The concept and implementation of blockchain technology was hyped in the second decade of the 21st century. The hype has not been without basis. Technology giants such as IBM and Microsoft have significantly invested in researching blockchain technology. The finding of these research is that blockchain holds a great potential for the world in how information is recorded and transmitted. The technology offers high-speed performance, transparency, wide reach and sophisticated security.
Reasons why individuals and institutions should use blockchain technology
- The technology world is changing fast. There is an increased interest and adoption of the use of cryptography and decentralized means of collecting data. Blockchain technology integrates both cryptography and decentralized networks.
- Cybercrime is on the rise and blockchain technology has a potential to decrease cyber risks by decentralizing network control and establishing sophisticated authentication processes.
- Electronic ledger systems are the next optimal option for keeping records. Record keeping has come along way from recording on scrolls and papyrus, to paper ledgers and now digitized ledgers. Blockchain technology raises the bar in ledger systems by incorporating a synchronized distribution of the information and allowing all members of the system to add new transaction information at any time.
- Blockchain technology can be adapted for application in different industries to meet the need specific to that industry. Institutions can customize their blockchain systems to meet their ideals on permission verse permissionless systems and other features of a blockchain.
- Blockchain technology holds the potential for bringing transparency on trading, logistics, information sharing and decision making.
- Blockchain technology enables faster speed of transacting. Using this new technology, a transaction can be processed within milliseconds.
- Cryptocurrencies are gaining popularity and may become a key part of the international economy in the future. As more governments and international bodies embrace the use of cryptocurrencies, blockchain technology will be a key driver of the economy in the future by managing how transactions are carried out and enabling implementation of a homogenous currency.
- Blockchain technology enables boundless sharing of information across the globe. It is not restricted to differences in time zones or geographical boundaries. It is creating an avenue for the next level globalization.
- Up to 90 % of banks in Europe and USA are exploring the implementation of blockchain technology in their institutions. Competition may overtake Those who will be left out because of using obsolete technology.
- Blockchain technology has powered the cryptocurrency industry form $0 to a 200-billion-dollar industry in less than a decade. The technology holds great potential for scaling up profits in both small and large businesses.
- Centralized ledgers are expensive to maintain and exposes the database to problems such as counterfeiting and manipulation. Blockchain-based ledgers are cheaper to maintain and offer optimal data security.