Blockchain is, in the most simple terms, a fully automated way to store and share information across a large network of computers. Originally designed to be used with cryptocurrency like Bitcoin, it is a digital ledger of transactions that stores valuable information without the risk of corruption. The information stored in Blockchain is not owned by any one single entity and is available to view by anyone at any time. Transparency is one of the most appealing factors of Blockchain technology.
So, what does this mean for the economy Today? For one, consumers are used to being charged a fee for the convenience of online transactions. Typically, this transaction fee is what keeps online businesses profitable. Blockchain cuts out the middleman who charges a small percentage to use their digital payment apps. This saves consumers money, even at a small level.
The need for subscriptions to websites like Netflix, Spotify, and Hulu may become unnecessary as well. Blockchain’s future may allow for the owners of the media to sell it directly to the consumer via blockchain technology for a fraction of a price. The consumer would have access to only the movies, tv shows, and songs that they want, without having to pay a monthly fee when they don’t use a large portion of the available media anyway.
One of the biggest components to the success of Blockchain technology is its decentralization of information sharing. Currently, most businesses act as a mediary between consumers and the products and services that they desire. Even search engines do the middle work to get the internet users to the information that is deemed to be most valuable. Blockchain technology can open the door for more peer-sharing economics. This allows consumers to interact directly with the source of the information, goods, or services that they seek.
Blockchain technology may also harbor the ability to allow for more automatization and advancements in artificial intelligence (AI) through the Internet of Things (IoT). Machine learning through Blockchain could be used to set up automatic transactions. Machine-to-machine transactions would be kept in the publicly accessible database and shared throughout the network.
The risk for cyber crimes would decrease with the use of Blockchain transactions as anyone attempting to hack into one block of information would need to hack into the entire network associated with the block. It is a crime that is virtually impossible, adding to the security of the technology. Ultimately, this would add to the appeal of turning the modern economy towards more cryptocurrency-focused transactions.
Blockchain technology is still a relatively new concept in terms, but it is one that is growing rapidly in popularity and use. The future of our economy is bound to be affected by its increased applications as a result.