The mainstream businesses are moving towards decentralization with the advent of state-of-the-art Blockchain technology. It all started with the emergence of digital currency, Bitcoin, in 2009. The pseudonym, Satoshi Nakamoto, envisioned creating the first peer-to-peer electronic cash. However, it was hard to realize the potential of the underlying technology at that time. People did not think it will have not only been transforming the FinTech industry but many others too, including healthcare, automotive, and more. Blockchain has revolutionized essential business operations and processes, such as digital remittances. It has paved the way for an entirely new development space with hundreds of business solutions emerging daily.
What is Blockchain Technology
Blockchain is a digital distributed cryptographic ledger comprising a series of information blocks linked with each other. They form an immutable shared database of information across a network of nodes instead of storing it centrally. Each block comes with a specified size limit and can record a small patch of information. It happens in chronological order, thus, creating an immutable blockchain. Blockchain creates a permanent and tamper-proof record of the stored data. The data, once stored on a private/public blockchain database, becomes unalterable for any entity. It makes anyone incapable of making any change to information at any point in time without consensus. It remains there permanently as a digital record.
Indeed, blockchain technology came into existence to power cryptocurrencies like Bitcoin and Ethereum. However, it has become quite versatile because of its range of applications and use-cases across industries. Businesses are gradually but firmly exploring the real potential of this emerging technology. Reports suggest that by the year 2025, companies may not embrace the technology across all operations, but it will gain significant traction in essential processes in some way or another.
Applications that may Render Blockchain Mainstream by 2025
Peer-to-Peer Payments
A P2P payment model development is one of the earliest applications of blockchain technology. Businesses are increasingly and extensively using this model for making online P2P transactions secure and efficient. Cryptocurrencies have emerged as an effective payment alternative to centralized means. Companies, from established to SMEs, are using them for fund transfers and payments. The main benefit of using P2P transactions is that they do not require a third party like banks for approval and validation. Generally, banks charge a high transaction fee for a single transaction. It increases as the number of transactions increases. This transaction cost further becomes exorbitant in the case of making an international transaction. It can prove economically disastrous for businesses that deal with hefty international transactions frequently.
In that case, blockchain technology can prove to be a viable means for executing online payments. It imposes from no to minimal transaction fee, depending on the cryptocurrency, for p2p transfers.
Smart Contracts
Ever heard about a Peer-to-Peer contract that executes itself based on the specified parameters? Blockchain-based Smart Contracts have made it possible. A smart contractor self-executing will is a computer protocol that automates verification and enforces negotiation between two parties based on the defined contractual clauses.
Smart Contract is an invaluable offering of blockchain technology and it has the potential to streamline business operations by facilitating faster deals and agreements. It seems way more useful than the modern-day contracts that are generally on a set of pages containing the terms of the agreement. Smart Contracts are written on Blockchain and hence they are completely inalterable and nothing can be changed once they are triggered.
Recruitment and Hiring
The recruitment process involves days of sifting through the CVs and resumes and selecting the most eligible applicants for a job profile. It can be a tiring process that requires combined efforts from the recruitment staff as well as the HR teams.
The good news is, Blockchain can make it pretty simple for employers to select the best applicants for a job profile. Imagine a scenario where each applicant has a digital identity and a profile on the blockchain. The profile would contain authentic information about his/her work experience, previous employers, and feedback from the employers accumulated over a course of time. All this information can be analyzed in seconds using a computer program to filter out the ideal applicants for a job. This would make the recruitment process much more simple and agile.
These are some factors that may contribute to the mainstream adoption of Blockchain technology soon. Blockchain applications can go mainstream by 2025 across business processes and operations. The odds are in emerging technology's favor.