Blockchain Technology Prediction for 2017
Shen, in 2016, reported in the Finance section of the Fortune that 2017 would be witnessing a massive change in the financial sector by the introduction of a shared financial log managing Cryptocurrency as the major means of financial transfers.
The Cryptocurrency market was predicted to take over the banking systems and all the paying methods used all over the world. It is imperative to understand what Cryptocurrency market and crypto coin are, and how their introduction will shake the very foundations of how finances are handled in the world. Cryptocurrency market is the building block of a virtual system of maintaining financial ledger known as the Blockchain.
According to Blockgeeks (2016), Blockchain is an inventive innovation that will be introducing a digital currency, Bitcoin, and a database that is shared and copied in various places at a time and changes made to it are synced in a matter of time, updating all of its versions wherever they exist.
The blockchain is the revolutionary method that changes the very face of financial transaction processes. It is the technology wherein, every penny sent or received is monitored and logged into a shared financial ledger.
This system, as predicted last year, will be the changing force in the financial sector. Today, banks handle the transactions by updating one database and then sending it over to the second party so that their database could be updated and matched.
There could be a number of glitches in the process and most important of all, this conventional process takes up a lot of time and necessitates the existence of a third party that logs your transactions. The blockchain is supposed to take all this up to the next level and introduce Bitcoin, a digital currency that is encrypted for monitoring all the activities anywhere in the world.
Application of the Blockchain, according to Brown (2017) Forbes will have one major impact, that is, the removal of the intermediary. Processes of financial transactions are considered unworkable without an intermediary handling our transactions and payments. Blockchain system with its crypto coin will make the role of an intermediary obsolete in payments.
The most useful and valuable application of the Blockchain, as pointed out Brown (2017) and Dickson (2017), is in the music industry. Streaming services adopting the Blockchain and payments made to the musicians directly through crypto coin will help bring down the piracy rates and increase the artists’ control over getting paid.
However, a set of regulatory and monitory mechanisms is important to develop and implement for the Blockchain. Related legislations and frameworks for the transactions made in Bitcoin are imperative for the implementation of the process.
This will pave the way for easier adoption of the crypto coin and Blockchain system by people and the industries (Scott, 2017). Naturally, Blockchain will also be applied to transactions across borders, which is why; a regulatory framework dealing with money transfer mechanisms is a necessary if it is to be implemented during the current year.