The Bitcoin frenzy caused a genuine revolution in many fields of life and work. Ever since the price of Bitcoin rose to the mind-boggling $20 thousand in December 2017, it seems like everybody started using terms like cryptocurrency or blockchain on a daily basis.
But the fact remains that most people still don’t know much about the new technology. They often replace it with digital money and don’t bother delving deeper into the subject. By definition, the blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
It may sound complicated (because it really is!), but this is something that will drastically change our lives in the next decade. This article will show you the top five industries that cryptocurrencies and blockchain will impact in the 2030s.
The Benefits of Blockchain Technology
The blockchain derives its power from a set of valuable features, and this is exactly what makes the technology so influential. Here are the most important characteristics of the blockchain:
- Decentralization: The blockchain is not regulated by any kind of central authority, which makes it extremely popular among global users.
- Security: Blocks of data are validated by the majority of users, and once stored cannot be changed or deleted.
- Public distributed ledger: Transaction details are public and you can see every component from the time a ledger was created.
- Authentication: Using this technology, it is rather easy to verify the sender’s and the receiver’s authenticity without jeopardizing security.
The Biggest Impacts of Cryptocurrencies
Now that you’ve learned how the blockchain technology works, it is time to see the way it influences traditional industries. We described five most fascinating examples here:
It’s completely natural to presume that cryptocurrencies will immediately impact banking and the global money transfer industry. At the moment, international transactions rely on the so-called SWIFT system that ensures communication between financial institutions. However, it makes the process time-consuming, tedious, and costly.
While the situation with traditional banking remains the same for decades, users perform cryptocurrency transactions smoothly within seconds. According to fintech experts at the Assignment Geek Writing Service, the blockchain eliminates time waste and enormous transaction fees: “The benefits of such technology are so immense that the banks cannot afford to ignore them any longer.”
Some stakeholders, including American Express and Japan Bank Consortium, are already experimenting with cryptocurrencies, but it’s the growing trend that is yet to leave a mark on international money transfer industry.
2. Governments & Elections
A state-controlled public apparatus has always been inert, corruption prone, and alienated from its citizens. Public administration and bureaucracy have been resistant to changes for centuries, but things might take a different turn soon enough.
The blockchain-based system can drastically improve Governments’ efficiency, taking less time to perform bureaucratic procedures and improving security. It can also increase the transparency of public authorities, allowing people to control and monitor Government operations on a daily basis. That way, most countries could reduce corruption.
The blockchain could go a step further, ensuring fair and free elections worldwide. Even US, as the biggest global superpower, suffered from alleged voting frauds and international pressure in 2016 — not to mention other, less powerful countries. This is where the blockchain could step in to take charge.
The technology offers a simple solution to voter registration, ensuring flawless identity verification. Besides that, it will be much easier to count votes and prevent manipulation. As a consequence, elections will become much more transparent. All votes and results will be declared public as part of the blockchain ledger, thus taking democracy to the whole new level.
3. Blockchain Identity For All
If there is one thing that frightens average users online, it must be digital security. A typical user is concerned with fraudulent activities and identity thefts, thus creating the need for better and more secure identity protection.
Fortunately, the blockchain-based identity regulations will solve most of these problems in the following 10 years. The system will handle and monitor various types of personal data:
- Personal information: birth date, marriages, etc.
- Professional certificates: university diplomas, courses, etc.
- Financial arrangements: loans, credits, cards, etc.
- Medical records
- Work history: employment, titles, etc.
How come the blockchain can achieve all that? The reason is simple — it’s a technology that uses a decentralized model of data accumulation. It verifies each entry using the user consensus system, thus building a permanent and unchangeable data ledger. Doing so, the blockchain builds digital identities that no one can modify or misuse in any way.
4. Governments Make Cryptocurrencies
The entire world is Internet-focused, and the trend just keeps getting stronger and more influential. In such circumstances, it is reasonable to expect the decline of traditional money and the further rise of digital currencies. What does it mean exactly?
It means that the governments around the world will be developing their own cryptocurrencies. To date, countries that have issued their own versions of digital money include Ecuador, China, Senegal, Singapore, and Tunisia, while Estonia, Japan, Palestine, Russia, and Sweden are looking to do the same thing.
Of course, none of these countries will entirely replace traditional currencies with their digital counterparts. For the time being, this is the trial period where governments test cryptocurrencies to determine how they respond to and affect traditional monetary systems. Needless to say, this is not the ideal outcome for blockchain enthusiasts.
As we already mentioned, decentralization is one of the basic features of the blockchain technology, but the whole idea kind of falls apart in case state authorities begin introducing their own cryptocurrencies. But there is no way to break the chain of events now, which means state-controlled cryptocurrencies will become a regular thing in the 2030s.
5. Internet of Things
The last prediction on this list is also the most comprehensive and all-encompassing. The blockchain and the Internet of Things (IoT) are the two growing industries that will make the biggest impact on our daily lives once we manage to combine them.
IoT is basically a network of smart machines that can share and exchange information. If we add blockchain to this picture, we get an incredible mixture with a set of substantial advantages:
- Controlling: As data volumes in IoT keep getting bigger, it is becoming increasingly difficult to handle it. The blockchain technology will ensure smoother controlling, improving transparency and preventing data breaches.
- Automation: With blockchain as the means of controlling IoT, it will be easier to automate various procedures (including financial transactions) as actions can only be completed once the system recognizes that all parties involved meet the criteria.
- Data management: Centralized data storage is not the best solution for massive networks such as IoT. With the blockchain’s decentralized system, it will be easier to store and access data whenever needed.
The blockchain and cryptocurrencies are changing the world as we know it today. The new technology will reshape entire industries in the next decade, so you might as well prepare for it on time.
This post showed you the top five industries that cryptocurrencies will impact in the 2030s. Remember this top picks and let me know in comments if you have other interesting suggestions to share with readers.
Top 5 Industries that cryptocurrencies will impact in the 2030s was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.