Our political, legal, economic systems are defined by structures like transactions, contracts, and their records. They help to build organizational boundaries and protect the assets. They are responsible for authorizing and verifying chronicle events and identities. They also conduct interactions among different organizations, nations, individuals, and communities. They manage social and managerial actions. However, these integral tools and the management formed to handle them are not updated according to the digital transformation of the economy. As the world is becoming more digital, it is necessary to bring a change in the maintenance and regulation of administrative control.
Blockchain can be the solution to this problem. Blockchain is the technology behind cryptocurrencies like bitcoins. It uses distributed ledger to record transactions among two individuals or organizations efficiently in a permanent and verifiable way. Developers can program the ledger to automatically trigger the transactions.
Using blockchain, there will be a platform where contracts are enclosed as digital codes and are saved in databases that are shared as well as transparent. They are also protected from revision, tampering, and deletion. In the world of blockchain, all the tasks, processes, agreements, and payments have a digital signature and record that can be easily validated, identified, shared, and stored. There is no need for any intermediaries like bankers, brokers, or lawyers. Any individual, machine, organization, or algorithm can interact and transact with each other smoothly. This is the strength of blockchain.
Experts believe that blockchain has all the potential to revolutionize the business market and redefine economies and different companies. Even though the potential of blockchain is very high, its hype is a matter of concern. Along with the security issues, there will be many governmental, technological, social, and organizational barriers to overcome. Therefore, it is not possible to jump into blockchain innovation all of a sudden without proper research and plans.
The real transformation of government and business through blockchain is still far away. Blockchain cannot be considered as a turbulent technology that can beat the traditional business models with an inexpensive solution and conquer the current businesses instantly. Blockchain is rather a foundational technology that has the power to build new foundations for the present social and economic systems. Even though the impact of blockchain technology on society will be massive, it will take many decades for the technology to get into our social and economic infrastructure. Blockchain adoption will not be a sudden process. It will be steady and gradual. The institutional and technological changes will gradually gain momentum.
There are still many people who are unaware of blockchain and the advantages it provides. Therefore, it is very important to create proper awareness of blockchain in people. The technology has to evolve a lot so that even ordinary people get to use blockchain technology without any complexities. Research and developments are actively going on in different parts of the world which will bring some good news in the coming years. Blockchain technology has the potential to bring the change the world wanted for a long time. Just that we have to wait for a few more years to see the changes.