With each passing year development of blockchain has undergone some innovative changes.
Today blockchain has become a global phenomenon, there is definitely a use case in almost any type of industry. This enabled a high level of improvement in the architecture of blockchain and how it operates. So, let us see in this article a detailed version of some important developments in blockchain.
Developments in blockchain has enabled the creation of digital currencies like Bitcoin and Ethereum. Although these currencies have completely changed the way we handle wealth, there is a big concern about the energy usage of these cryptocurrencies. Right now, there are hundreds of bitcoin mining operations worldwide that are consuming a large amount of energy. Considering long term, this level of energy wastage is not recommended and it can even lead to an increase in global warming.
This has led new crypto companies to take sustainability as a major issue, instead of proof of work mechanism, another mechanism like proof of stake is used to mine new coins. The energy used in the proof of stake mechanism is far less when compared to the proof of work mechanism. There are also many blockchain companies that are moving towards renewable energy sources and carbon off-setting measures. Through these measures, we can expect many eco-friendly blockchain networks in the near future.
In recent years, like blockchain, AI has also transformed many industries to a great extent. Seeing the advantages of using AI, many blockchain companies have stepped up their effort to integrate AI mechanisms into their blockchain network. AI helps in improving the overall efficiency of the blockchain network and it also helps in reducing the transaction time in blockchain. As we know blockchain involves the collection of large amounts of data, AI helps in sorting, identifying and predicting data within the blockchain network.
Integrating AI to developments in blockchain technology has enabled many use cases, for example in health care industry, AI is being used to derive insights by analyzing the patient’s data within the blockchain. Like this there are many industries that use AI to analyze and verify their blockchain data. AI is also used to prevent spam and fraudulent transactions within the blockchain. So, using AI blockchain companies can make their network secure and can safeguard themselves from hackers.
Although many countries are averse to crypto-currencies, they are not hesitant in supporting developments in blockchain. According to CACM report, China, a country that has continuously banned bitcoin and crypto mining is now working on developing its own blockchain architecture. Similar to China many countries like Singapore, Japan, USA are working on developments in the blockchain network.
The main purpose of governments participating in developments in blockchain is to use it for the public use cases. Every government has millions of public user data, blockchain would be a great option to digitize these data.The functioning of government would be much more efficient with the use of blockchain. Also, since the blockchain is impregnable, this makes sure that all government data is secure and stored safely.
There are also many governments that are trying to release their own cryptocurrencies backed by their own central bank. There are also governments that support existing popular cryptocurrencies like bitcoin. In fact, El Salvador became the first country to announce bitcoin as a legal tender for its citizens – sometimes with difficulties.
Not only in the finance sector, developments in blockchain technology is also being used in many other industries like retail and logistics. Blockchain solves various issues when used in the logistics industry. Blockchain helps in reducing the hiccups in the supply chain process, it makes the whole process simple and transparent.
There are now many companies like Walmart and Ford, that integrate blockchain technology into their existing supply chain process. With the help of smart contracts and blockchain companies in logistics, space can perform transportation activities within a short span of time. Implementing blockchain also reduces the number of human resources to do the job and it also increases trust. There is also no need for multiple verification checks and companies also see a huge reduction in clerical errors and also a noticeable reduction in payment disputes.
Logistics companies use blockchain to reduce repetitive processes and also use the network to automate many of their processes. This makes the whole process lean and efficient. Right now, the logistics industry is as a whole is working on creating a standard to integrate blockchain into their network.
Whenever we talk about blockchain, we always think about storing and safeguarding large amounts of data. But there are also companies that are in need of their own blockchain, but their data requirement is far too less to create their own blockchain.
This is where their developments in blockchain system as a service comes into play, there are now many options like Microsoft’s azure blockchain and Amazon’s aws blockchain, which are planning to provide blockchain technology as a service for a small fee. Like shared hosting here also users can share the blockchain and can pay the fee according to their usage.
Unlike decentralized blockchain, here the blockchain is centralized and the blockchain is controlled by a single entity. But, still providing blockchain as a service can bring in many small companies into the foray of blockchain. This makes the blockchain easy to set up and anyone from any part of the world can start their own blockchain within minutes.
From becoming more sustainable to becoming as a service, blockchain technology as we know it today is going to undergo many major changes in the coming years. These changes would drive more and more people into the blockchain ecosystem.
The developments in blockchain network is going to be helpful to many kinds of existing industries and it can also be a starting point for many new types of industries. So, we can safely assume the changes in the blockchain is going to make our life easier and we can expect more future innovations in the tech space.
Image by Gerd Altmann from Pixabay
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