Are we on The Cusp of a True Decentralization Revolution in The Economy?
June 30, 2022|
There is hardly anyone in the world who has not, at least once, heard something about the blockchain. Most people probably think that blockchain means bitcoin. True, this is the world's first cryptocurrency and it had the effect of an exploding bomb bringing forth hundreds and thousands of followers and crypto enthusiasts all over the world.
Blockchain systems of the fifth generation are now on the market, their work is much more efficient and devoid of many problems typical for bitcoin, the pioneer in the world of cryptocurrency.
In addition, their functionality and scope of possible applications have greatly expanded. However, the key benefits remained unchanged. Let us take a look at what blockchain is today.
Blockchain technology – Main Features of the System
Decentralization and implementation of smart contracts expanded the scope of the technology's use – nowadays it is applied by financial institutions and insurance companies, in logistics as well as for copyright protection and identity verification. All information about operations is stored by all users of the system, which allows getting the following benefits:
Information will never be lost since the ledger is stored by everyone at once, so even if some machines fail, the data from it will still retain;
Continuity. There is no centralized site for monitoring the operation of the system, so even the failure of a part of the machines will not block the work of the network.
Transparency. Any user can read the ledger, which means that secret operations are impossible;
High performance. Modern systems have the throughput of up to 100,000 or even a million transactions per second;
Due to the absence of a 'big intermediary,' the commissions for money transfer are minimal (usually at the level of +/- 1%)
However, the technology also has its drawbacks. For example, among them:
High power consumption (typical problem for early systems);
Low speed of transactions (also typical problem for early systems);
Problems with scaling (again typical problem for early systems);
Lack of adequate legal framework (problem occurs only in some countries);
Low level of awareness concerning the technology and its capabilities among people (this is only a temporary challenge).
Now, as of 2021 year, almost all objective problems associated with the imperfections of the technology have been eliminated, but we still have to work on the subjective ones. We believe that their elimination is a matter of the next couple of years.
The benefits of blockchain technology in business
What real benefits can this technology bring to a business?
Reliable deals with unreliable partners.
Smart contracts assure that the transaction will take place. Nobody can deceive you. The algorithm is made in such a way that each block is linked to the previous one, and when a new one is added (which is confirmed by every participant), the ledger is automatically updated.
Instant deals. Any money transfer takes place instantly without intermediaries and pauses (this principle could not be implemented in the bitcoin system due to its imperfections. Later platforms don't have this limitation).
Minimum commissions. There are no intermediaries and consequently – no large commissions, which could sometimes reach tens of percent of the transferred funds.
Confidentiality. It is very difficult or very expensive to carry out a hacker attack on the blockchain. This means that the use of blockchain systems guarantees the security of businesses.
As for potential clients of blockchain platforms, these are various financial businesses that look for speed, security, and confidentiality, logistics businesses that require a universal tool to control supplies with minimal paperwork, the real estate sector, which also needs an instrument to control ownership and perform a fast transaction. This is also medicine, where blockchain technology can be used to store information on patients and many other areas of life.
project is a good example of a modern blockchain platform that will suit a wide range of users. It has all the advantages described above, and its set of products goes beyond purely financial solutions: Qchain Place is a decentralized exchange for custom goods and services, Magic Lotto is a decentralized lottery, Qstorage is decentralized file storage, and others.
The functionality of the system will only expand. Thus, you get several products on one platform, and คํานวนยี่กี่ its scope of use is growing.
As of now, solutions based on blockchain technology cannot completely replace the usual centralized mechanisms or fiat money.
But they have several advantages and can be used in different sectors of the economy competing with the existing products and approaches.
We believe that in the upcoming years we will see an unprecedented increase in decentralized platforms and different solutions based on them.