Blockchain was created in 2008 as a platform to create a transparent record-keeping service. It’s immediate use was in the creation of Bitcoin, a famous cryptocurrency. Ever since the proliferation of cryptocurrencies, the technology has gained a new life and is now a compelling platform for businesses of all types to use.
As Blockchain becomes bigger and more widely used it is now creating a new world of technologies that could potentially solve many issues in accounting. The uses of the platform are wide and far-reaching with implications that could reshape the financial industry. The rate of change in technology is staggering and software like blockchain pops up every once in a while.The potentiality of the platform is seemingly endless and companies all around the world are working non-stop to maximize the blockchain platform. There have been a number of innovations thus far, also revolving around cryptocurrencies.
The most compelling Innovation on the Blockchain platform happens to also be one of the first. Bitcoin was introduced shortly after blockchain’s creation and still serves as the primary cryptocurrency in the market. Bitcoin has driven speculators from all around the world to invest in it at huge rates that may or may not be sound.
Despite all this, it has proven that cryptocurrencies not only work but may in fact be the future. The most exciting aspect of Bitcoin is how it handles transactions. A record is created, when a transaction executes, on the buyer side and the seller side. There is also a third side that observes the transaction and works to mine the data from it. This third side is made up of users that can also look at what you’ve done.
The most compelling and attractive part of Bitcoin, and other cryptocurrencies, is that the currency is inherently decentralized. This means that transactions take place peer-to-peer. It is also an open-source platform which leads the way for other cryptocurrencies to be developed. The most incredible part about the whole Bitcoin deal is that it does not require a banking institution or an administrator. This grants the most amount of freedom possible to the individual that uses the platform.
Blockchain can also radically improve the way medical records are kept and accessed. Due to the speed of the software and the efficacy of the platform large swaths of medical records could be accessed instantaneously. Truly, any field that relies heavily on information gathering or record-keeping can be optimized with the Blockchain platform. As a rule, any new technology usually falls under harsh scrutiny. This reigns true especially for the Blockchain platform. Just as all of those skeptical analyses have taken place, however, blockchain’s efficiency has been duly noted by many businesses in many different industries.
One of the most exciting innovations in Blockchain is the arrival of new cryptocurrencies introduced by large banking firms such as JPMorgan Chase and Wells Fargo. These companies offer separate currencies from Bitcoin that have their own record-keeping ledger which can compete with other currencies. This will allow separate institutions to garner traction from different markets or shopping arenas. The record-keeping aspect of the Blockchain platform allows for clear and precise accounting so that each company can carefully plot where their coins have moved.
As the rate of change in technology steadily accelerates to speeds never thought possible on planet Earth, we stand braced for the new era and anticipate the arrival of this new currency. The Blockchain platform can revolutionize both financial services and medical services. The rise of cryptocurrencies will see a new era of how wealth is distributed and managed by individuals rather than centralized banking taking all of the value out of the market. A large goal of blockchain is to prevent another meltdown like the one the world suffered in 2008.
The proliferation of cryptocurrencies and the excitement that they bring are palpable. More and more each day it seems that the blockchain platform has revolutionized not only the specific industries mentioned, but rather, the entire world. Soon enough, cryptocurrencies might not be just a hot trend but instead may be the future of currency and economics, despite some salient fears regarding crypyocurrencies’ future.
by Paul Sciglar, CFA