The rising technology of blockchain and increasing number of opportunities it is creating for different industries, has long been highlighted by TheBlockchainAcademy.com, in an effort to embrace the technology to the fullest and also unveil the challenges and partnerships it has also brought about. In this post, we will be discussing these factors in a more detailed and factual manner.
Blockchain, also called the backbone technology underlying Bitcoin, is one the most intriguing and hottest technologies market has ever had. Since 2013, a rise of 1900 percent has been seen in Google searches for this technology. Just like the emergence of the internet, the blockchain has also the potential to complete disrupt various industries and make the processes and operations more secure, democratic, efficient and transparent. Startup organizations, entrepreneurs, governments, global organizations and investors have all recognized blockchain technology as a revolutionary measure. So, what are the opportunities, challenges and partnerships links are connected with the deployment of blockchain technology? Let’s see these one by one.
· Trustless exchange and disintermediation
With blockchain, two parties can easily make an exchange without the involvement or supervision of a third party, which greatly reduces or even removes counterparty risk.
· Empowered users
Through blockchain, the users have all the control over their transactions and information.
· High quality of data
Blockchain data is consistent, complete, accurate, prompt and widely available.
· Longevity, reliability and durabilityb
Because of the decentralized networks, the blockchain doesn’t need a central point of failure. It can better withstand nasty attacks.
· Integrity in process
Users can fully trust that transactions will be done exactly as per the commanding protocol, eliminating the need for trusted third party.
· Immutability & transparency
Amendments to public blockchain can be viewed publically by all the parties involved, creating transparency. All transactions are immutable, which implies that they cannot be deleted or altered.
· Ecosystem simplification
With all the transactions being included in a single public ledger, it decreases the complications and clutter of various ledgers.
· Higher speed
Interbank transactions potentially consume days for clearing process and final settlement, in particular, outside the working hours. Transactions via blockchain can decrease transaction times to even minutes and can be processes 24/7.
· Low transaction costs
By removing third party intermediaries and also the overhead costs involved in assets exchange, the blockchains hold the potential to reduce transaction costs to a great extent.
· Nascent technology
Resolving the challenges like transaction speed, data limits and the verification process will be critical in making the technology widely applicable.
· Vague regulatory status
Since modern currencies are introduced and regulated by the national governments, bitcoin and blockchain face an obstacle in widespread adoption by various financial institutions if the status of government regulation remains unsettled.
· Huge energy consumption
The miners of bitcoin blockchain network are trying 450 thousand trillion solutions every second in an effort to validate the transactions, using considerable computer power.
· Integration concerns
Blockchain applications give solutions that need great changes to, or complete substitution of, present systems. In order to make the shift, businesses need to strategize it.
· Cultural adoption
Blockchain brings a complete move to a decentralized network needing the buy-in of its operators and buyers.
Blockchain has brought massive cost savings in terms of transaction cost and time, but the high initial capital costs can be a deterrent.
In the banking industry, two startups seem facilitating the Deloitte build what it terms as “digital banks” on the blockchain. While the banks are not developed from the ground up on the blockchain, various parts of the services have been made and are at present being marketed to these banks. One of Deloitte’s latest partners is BlockCypher, based in California. The business which has raised $3.5m venture capital has been providing Deloitte with the central technology, an API layer, for numerous digital banking tools developed on blockchains from bitcoin and Ethereum and custom, private chains as well.
In addition, the New York-based blockchain technology business Digital Asset has announced the development of 3 “non-exclusive business relationships” with Broadridge, Accenture, and PwC. The Blythe Masters-led startup would facilitate these firms exploit the potential of blockchain, the distributed ledger technology underpinning Bitcoin.