Blockchain has been labeled as one of the most promising technological innovations in recent times. However, like any disruption in the current landscape, it is difficult to predict its scope and impact accurately. To some experts in the financial market, it is increasingly obvious that this technology is on its way to being one of the most overvalued of recent times.
However, the use of blockchain across multiple industries and businesses has revolutionized the way users interact with investments, sports betting, and picking college football picks, redefining the concept of what a unified and global cryptocurrency system is.
Regardless of whether the use of cryptocurrency becomes massive or whether it falls into oblivion, the truth is that the decentralized system for sharing information based on blocks of encrypted data is revealing innovative applications every day.
This technology, which is changing the tendencies of millennials and centennials to invest, promises to eliminate intermediaries in the relationships between network users and reinforce their power, taking it away from the entities and institutions that have traditionally exercised it.
The intrinsic features of blockchain technology seem to portend great transformations in the operation of numerous operations carried out on the networks. For example, a distributed database to which each user has full access and in which no party controls the data entered, or the information exchanged.
To this, we must add communication between equals (P2P). The members of the network communicate directly with each other without going through a central node or transparency with anonymity. And it is that each transaction is visible to anyone with access to the system. Every user and node on a blockchain has a unique 30-character alphanumeric address.
Lastly, irreversibility. Once a transaction enters the database and the accounts are updated, the records can no longer be altered because they are “chained” to the ones that preceded them.
Even though there are undoubtedly technological advances and interesting applications within the realm of blockchain, the revolution that has been announced for several years has not yet occurred. Ethereum languages for smart contracts have the potential to become universal in the future, as was the case with the Windows operating system for computers or Android for smartphones.
Of course, for the moment, blockchain has not managed to replace intermediaries in financial transactions, as banks, including central banks, continue to be in control. Nor has blockchain been able to turn entire economic sectors upside down, as was predicted a few years ago. To some experts, this is enough to believe that none of these events will occur anytime soon.
Today, the global financial industry successfully performs millions of transactions daily using algorithmic trading as a fast and efficient verification modality. While the Bitcoin blockchain can process between four and seven transactions per second due to the necessary cryptographic verification of all transactions, Visa, for example, processes about 24,000.
However, there have been many financial institutions that have incorporated blockchain technology into parts of their business to reduce costs and increase efficiency in the technological field.
The key lies in understanding that this technological innovation is linked to a substantial paradigm shift in how we share, exchange, store, and verify information and money. This is what most experts in favor of blockchain and the development of a strong cryptocurrency structure claim.
This transformation opens the door to an enormous change in the far-reaching economic and social panorama. This would translate into eliminating the figure of the intermediary or trusted third party. It is this unique characteristic, decentralization, which provides higher levels of trust, monitoring, and security in digital services than traditional ones.
However, this doesn’t mean that it is exempt from problems. There’s no doubt that it has certain limitations and is still trying to earn the trust and support of consumers. However, it will expand over time, and even the term blockchain is heard in an increasing number of places regularly.