The relevance of the blockchain technology beyond Bitcoin is an area that until now has had relatively little reception in the technological world. However, this does not change the enormous potential that this technology has, and that is why we have decided to immerse ourselves into the subject and understand a little bit better the panorama of this innovative tool.
“The great industrial revolution”, “the internet of value”, “the democratization of power”; These are some of the phrases that many experts and top executives have used to describe the potential and relevance of the blockchain technology in a wide range of industries.
This new technology is here to stay, it is imminent. But why is it so disruptive? Can the blockchain technology really have any relevance beyond Bitcoin? Or is this simply a matter of overestimated speculation?
The emergence of the blockchain technology, in the private and public sphere, will have a huge impact on the business world, because it will eliminate the need to trust a third party when transferring value.
When we think about the relevance of the blockchain technology today, we generally associate it with Bitcoin, other cryptocurrencies, and markets. While cryptocurrencies are revolutionizing the financial ecosystem, the range of possibilities that the blockchain technology has to offer is truly fascinating and it is believed that it can go beyond Bitcoin.
Why this belief? Thanks to the feature of decentralization, the great promise of the blockchain technology. From a business point of view, this means the ability to exchange information of value, or value in itself such as money, legal documents, property certificates, directly between peers. Everything can be exchanged in a secure, immutable manner, and without the need to depend on a third party for the viability and integrity of these transactions.
A bank, for example, invests millions of dollars in advertising in order to generate credibility in its clients, since it is precisely in trust that the key to any business relationship lies. That trust, at the end of the day, is a trust in the word of the people who manage such an institution. Whether they are the leaders of a government, the directors of a central or commercial bank, or a notary.
Being able to carry out value transactions without the need for intermediaries, without having to place trust in an institution, is something completely new in the business world. But the future does not need to depend on trust, and that is where the relevance of the blockchain technology beyond Bitcoin comes into play.
Theoretically, when using the blockchain as a means of transaction, the trust factor is transferred to the algorithms that support the blockchain network, and we would no longer have the need to rely on a person’s word for doing business.
A person’s word can, and usually, change from one day to another. On the other hand, 1 + 1 always equals 2, today, tomorrow and forever. The confidence in the algorithms and the mathematical calculations will generate a total change in the business paradigm, and nowadays we are already beginning to see those changes in a tangible way.
The potential and relevance of the blockchain beyond Bitcoin forces us to evaluate the way in which we interact in the digital world; since it is not a secret that virtually all information exchange on the internet goes through a centralized server. For example, it is easy to think that every message we send via WhatsApp goes directly to the person we want to send it to. However, everything we send, be it a text message, voice, photos or videos, is processed by WhatsApp, where all our personal information is accumulated.
In practice, such companies could manipulate that information at will and commercialize it with marketing companies. A recent example has been the Facebook and Cambridge Analytica scandal. When we realize this immense problem, it becomes easy to understand how the relevance of the blockchain technology beyond Bitcoin can be very useful in business. Needless to say, the Blockchain technology is already positioning itself as a tool that will revolutionize the main industries; such as health, insurance, telecommunications, entertainment, among others.
We invite you to stay tuned to our blog, where we will closely follow the blockchain technology and its development as one of the most disruptive digital tools of recent times.