Gone are the days when Blockchain was a new fancy terminology that few people understood. It’s currently one of the rapidly growing currencies, and many people are striving to learn more about and figure out its peak.
Blockchain is likely to grow forever due to its rapid adoption across industries. The reasons behind its adoption are that it has; helped boost trast in transactions, improved privacy and security, enabled tokenization, enhanced data control, and made a positive overall impact across sectors.
It is in vain to wait for Blockchain’s peak since it will most likely be growing forever. In this article, I will discuss why Blockchain is likely to grow forever and briefly look at the expected future of Blockchain in the coming years. Let’s discuss.
5 Reasons Why Blockchain Might Continue Growing Forever
Some of the reasons why Blockchain might grow forever are that:
It Has Helped Boost Trust in Transactions
Trust is often limited or nonexistent in entities involving money or data transactions. Lack of trust has affected many entities and delayed many transactions in the past.
Through cryptocurrency, blockchain has enabled unrelated entities to do their transactions without fear of losing any money or data.
Since Blockchain has helped solve a long-standing problem, it is likely to continue running and growing for the time to come.
It Has Improved Privacy and Security
Improved privacy and security are among the greatest advantages that Blockchain has brought. The data in its storage cannot be altered since there are end-to-end encryptions. Unlike other storage systems that store data in servers, blockchain stores data in a network of computers, making it impossible for unauthorized personnel to access it.
This has helped discourage and significantly reduce fraud and other unauthorized activities.
Requiring permission to access data and anonymizing it also helps boost privacy. With such qualities, many organizations are likely to continue gravitating towards Blockchain.
Improved Individual Data Control
In the current high tech world, data is among the most valued items in an organization. Trusting somebody else to store or control sensitive data for you is easier said than done.
It is easy to control data privacy and plan who sees what through blockchain-enabled smart contracts. Since data importance is only likely to get even greater in the future, blockchain-enabled smart contacts are bound to go mainstream in the years ahead.
It Has Enabled Tokenization
Tokenization means converting the value of a digital or physical asset into a digital token. This digital token is then shared through Blockchain.
Tokenization has helped channels such as carbon emission partners by enabling them to partner under carbon-cap programs. Many organizations are yet to tokenize some of their assets, but this is something that they hope to accomplish soon. For this reason, Blockchain is here to stay.
It Has Made Positive Impacts in Different Sectors
Blockchain is one of the few technologies that have positively impacted all industries simultaneously.
For instance, it has enabled faster and more transparent transactions in the financial sector. Elsewhere, it has enhanced the security of patient records in the healthcare sector and helped create immutable records in government and non-government agencies.
These are merely a few of Blockchain’s advantages in various sectors. Each of these and other unmentioned benefits mean profits for the various industries. Very few stakeholders will be willing to let go of a technological development that helps them make more money.
Looking Ahead: The Future of Blockchain
It is safe to say that Blockchain will still be around several years from now, and it will revolutionize the world in many ways. Since blockchain technology is rapidly expanding, several predictions have been made as the technology continues to grow.
Some of these predictions are:
- Improved government data distribution with more trust, security, and transparency.
- The invention of institute-based cryptocurrency that is more efficient and traceable.
- Better world economy through a unified method of payment and paperwork.
- The invention of blockchains shared by various industries, which will improve transparency.
- Blockchain will have only one source to verify assets and identity, which will help create new ‘self-sovereignty’.
Blockchain is one of the fastest-growing technologies, and this is expected to continue growing even for the years ahead. Projects such as archiving the existing data will help control the size of the chain and create room for more. The size of Blockchain may also grow to help keep up the high demand. So no matter what some sources might tell you, the technology is here to stay.
- Quora: Does the size of the blockchain grow forever?
- Investopedia: Forget Bitcoin: Blockchain is the Future
- Reddit: What happens when the blockchain gets too big?
- Harvard Business Review: The Truth About Blockchain
- Harvard Business Review: A Brief History of Blockchain
- Forbes: How Cryptocurrency Will Transform The Future Business Forever
- Time: The Future of Cryptocurrency: 5 Experts’ Predictions After a ‘Breakthrough’ 2021
- OECD: Regulatory Approaches to the Tokenisation of Assets
- IEEE Xplore: Decentralizing Privacy: Using Blockchain to Protect Personal Data