Many financial analysts and experts are making a strong adoption case for cryptocurrency and blockchain technology. They are presenting the argument that the adoption of digital currency could prevent another global meltdown and save the world from the financial crisis. That said, there are voices also which are still skeptical about the potential of cryptocurrencies and find digital assets more of hype than reality. No matter which side you are, there is hardly any doubt that cryptocurrency and blockchain technology is capable of changing the current market scenario. We list out some of the areas where the application of blockchain and cryptocurrency are making the difference and possibly leading to disrupting the current practices in the future.
It is a segment where the application of blockchain will completely change the way data is handled and secured today. Blockchain application will lead to encryption of data that will have an influential effect on how the data will be stored and processed in the future. The great thing about the encryption is its high security which makes hacking of data virtually impossible. In other words, the system becomes immune to any kind of cyber theft or hacking incidents.
Banking and Finance Industry
The Industry has already started feeling waves of disruption arising from the adoption of cryptocurrency and blockchain technology. Many studies and reports suggest that banking executives are worried about the disruptive power of these new technologies with many of them feeling they need to make drastic changes in their payment and transaction systems to remain relevant in the future. Some banks and financial institutions have already adopted the blockchain solutions, resulting in a considerable saving in their transaction cost and time. This, in turn, has helped these institutions to satisfy their customers more effectively. Financial experts believe that the banking and finance industry is at the cusp of change and the revolution will be led by cryptocurrency and blockchain.
Adoption of blockchain is also seen as a measure to end corruption in the various bureaucratic and government organizations. As blockchain is an open-source ledger, any transaction happening between the nodes will be visible to all participants. This essentially means every penny involved in transactions will be accounted for, thereby enhancing the transparency of the system. All the public welfare and promotional schemes can be verified by the adoption of the blockchain, and that will control the corruption and other ill-practices in the system.
Internet of things (IoT) and Communication
The field of computer hardware and software is already undergoing a drastic change. The innovations in technology will complement the adoption of blockchain and cryptocurrency. All of these innovations, when applied together in a particular context, can change the industry dynamics. We are already witnessing a sea change in industries such as supply chain, logistics, agribusiness, energy, and power generation, and financial technology and the pace is going to only aggravate in the future. Companies in these industries are adopting new ways of conducting the business – with cryptocurrency and blockchain being the one – and reaping the benefits in terms of better efficiency, accurate tracking, and reduced layers of intermediaries. Communication segment is also expected to get an extra boost from the adoption of the blockchain. In the future, modes of communication will become faster, reliable, and safer owing to innovations that are required to adapt to the emerging scenario.
Investment Scenario and Regulatory Frameworks
It is also worth noting that more and more people are adopting cryptocurrencies for the investment purpose and like other investments, the crypto investment too has their share of risk factors. According to recent statistics, 18% of students in the United States of America own the cryptocurrency, and many more are willing to adopt it. This has generated the demand for crypto education with many people earning a handsome amount of money by educating people about investing in cryptocurrency. The demand for professionals in the blockchain is also very high, and studies suggest that there exists a wide gap between required talent and existing talent.
To widen the adoption of cryptocurrency and blockchain, all experts agree that there should be a proper regulatory and legal framework in place. Many governments have worked out a legal framework for crypto and blockchain, and the step is doing wonders for the adoption of technologies in their countries. Also, some governments which are initially skeptical about the prospects of digital currencies are now slowly and steadily opening up to these concepts. Definitely, it will take some time before the full adoption happens though we already have a positive start on the horizon.