Blockchain is a shared, immutable ledger that executes the process of recording transactions and tracking assets in a business network. Blockchain Technology eliminates the need for a centralized management entity such as a bank. However, it is an emerging technology whose future is uncertain. So, it becomes challenging to discuss the future of such technology. Regardless, we can anticipate some of the aspects and by the time you finish reading the blog, you shall have a glimpse of the Future of blockchain technology.


What is blockchain technology?

As mentioned earlier, Blockchain technology is a distributed ledger technology that facilitates a decentralized system. The fact that the ledger is distributed across each section of the network helps to boost the security of the blockchain.


Why does a decentralized system make it more secure?

The blocks and the contents within them are protected by powerful cryptography, which ensures that prior transactions within the network cannot be forged or destroyed. In this manner, blockchain technology lets a digital currency maintain a trusted transaction network without depending on a central authority. This is the significant reason that digital currencies are comprehended as decentralized.


You have a basic idea of the concept of Blockchain technology. Now, let’s see what the future of blockchain technology looks like.


Future of Blockchain Technology

The idea of decentralization is going to thrive in the forthcoming future. However, no one can predict the exact time frame in which it may be generalized or say acknowledged globally. So, here are some of the possible use cases or rather say predictions or domains that will play a crucial role in the Future of Blockchain Technology.


✦ Cryptocurrencies 


Cryptocurrencies are basically digital currencies which are leveraging blockchain technology. They offer secure transactions and operate without any government interference. The trend of the cryptos was at its peak during the pandemic and despite the current downtrend and global scrutiny, there is optimism amongst financial institutions and investors that it will thrive in the long run. The main reason for such a belief is Blockchain technology.


✦ Data Distribution by the government 


As blockchain technology is only going to get better with time Government also realizes the potential use cases and benefits it could offer. In fact, many governments have started implementing Distributed Ledger Technology. This system replaces the old-school methods for data transfer which involve physical documents or even an outdated system. The main benefit of the implementation is the data encryption and security that comes with such systems.


✦ Transparency between businesses 


In the future, blockchain system implementation will help maintain a single system among many industries. This means sharing information there will be more secure and easy. This will also make it more accessible publicly.


✦ Smart Contracts 


Smart Contracts are executed when every condition is met. These contracts are decentralized and are not interfered with by any other entity. As there’s no third party entangled, and because encrypted records of transactions are transferred across participants, there’s no necessity to question whether data has been altered for private benefit.


Blockchain transaction records are encrypted, which makes them extremely difficult to hack. Moreover, because each record is linked to the prior and subsequent records on a distributed ledger, hackers would have to change the entire chain to modify a single record. Hence, smart contracts on the blockchain will be useful in safeguarding the efficacy of medications, making international trade more rapid and efficient, increasing trust in retailer-supplier relationships, and so on.


✦ DeFi


The majority of industry leaders have been open-minded to the possibilities of public blockchains in enterprise contexts concerning blockchain’s future. Regardless, the introduction of DeFi has the prospect of diverting attention away from public blockchains toward permissioned blockchains.


The total value of cryptocurrencies funded in smart contracts in the early part of 2020 was high i.e. in billions.  Although this figure does not indicate the amount invested by people in DeFi stakes, it shows users’ curiosity about the bets. Thus, one can clearly catch a glimpse of the continuously and steadily accelerating curiosity in DeFi.


In the future, the number of transactions beyond traditional mechanisms and mediums would rise substantially. So, blockchain transactions can approach a certain inflection point where businesses, regulators, and political leaders would concentrate on DeFi.


✦ Finance 


Because of the global inflation and rising costs of money transfers between financial intermediates. Many financial experts believe that developing countries will adopt cryptocurrencies soon.


Also, the low profits and fixing edges have restrained banks to adjust and progressively meet their client’s requirements in a growing digital world. The adoption of Fintech and blockchain creation, empowers them to smooth out their tasks and update their activities. This may instigate a firm development in contactless exchanges and redesigned financial benefits. The banking and financial sector is mandated to show intense development in blockchain adoption in the future. As a result, this area will hold the biggest market size in the worldwide forum for blockchain technology in the coming years.


