In 2009, Bitcoin brought in a revolution in digital payment. Financial transactions
became more transparent and secure. Looking at this, the industry is now rife with
predictions that Blockchain, the technology behind bitcoin, will soon be everywhere,
rendering hard cash obsolete. Will it be so?
As far back as our memory goes, we have relied on hard cash for monetary
transactions. But Bitcoin changed that. Investors, businessmen, and common people
are equally inclined toward Bitcoin. The popularity of Bitcoin has reached an
unfathomable level in the past 10 years. Today one Bitcoin is valued at $7856.
Following Bitcoin, several other cryptocurrencies have been invented. Coinbase, a
popular cryptocurrency exchange lists around 2000 cryptocurrencies and newer
cryptocurrencies are coming up …
This year alone 153 million Bitcoin users were found and the Bitcoin market cap is steadily
increasing. Behind the burgeoning growth of Bitcoin is blockchain, which is steadily
pushing the industry towards cashless transactions.
Industry experts have gone to the extent that blockchain will replace banking
industry. Latest bitcoin news and blockchain are at the cusp of changing a lot in the industry.
Looking at various blockchain-related increasing figures,
1. Like digital wallets which have grown to a massive 43 million, as per Statista
2. An increasing number of cryptocurrencies
3. The soaring number of cryptocurrency transactions
Blockchain is definitely toward a path to transform banking. Here is some ways
industry experts believe blockchain can do so.
1. Blockchain’s distributed ledger capability to allow multiple parties to keep the same
copy of data while keeping consensus is a paradigm shift in the industry. The
added cryptography trait allows parties to not temper with data. This makes the
whole system reliable –a feat that will propel banking in a completely new
2. Most activities in banking are paper-reliant and manual. Blockchain’s
autonomous transactions can replace paper checking with data checking.
Allowing autonomous operations that track and record every transaction will
reduce the cost for banks. This could potentially change the way banks operate.
3. 45% of financial intermediaries like stock exchanges and money transfer services
are prone to fraud routinely. With a decentralized system, this could beeliminated
to a large extent and save financial institutions money. Plus, the
technology will get rid of some of the crimes committed due to hacking as access
to data will be denied.
4. As blockchain will eliminate middlemen in cross-border payments, it will get
quicker with blockchain. Therefore, it will be cheaper.
5. Blockchain also opens up opportunities in micro-payments and paves way for
innovation. For instance, wi-fi could charge you for using it on a minute-basis,
while a shopping mall could charge you for entering the premise.
Apart from banking various other industries are investing in blockchain. Waxing
Group, a maker of car parts, is investing $50 million to back up start-ups experimenting in
the blockchain. Companies like IBM, Intel, Microsoft are all experimenting with blockchain to
see how it can bring about a change in the industry.
Airbnb is trying to create user profiles using blockchain into more readable digital
Similarly, blockchain is helpful in keeping medical records temper-free and allowing doctors
and related professionals when needed.
Overall, the industry sees a huge potential in the blockchain. The technology may have just
had a start, but there’s so much potential for it to change the industry. However, across
several countries, technology is facing regulation challenges., which bars the
industry to take innovative steps. Still the industry is focused on making the best of what is
available of blockchain.
Signs clearly indicate that we are headed toward a cashless economy, but who is to tell
what does the future hold. If experts are to be believed, it is just a matter of time before
we see ourselves buying and selling cashless. Until then let’s just keep riding the wave
of blockchain’s popularity.