Blockchain technology has changed the way we view finance forever. Ever since it was popularized by Bitcoin back in 2017, it’s served as a focal point for the ongoing global financial revolution.
Blockchains connect people with their money like never before. The technology is completely independent of any sort of bank or governmental body, with transactions and balances being completely private thanks to the use of unique keys.
Not only that, but blockchains are unbelievably faster than typically wire transfers for moving money from one account to another. Where it takes 24 hours for the money to move from bank to bank, a blockchain can do it in a matter of minutes.
All of this, combined with individual uses that certain blockchains have that allow users voting rights on the coins that they own, has meant that not only is the tech being used by cryptocurrency, but in other systems, as well.
Blockchain Technology is Just as Important as Cryptocurrency
Blockchain technology is just as important as, if not more so, the currencies that are housed on them.
Take India, for example. The Indian government has recently banned cryptocurrency trading. However, representatives have stated that the government still intends to adapt blockchain technology itself into mainstream financial systems.
Understanding this is just as important for an investor as it is for a developer. Certain coins, such as XRP, are fully marketed on the basis of how fast the blockchain that coin runs on is.
With that being said, let’s talk a little bit about where we can expect blockchain technology to go in the next 10 years and beyond.
Blockchains in the Next Decade
Speaking on the here and now, the Covid-19 pandemic has been instrumental in the rapid evolution and adaptation of blockchain technology in industries that otherwise wouldn’t use it.
The tech has been used by businesses of all kinds in order to enhance business processes in the face of the challenges that the pandemic has presented.
As a result of this, the global blockchain market size is estimated to expand unbelievably fast in the next five years.
According to predictions, the market, which is valued at around $3b now, is expected to reach upwards of $40b by 2025. This results in an effective Compound Annual Growth Rate of 67.3% in this five-year gap.
That’s not the only area of blockchain technology that the pandemic has affected, though.
Covid-19 has forced blockchain projects to take a more grounded and realistic approach as opposed to the idealistic notions that many followed prior to 2020.
Many previous blockchain projects ignored key blockchain features like smart contracts, decentralized consensus, and tokenization. Each of these features is a fundamental part of what makes blockchains so powerful, which is to say, giving users the ability to directly participate in the market.
There has been a steep increase in projects aiming to solve real issues as opposed to simply creating technology. One particular area that has seen a lot of attention is blockchain tech designed to help supply chain issues.
The pandemic has crippled many businesses supply chains around the globe, with several companies still unable to import required goods well into 2021. There are certain blockchain networks that are actively working on addressing this issue, so we can expect more utilization of this kind in the next decade.
Digital Transformation is Going to Be Accelerated
If there’s one thing that the global pandemic has highlighted, it’s the need for businesses to adopt the digital era. Many companies, stuck in methods used before the popularization of technology, were hit hard by Covid, with many not having the resources to survive.
Covid-19 has put increased strain on every area of business management, from upper management to regular day-to-day operations.
However, transferring an entire corporate structure to a digital space is a daunting task. Blockchain technology is capable of making that entire transition infinitely easier for large corporations, which is where you should expect a lot of focus to be going forward.
Businesses are looking at it as a tool to help this transition period, making this arguably the forefront of blockchain development as we move further into the 2020s.
Private Blockchains are Going to Dominate
While blockchains designed to move businesses from physical to digital resources are going to be a major part of development in the coming decade, private and permission-based blockchains are going to continue dominating.
Private blockchains provide businesses with more opportunities and versatility to tackle B2B cases, as well as internally in a corporate setting.
These blockchains deliver more privacy, reliability, performance, and efficiency than public network blockchains, but the most important feature of this technology is easily the level of security that it holds.
Private keys are able to be distributed to select key persons in any given corporation, meaning the people that have access to it are severely limited. Not only does this help to protect business processes, but it keeps classified financial and legal documentation safe in digital form.
How You Can Get Involved with Blockchain Technology
With how fast the blockchain market is estimated to grow in the next five years, you should try to get involved in the industry while you still can. At INX, we’re dedicated to helping you make that happen.
INX is a blockchain aiming to establish a universal trading suite for both cryptocurrency and security tokens. We offer world-class safety to ensure all of your funds are protected and comply with all SEC, FINRA, and EU regulations.
Our WebSocket and trading API access real-time market data. You can also use INX to develop programmed trading bots that are both customized and secure.
We’re bringing financing potential beyond traditional markets by tapping into regulated security tokens. This is a market that isn’t going to stay untapped for long, so sign up with the crypto trading platform by INX now to take advantage of it while you can.
With full regulatory oversight and responsive trading support, INX offers a continuous trading experience that is intuitive to use, whether you’re new to the industry or a long-standing veteran.