In banking, JP Morgan currently utilizes blockchain for automated margin payments. Northern Trust is leveraging the technology to test the trading of fractional bonds for retail investors. Santander has redeemed a $20 million-worth bond given on the blockchain. Most significant of all, HSBC has achieved 2 letters of credit transactions on a blockchain between companies in the Gulf. This shows how the banking sector is exploring the prospect of blockchain technology. 

You may find this useful: A Comprehensive Guide on FinTech Business Models

✦ Medical


Blockchain is useful in the medical sector. It can be helpful in building apps to manage patient data, control drug supply, automate medical examination and treatment transactions, and much more. Specifically, situations about the production and distribution of bogus vaccines have been fixed. We can see this happen as blockchain will be an adequate tool to confirm the authenticity of vaccine shipments and follow vaccine distribution. IBM is one of the pioneers when it comes to leveraging blockchain to design a vaccine delivery system.


In addition, using blockchain in the medical field can help in the protection of healthcare data, personal health record data management, point-of-care genomics management, and electronic health records data management.


✦ Combination of technologies 


The future of Blockchain is promising when we think about integration with other technologies.


Combining technologies with blockchain will enable things that haven’t been accomplished before. More reliable data from the blockchain will better notify and strengthen underlying algorithms. Blockchain will assist in keeping that data secure and audit each and every step in the decision-making process, allowing sharper insights driven by data that network participants trust.


✦ IoT


Many IoT firms are considering using this emerging technology. The premise for this is that blockchain technology can deliver a safe and scalable framework for interaction between IoT devices. As modern security protocols are already appearing to be exposed when executed with IoT devices, blockchain has supported its high resistance to cyber-attacks.


The blockchain will let smart devices make automated micro-transactions. Because of its distributed nature, it will execute transactions much faster and cheaper. To allow the transferring of money or data, IoT devices will use smart contracts which will be known as the agreement between the 2 parties.


These were some of the prospects that seem promising when we think about the future of Blockchain. However, there are a few domains that are new but make a solid case for a sustainable future of Blockchain Technology. Let’s see a few of these domains,


✦ Metaverse


Metaverse is a new trend, especially in the crypto world. The idea of a Metaverse/Virtual world existing without blockchain is almost impossible.  The concept of digital experience in the metaverse blends many emerging technologies such as VR, AR, and blockchain.


✦ NFTs


Non-Fungible Tokens i.e. NFTs were mainly hyped back in 2021.  The recent market situation may not justify the inclusion but with proper use-case and utility in NFTs that leverage blockchain technology for transactions, there is ample scope in the future.


✦ Baas: Blockchain-as-a-service


Baas is one of the trending concepts. In fact, companies like Microsoft are already using it. Blockchain-as-a-service will act as a cloud service where users can make digital products operating blockchain fundamentals.

Hyperledger Cello is one such BaaS undertaking. It is a forum that has tools and applications that promote the creation of digital products founded on the blockchain.

Future of Blockchain in social networking

According to statists, by 2025, there will be roughly 4.4 billion social network users globally. Utilizing blockchain on social networks will assist in solving inherent problems such as solitude breaches, data control, or content authenticity. That is why this emerging technology utilized in cryptocurrency, is a future trend in social networking.


So, just like the above-mentioned prospects, many other domains such as Real-Estate, FinTech, eCommerce, etc. will benefit from the blockchain.

Conclusion on the Future of Blockchain

By now you may get a sense that Blockchain is certainly one of the most advanced technologies that deliver better security, transparency, accessibility, and immutability of data. And as we have noticed throughout this blog, the blockchain industry will continue to develop at a stunning pace. Also, it has moved past its initial use case of cryptocurrency and is now being operated by different enterprises and sectors.


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