Forget Bitcoin: Blockchain As The Most Promising Technology

Cryptocurrencies of all types came into being owing to the distributed ledger technology known as Blockchain. The Blockchains are decentralized systems for recording and documenting transactions taking place with a particular digital currency. In other words, blockchain is a transaction ledger that maintains identical copies across each member computer within a network.

Even though blockchain became famous for its role in the rise of cryptocurrencies over the past years, there are many other non-cryptocurrency uses for this technology, which develop at a relatively high speed. Furthermore, some blockchain advocates believe that the technology could outpace the very essence of cryptocurrencies, and that the real potential of blockchain is only being discovered with its application in more and more areas.

Predictions on Blockchain Technology by 2030

The number one prediction on Blockchain technology is that by 2030, majority of governments will create or adopt some form of virtual currency. Given a number of limitations national currencies have for both international trade and financial system, crypto is to be adopted by the governments on the global level. This will also resolve limitations, such as scalability, privacy controls, toolset maturity, and interoperability.

Price-stable tokens, governed by monetary policies and backed by collateral, will start to gain traction as they become more reliable as a means of exchange and as a store of value. Governments that have failed to create an effective cryptocurrency will choose “stable coins” as their virtual currency. Some of the companies are already working on the solutions of this problem, namely Tether, BitShares, Maker, Basecoin, Carbon, and others.

The second prediction states that by 2030, a greater part of the world trade will be conducted through the application of the blockchain technology. In its current state, world trade is conducted via a chaotic, fragmented set of business relationships among parties that have low trust in each other. This results in constant errors, frauds, and significant inefficiency.

Among the problems in the world trade to be solved are:

  • Production of counterfeits in Asia
  • Counterfeit auto parts in North America
  • Grey market of electronic equipment and medical devices
  • Grey market of enterprise IT equipment 

The possible solution which can be developed with the help of the Blockchain technology is the anti-disruption system. The system bringing order to chaos by unifying disparate flows of payment, physical goods and information. This will in no way be easy and definitely take some time. However, the ultimate solution will undoubtedly be found in the underlying principles of the Blockchain technology.

The last prediction for the Blockchain technology is that there will be more trillion-dollar tokens than trillion-dollar companies by 2030. This rather bold statement stems from the tendencies of the companies to become the nuclei of the modern economy. As Blockchain technology dramatically reduces the costs of transactions and information flows, it is to supersede firms, especially trillion-dollar ones. Thus, in the future, trillion-dollar firms will be replaced by trillion-dollar tokens .