Technology

Evolution of Bitcoin and Blockchain – How far the technology has come?

No doubt, blockchain has been making strides. The growing number of blockchain-based start-ups are foraying into development and a rising number of enterprises are putting the technology into production. Companies are pouncing on the opportunity to leverage blockchain and improve their services.

Here are some statistics that state the burgeoning impact of blockchain in the industry

  1. Blockchain spending is expected to reach $11.2 billion by 2022, Statista reports
  2. 80% of organizations were involved to some extent in blockchain, according to the PwC report
  3. The value generated by blockchain will reach $3 trillion by 2030, Gartner predicts
  4. By 2039, 10 -20% of global economic infrastructure will be based on blockchain

If anything, the above statistics present a future picture of the blockchain industry and how it will transform various industries. Presently, every industry is exploring the use cases of blockchain because of its intrinsic capabilities – security, immutability, and decentralization – which offer astounding characteristics to services built around it.

However, the soaring popularity of Blockchain is due to the transparency it lends. Transparency is also the reason for the exponential growth of Bitcoin and the incessantly growing gamut of cryptocurrencies — Ether, Ripple, Litecoin, etc. This characteristic of blockchain is taking it across industries. From finance and banking to agriculture, blockchain technology is making its usefulness felt. The technology has tremendous potential to bring out a change imperatively needed in the industry.

Here’s how the cryptocurrency landscape is changing

Bitcoin and blockchain are synonymous, yet very different. Bitcoin is built on the blockchain. The cryptocurrency inherits blockchain’s proof-of-work consensus to keep itself extensively public.

Since the advent of Bitcoin in 2009, cryptocurrencies have come a long way. The following statistics will give you

  1. Ripple, unlike Bitcoin (a completely public blockchain network), is a private blockchain network rose in growth by 36018% in 2017.
  2. The global cryptocurrency market is expected to grow at 11.9% CAGR
  3. Private blockchain networks are growing.
  4. In 2018, cryptocurrencies saw a total investment of $12.86 billion, according to Crunchbase
  5. Of the total investment in cryptocurrencies, 70% went in Bitcoin alone.

Several market research companies have predicted the growing increase in cryptocurrency. The growing number of crypto wallets is a true indication of the increasing influence of cryptocurrency. Statista reports the number of crypto wallets has reached 40 million in 2019.

So far cryptocurrencies have been a business commodity with exorbitant values. However, cryptocurrencies will soon be a digital currency like fiat currency, used for sell. Facebook’s Libra is an attempt toward it.

Facebook announced to launch Libra in 2020. If things go as planned by Facebook, we will soon be using Libra to buy and sell things online. Things are moving pretty fast in the cryptocurrency space.

Blockchain is the genesis of Bitcoin, smart contracts, and many others. Considering how far these have come and have proved beneficial to the industry, blockchain is proving to be a technology that will open more opportunities for innovation. However, certain challenges still hold the technology to use on a large scale. Bitcoin, for instance, requires immense power for mining, which possess a challenge to scale. Government regulatory issues are another challenge for adopting cryptocurrency as a mainstream currency.

Blockchain and cryptocurrencies are proverbial two sides of the same coin. Both are promising, held back by industrial challenges. So far the technologies have shown their innovative streak, but the best is yet to come. Will the launch of Libra pave way for innovation in cryptocurrency and digital payment ecosystems as expected, or will it end the era of cryptocurrency? The course of cryptocurrencies has been largely rough and bumpy, meandering through technological and governance challenges.

Where will the technologies lead? So far the future looks bright.

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