The blockchain: an innovative technology
The blockchain technology is the prominent and innovative technology in the current business scenario, as it stands as an evidence of all the transactions on the network. It is a distributed database of a public ledger of transactions, which is capable of maintaining a continuously growing list of records named as blocks. The blocks are interrelated and secured with the help of cryptography. Each block holds a timestamp which is connected to the previous block.
The key factor, boosting the demand for the blockchain technology globally is the preservation of entire information and a database of all addresses and their balances, right from the origin blocks to the most recent blocks. At the same time, the promotion of the technology-based applications such as payments, exchanges, documentation and digital identities has stimulated the global blockchain technology market. However, the lack of awareness regarding the benefits of the blockchain technology over the traditional technologies may limit the growth of the market.
Digital currency is gaining adoption across various verticals among SMEs and large financial institutes. With the reference of international payments, the transaction fee has been a major issue for cross-border business transactions. The technology that can handle the same issue is a blockchain, since it considerably minimizes the transaction fees incurred, as compared to traditional currency systems. Further, it enables faster and secure transaction, as cryptocurrencies are safer and cannot be intruded.
The blockchain technology can act as a distributed ledger that can keep track of various transactions between two parties systematically and in a permanent way. Once recorded, the information in any given block cannot be updated without the alteration of all subsequent blocks and a collision of the network majority. The blockchain technology can be beneficial for the finance sector including various other sectors and has been a dedicated partner and investor in the development from its initial stages. In addition to that, consumer goods, healthcare, media & telecom, public sector, and transportation are some industries, which can gain profit from the technology.
As per the statistics revealed by Blockchain Luxembourg S.A.R.L, average market price across major bitcoin exchanges is approx. $4165. Moreover, an aggregate number of confirmed Bitcoin transactions is around 249640 every day. According to the Accenture, the investment in the blockchain technology has increased from $30 million in 2014 to $75 million in 2015, and is expected to grow in the near future.
Currency exchange is the most popular function served by blockchain and is continuously evolving. Various driving factors are supporting the growth of blockchain technology and would help it in establishing a strong foothold in the market. BFSI sector is one of the most significant markets to harness the advantages and strengths of blockchain technology. The market is projected to grow significantly and exhibit a healthy growth rate in upcoming years.