Blockchain technology can change the world, and not only through cryptocurrencies Blockchain offers great efficiency, and this is the main reason why its use will become more and more prevalent in the next decade. In the last three or four years, blockchain adoption has expanded tremendously, decentralized finance (defi) development services company with each industry exploring different use cases for the technology . There are multiple aspects of blockchain—from business to technical and more—but with the way the industry is growing, it's really hard to understand.
It is best to divide the topic of blockchain into two broad categories to understand the development of the ecosystem and the main benefits and innovations it provides . One of them is cryptographic money, where we cover areas like monetary administrations, protection and capital business sectors, including tasks through confidential value and funding. Then there is the business world, which deals with how to apply blockchain as a technology in different sectors.
Last year we published our "Time for Trust" report, which covers the top five use cases for blockchain technology : Provenance, Payments and Financial Instruments, Identity, Contracts and Dispute Resolution, and Customer Engagement . These use cases will have a significant impact on a country's GDP and the global economy .
The number one use case is traceability, or provenance . In the future, Blockchainx with the decentralized technological revolution and evolution, it will be necessary to understand and offer full transparency to consumers. For example, if you buy drugs for cancer, which are very expensive, you will need to know that they are authentic. And this is where we have a technological solution that blockchain technology provides. It is the same thing that happens with the purchase of expensive haute couture clothes , cars, etc. Big-paying consumers need to be sure they are buying authentic goods, so such supply chains could be a critical use case for blockchain, especially in the next decade..
The second use case is related to peer-to-peer trading. But how are P2P trading and the supply chain related? It has to do with the logistics market. Let's say, for example, that a company wants to ship a container from Amsterdam to Australia. You have to go to a transport company, which will transfer a container to a ship, among other processes. There are also transportation providers on the other side of the road, and they do the same thing. They unload the container and take care of sending it to the importer. But what if there was a market or a platform where you could see how many ships are going to travel in the next day or hour? Yif there is a space available, you could directly place the container you want to send yourself, which means that you do not need an intermediary . This is what the future looks like with this type of decentralized technology.
And then the third—and the last aspect—revolves around document sharing . How can all bills of lading, letters of credit and certificates be stored digitally? For now, it can be done with a cloud solution, but it's easy to hack a PDF. And there have been cases where carriers have faced millions and even billions of dollars of fraud, forcing them to stick with paper documents because they know paper is accurate proof, and they have something tangible in their hands. But with blockchain, you can add a timestamp and fully track how a document is being generated, where it came from, who has opened it, who has edited it, and who has altered it .
A mixed sentiment on the blockchain
But now the question is: What is the current situation? There is a mixed feeling on this topic, firstly because blockchain technology itself is super complex , it is not like the internet of things. With IoT, it's, "Well, this is my device, and this is now a digital version of it. This is what IoT does." But what does the blockchain do? It's the technology behind the scenes . That is why people find it difficult to understand it: to understand that it is something like the Internet protocol. You don't really go into detail about what HTTP does and how it works, you just open the web page and do what you want. This is what we're talking about. This is really the issue.
What is coming in the future, and what is coming for next year?
The first and most important issue is interoperability . The landscape in the last five years has literally overflowed. If you look at how the internet has evolved, we had VPNs in the 90s, then the internet flourished and became popular. Today, some companies still use VPNs, while others use the Internet, and you really don't see the difference. And this is how we see private and public blockchains working together. Therefore, there is no debate: Public blockchains will prevail, and private blockchains will prevail . And this issue of interoperability is really in the market, but there is a huge amount of work to be done. This is what companies and solutions are going to come up with in the next five years .
The second topic is about how we integrate with other technologies , since blockchain is just a back-end technology, or kind of a behind-the-scenes technology. That is why it is very important. At the same time, it is super strategic because it involves multiple companies, but it is still a backbone technology or main segment. And it does not mean that just because you have a blockchain everything will be solved in your company. So I think that companies have to understand how to integrate it as a form of digital transformation . What we need to do is examine how these technologies will integrate with the existing environment .