A Second Thought on the Blockchain Technology

The general consensus is that the technology is great but there is a scenario where the Blockchain falls out of use because of people who simply use it the wrong way.

by Pavel Velichkov
01 February • 3 min
In Tech

Cryptocurrencies and Bitcoin, in particular, have brought a lot of attention to the underlying technology they are built on – the blockchain. Some people became more interested in the Blockchain technology than in cryptocurrencies because they saw a lot of potential in it, both in investment and in development.

The blockchain is basically a ledger of transactions that is unalterable, permanent and completely transparent to the public. In fact, the only situation that allows the blockchain to be edited would be if 51% of the users agree to make a change – that is virtually impossible.

 

What is the Applicability of Blockchain?

Even though the blockchain is, in fact, a young technology, people have found many different applications for it outside of cryptocurrencies. There are examples of blockchain use in the energy, manufacturing and banking sectors, all with different levels of success.

Realizing the potential of the blockchain and seeing that this could mean big business in the future has driven other companies to experiment with it. Airlines, for example, are reshaping frequent flyer programs into blockchain-enabled virtual wallets, shipping companies are also looking for ways to increase transparency and to improve their tracking systems using blockchain.

Even though it might seem like it at first, the blockchain is actually not a general panacea, suitable for every business. It is a long-term investment, to begin with, so companies looking to restructure their business models to blockchain-oriented companies should keep that in mind. A recent report by Gartner shows that merely 10% of the companies using blockchain today will have transformed by 2022.

 

Is the Blockchain as Great an Invention as We Think?

Experts have interesting answers to this question. While some believe that Bitcoin, for example, is truly overhyped, they are certain that the platform it was built on – is not. The decentralization aspect of blockchain is one of the things that allows its varied use.

So far, most of the noise around the blockchain has been all about the incredible amounts of money inflow pouring in. In the background, though, there is the story of the talented people who are just starting to educate themselves on the topic and apply the technology in social aspects such as healthcare.

Let’s not forget that cryptocurrencies, the thing everyone is losing their minds over, are only the first thing built on the blockchain technology. This alone should be an eye-opener as to the potential hidden within the blockchain.

While it does have the power to change transparency in governmental and NGO structures, the blockchain’s potential is still being explored and this can be dangerous. Yes, of course, there are those who are happy not to look for applications beyond cryptocurrencies, but there are also others who pioneer new applications.

Some of the so-called pioneers though haven’t found the right approach towards the technology, experts say. Due to the misunderstanding of the blockchain, people try to apply it to businesses and projects that do not need a Blockchain approach. This could lead to a lot of destroyed dreams, businesses and disillusionment. The general consensus is that the technology is great but there is a scenario where the blockchain falls out of use because of people who simply use it the wrong way.