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Blockchain Technology: Should you Believe the Hype?

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Recently, there has been a lot of hype surrounding Blockchain. The shared database technology behind cryptocurrencies such as Bitcoin, is an open digital ledger that provides a secure way of making transactions between two or more users. This unique technology could reshape the way we conduct business and access information. But, it could also completely reshape our way of living.

What’s all the fuss?

Blockchain technology was developed in 2008 and can trigger transactions according to previously acquired knowledge. It’s important to note that Blockchain isn’t a ‘disruptive’ innovation that can affect a traditional business model with a lower-cost strategy and steal market shares from existing firms. It is in fact a radical innovation that will slowly but surely lead to a profound shift.

Blockchain can be labeled as a major element of the evolution of the online era, with a new set of decentralized apps. In terms of financial transactions, it’s best known for cryptocurrencies such as BitCoin and Ethereum. However, experts claim that it will take around a decade for Blockchain to penetrate all our financial and social frameworks.

Another reason for all the hype is the fact that, with the aid of artificial intelligence tools, it could drastically reduce the cost of transactions between peers by avoiding the use of an intermediary. It can record all exchanges between one or more parties in a permanent way.

Think about how businesses function now. Today, mega data analysis and IT software are core aspects of any business. Blockchain would provide the framework for seamless interaction between departments within a company. It would do this by integrating a huge amount of data with customizable in-app smart learning algorithms. The technology stands out because it is highly secure and ensures contracts are traceable through computational lockers.

What does the future hold?

That being said, the amount of knowledge that could be exchanged within seconds on a peer-to-peer basis could potentially have a huge social impact of unpredictable value. The idea of a sustainable monetary system through blockchains is thought-provoking and has led to great speculation among the technological and economic communities.

Professor Bernard Lietaer, former President of Belgium’s Electronic Payment System, spoke at the Bitcoin Wednesday Forum, advocating a compelling democratic future, in which user issued currencies will replace traditional banking.

Blockchain technology can build upon the online digital transformation of society, enabling people to share knowledge, energy and value through a transparent and secure channel.

However, Blockchain won’t take over without raising any ethical questions. How much can we rely on the programing community? Will artificial intelligence be social-oriented or profit-driven? Will Blockchain help to redistribute wealth and close the rich/poor divide within society? Finally, will it be helpful in achieving sustainable development goals? There is a lot of speculation. But we can be sure that our generation will be responsible for driving humanity to the next curve.

The world is changing fast. Exciting times are yet to come.

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