeable.
Blockchain will be the future if it overcomes challenges
If someone attempts to change it, the complete value of the block will change and the values after that would be broken completely and it is visible to everyone.
Blockchain technologies can help where multiple conglomerates join for providing a service. In such cases managing contracts and making them will be a clumsy procedure. A lot of individual efforts, documentation, and agreements between the parties is required using the traditional method.
In the case of blockchain, it makes the whole process much easier. The whole chain can be verified by all the parties involved and would make the process much easier.
Companies like Barclays and Wave have tried a hand at it, what they would call as the “world’s first” by using the blockchain technology. According to McKinsey estimates, blockchain can further attract retail banking customers which can save billions of dollars in operating costs.
The major challenges faced by blockchain though is huge losses by frauds, which is in tens of billions. Also, it is a complex procedure to set up the complete chain. As of now, we are also facing scalability issues. Only a few transactions per second are possible now, which also makes the process incompetent for now.
However, as time passes by, new technological advances are made which deals with security and scalability issues. The blockchain possesses a huge potential for the future, but at the moment, it is concerned with the financial markets.