Throughout history, global trade has remained the single greatest creator of wealth in the human race, and market friction has been a significant obstacle to wealth creation. However, business processes have witnessed some major innovations, like blockchain and cryptocurrencies, in the past few years, which means that many industries have gradually evolved to overcome many of these frictions. According to experts like Josip Heit, the future will be built on these new technologies.
Institutions and trust have aided in mitigating potential risks associated with business transactions. In the same vein, technological advances have helped businesses become more efficient, although many business transactions remain vulnerable, costly, and grossly inefficient until today. This is where blockchain technology comes in.
Just like the adoption curve of other disruptive technologies that have existed in the past, blockchain, which is the underlying technology for Bitcoin and other cryptocurrencies, has fast risen to gain considerable interest in the past few years.
The proven performance of Bitcoin as a stable asset and reliable store of value has assisted in giving blockchain the needed exposure and ultimately revealed its true potential.
“I consider the advent of blockchain as the biggest innovation in computer technology – the notion of a decentralized database in which trust is established by consensus and clever code instead of through a centralized institution and settlement organization. Just like the internet of information, we are now witnessing the internet of value,” said Josip Heit.
Josip Heit is a renowned Bitcoin evangelist and serial entrepreneur. He is popularly known to be vocal about issues related to cryptocurrencies and the gold sector. Heit, who is currently the Chairman of the Board at GSB Gold Standard Banking Corporation AG, believes that we now live in a “logical” world that relies on the trust brought by technology and algorithms.
While talking about the challenges that the traditional systems have faced over the past years, Heit reiterated that blockchain technology is the knight in shining armor that arrived at a time when the world needed it most.
One of the best innovations associated with the invention of blockchain technology is the advent of a decentralized economy. Bitcoin and other cryptocurrencies have greatly revolutionized the finance sector through the creation of a payment network that is reliable, cost-effective, decentralized, and suitable for cross-border settlements.
While blockchain is most recognized for the role it has played in the rise of digital currencies in the past decade, it’s intriguing to acknowledge its use cases across various industries. Notably, some blockchain proponents like Josip Heit claim that this technology will outpace cryptocurrencies.
Presently, it’s a difficult task to identify any industry that hasn’t felt the disruptive power of blockchain technology.
Currently, the effects of blockchain technology are being felt across the finance sector, healthcare, supply chain, politics, securities, real estate, and legal industries, the government, education, raw material industry, etc. Heit maintains that any industry that failed to innovate in this line will likely be left behind in the 21st-century business terrain.
Blockchain and cryptocurrencies are changing the face of cross-border settlements
Due to hyperinflation associated with government-issued currencies, the average lifespan of a fiat currency is approximately 35 years. The USD, which has lost approximately 96 percent of its value since 1913, will certainly not be an exception.
It is no longer a question of whether crypto is going to replace traditional fiat money sometime in the future, it’s a question of when it will happen. While that possibility looks remote, cryptocurrencies are gradually making their way to mainstream financial systems.
Traditionally, cross-border payments experience delays and high costs. Many financial institutions are already switching focus toward blockchain technology as they seek to provide a much faster and cheaper alternative to traditional cross-border payment methods.
Blockchain smart contract is leading automation processes across businesses
Smart contracts have been recognized as one of the most powerful applications of blockchain technology. These contracts are computer algorithms that deploy clear code to oversee all aspects of an agreement, from facilitation to execution.
They can be entirely self-executing and self-enforcing once the set conditions have been satisfied. This single tool provides a more secure, automated alternative to traditional contract law while being faster and cheaper than traditional methods.
This application allows businesses to automatically verify and execute agreements that function independently in a secure environment. Blockchain technology can act as a middleman for facilitating all kinds of business deals.
Security and identity management
The advent of the Internet brought about online vulnerability and increased cases of identity theft. In this digital age, people hide behind a computer code to steal information from online users. Blockchain has already proven its potential for providing optimum security and privacy to online data.
Blockchain provides a considerable level of security and privacy due to independent verification processes carried out between computers on a blockchain network, allowing for secure verification and protection of data.
Brace for what is to come
It’s an interesting time. Human innovations are rising to solve inherent challenges that have existed since the dawn of human existence. Perhaps even more intriguing is that new ways of utilizing blockchain are emerging each and every day.
Consequently, whether you’re directly involved in blockchain and cryptocurrencies or not, gaining an awareness of blockchain and how it can be used to transform the world we all live in is indispensable.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com