The covid-19 pandemic has halted the world, and everyone was forced to work from home. This became the new normal, leading to a fundamental change in the work culture of several industries with the advancements of digitization. The technology that may be most able to adjust to this cultural shift is Blockchain.
In 2021, cryptocurrencies, stablecoins, NFTs, Metaverse, and Web3 became the most sought-after digital technologies. This pattern dominated the commercial and financial sectors from the beginning of 2022. All of these new-age technological advancements are backed by Blockchain technology and we anticipate that decentralized resources will rule the future. Businesses across the sectors will have to work hard to stay abreast of blockchain-based solutions.
According to a global blockchain market report, Blockchain technology was estimated to be worth USD 4.56 billion in 2021 and is anticipated to grow to be worth USD 117.77 billion by 2028, with a Compound Annual Growth Rate (CAGR) of more than 59.12% during the projected period (2022 - 2028).
Early in the 1980s, blockchain technology made its first mark; the initial purpose of blockchain technology was to simplify the electronic movement of money. But in recent years, the blockchain has come to be understood as a reliable technology with a wide range of applications.
A network of computers maintains the distributed ledger known as the blockchain. Numerous parties can record transactions using this distributed ledger without the requirement for a centralized authority. The blockchain is a transparent ledger that cannot be modified once information is recorded. Once a transaction is recorded on a blockchain, it cannot be changed. The blockchain's use of a trustless approach is one of its fundamental characteristics.
Researchers are constantly attempting to develop advanced procedures employing blockchain technology. Due to its properties that enable Trust, Transparency, Accountability, Auditability, and Immutability, blockchain technology is thought to have good potential in the financial sector. User identity management, transaction security, communication security, critical infrastructure protection, and supply chain management are all made possible with this technology. Blockchain technology can also play a vital role in IoT and Artificial Intelligence.
Blockchain technology significantly impacted the financial sector (DeFi), it is more widely used because of digital currencies, and many different industries have benefited from it. As a result, modern businesses undergo significant changes as they prepare to usher in the new century. Here are some examples of how blockchain technology changes the old business model.
Blockchain primarily serves as an open, transparent ledger for transaction recording. This functionality can give cross-border transactions the much-needed boost they require as they gain popularity. Increased decentralized transactions allow businesses to reach new markets and draw additional clients without any central mediators. Blockchain promotes safe, dependable, and traceable transactions, which has a significant impact on the global economy.
Today, we use passwords and authentication questions to prove our identity online. Blockchain can swiftly replace this technique with a more precise, secure digital identification. This means that instead of memorizing any sensitive personal information that may be guessed or stolen, the user's identities will be based on cryptographic numbers supplied to each user on a blockchain network. Since it makes it challenging for hackers to steal someone's identity, this strategy is far more trustworthy.
Worldwide, crypto investors have taken maximum benefit of Blockchain technology and developed Decentralized Finance as a new way to do transactions with smart contracts. New digital currencies, including Bitcoin, Ethereum, and Dogecoin, have been created based on blockchain technology. At present, there are more than 10,000 cryptocurrencies available, and fifty million users use blockchain wallets.
This will greatly influence international payment systems and accelerate globalization to help many enterprises. In the future, companies will be able to conduct global business without worrying about exchange rates.
Since the technological environment is continually changing, we cannot predict with certitude what will happen in 2022 or in the future. But blockchain is undoubtedly the way of the future. This technology and community will fundamentally alter how we conduct business for decades to come.