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 are 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 direction.
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 entities.
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 on the 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.