The top 5 blockchain technology trends you need to know
Blockchain technology is poised to disrupt many industries and solve problems that were previously thought unsolvable. Here are 5 of the top blockchain trends that you should know about. They may have far-reaching effects in the years to come, so understanding them now will only benefit you later on.
1) Businesses are building blockchains from scratch
1. As the demand for transparency and security increases, businesses are looking to blockchain technology to provide a solution.
2. By building their own blockchains from scratch, businesses can customize the level of security and transparency that they need.
3. Additionally, by controlling their own blockchains, businesses can avoid the fees associated with using a public blockchain.
4. However, building a blockchain from scratch requires a significant amount of resources and expertise.
5. As a result, many businesses are turning to third-party providers who can help them build and manage their blockchains.
6. These providers often offer a variety of services, including consulting, development, and maintenance. 7. The cost of these services varies widely depending on the provider, but most companies estimate it to be around $50-$200K per year (averaging around $130K). 8. Not only does this cost vary widely, but it also comes with different levels of expertise. 9. While some providers will have employees that specialize in just one or two areas (e.g., design or development), others will only have employees who work on multiple tasks at once. 10. If an organization wants a provider who specializes in specific tasks (e.g., designing or developing), then it should expect to pay more than an organization seeking more generalist assistance (e.g., those that only specialize in one or two areas). 11. In addition to providing the technical expertise needed to develop and maintain a blockchain, many third-party providers offer business consulting services as well. 12. Businesses may use these consultative services in order to make decisions about when it would be appropriate for them to build their own blockchain vs when they would want to use a public blockchain, as well as other pertinent questions such as:
13. What type of data is appropriate for inclusion?
14. How do I create transactions? 15. What is consensus algorithm? 16. What should my token do? 17. How should my smart contract function? 18. Generally speaking, if your business is considering building its own blockchain, you'll want to think carefully about how much control over your data and how much transparency you're willing to give up. 19. Furthermore, if your company has no experience working with cryptocurrencies before or doesn't have any programmers on staff, hiring a third-party service provider might be preferable because of the expertise they'll bring to the table. 20. Third-party providers typically charge $100-$200/hour for basic consulting services (as opposed to monthly subscriptions) which means that hourly rates could range anywhere from $5K-$10K depending on how involved the project becomes. 21. For instance, if your business decides to build its own blockchain from scratch, it's going to require a significant investment of both time and money. 22. Assuming that you hire a third-party service provider to help out with everything from development and implementation all the way through maintenance, you should plan on spending approximately $50-$200K per year ($130K annually). 23. Since there's no single rate for what constitutes expensive when it comes to hiring a third-party provider, there's not really an easy answer to this question either - prices will depend largely on what type of service is being provided as well as the expertise required. 24.
2) Blockchain Forks
One of the most talked-about topics in the cryptocurrency world is forks. A fork occurs when a cryptocurrency splits into two different versions. This can happen for a variety of reasons, but usually happens when the original cryptocurrency’s code is updated or changed in some way. Forks can be temporary or permanent, and they can create two different versions of the same cryptocurrency. They are often implemented as solutions to resolve network problems or unintended consequences of previous updates. In order to do this, the new version hard forked from the previous version by changing some parameters so that it is incompatible with the old one. Bitcoin Cash was created by a hard fork on August 1st 2017 from Bitcoin Core's legacy transaction history after a long debate about scaling up transaction throughput on its network (ref). Litecoin was also created from Bitcoin through a hard fork on October 7th 2011 due to differences in opinion within the developer community regarding block size limit (ref). The resulting competing currencies called Bitcoin Core and Bitcoin Cash continue this debate today. It has been proposed that bitcoin cash is a separate crypto currency because it does not share any history with bitcoin core and their features differ substantially (ref). However, some say that there are no substantial changes between the two coins because both use SHA256 encryption algorithms which prevents ASIC miners from mining both coins at once. It has been speculated that there will soon be an increase in bitcoin cash mining pools as well as an increase in BCH trades on exchanges since they were just introduced. There have also been talks of other cryptocurrencies like Ethereum having forks in the future due to their recent success at running ICOs and serving as platforms for decentralized applications. While these events may seem insignificant now, they could have huge implications down the line if things go according to plan. For example, if Litecoin overtakes Bitcoin then the latter coin will lose value while the former becomes more valuable. The market has reacted very positively to these developments, with trading volumes being affected positively across all markets including BTC and LTC. Another potential outcome would be that Ethereum overtakes Bitcoin as the dominant cryptocurrency; this could lead to large ETH price increases given ETH's faster block time and higher degree of difficulty for GPU miners than BTC. If your digital wallet supports multiple types of coins then make sure you take advantage of forks when they occur! If you don't want the coins from your favorite cryptocurrency split into two, simply avoid the process altogether by not participating in either side of the chain until it's too late. Be aware that even though many people will trade coins before and after a fork event, many others won't participate in either side. They'll keep their balances in whichever coin they already own and wait until something else catches their attention instead. All in all, forks tend to be confusing for those who aren't experienced enough with cryptocurrencies or don't understand what a fork is. You should always stay informed about upcoming forks so that you're prepared for them! New coins will be created and old ones will change, so you can't afford to miss out on the best opportunities. Take a look at our website for regular updates on the latest developments in this area. We hope that this blog post has helped you better understand the concept of cryptocurrency forks and how they work. For a full explanation of the various types of forks, as well as examples and diagrams, check out this article on CoinDesk. The link is also available on the left. For a full explanation of the various types of forks, as well as examples and diagrams, please see this article on CoinDesk.
3) Use Cases in the Real World
1. Big data management
2. Supply chain management
3. Healthcare data management
4. Identity management
5. Digital payments
6. Copyright protection
7. Smart contracts
4) Governments Will Have A Say In The Future Of Blockchain Technology
Governments around the world are starting to pay attention to blockchain technology and its potential implications. In the past, government involvement in new technologies has often been a death knell for innovation, but with blockchain there is a real possibility for governments to use it for good. Here are the top five ways that governments will shape the future of blockchain technology. 1) The IMF predicts that many countries will issue national cryptocurrencies by 2030. Already Venezuela and Estonia have shown interest in developing their own digital currencies. 2) China plans to block access to online platforms and mobile apps that offer cryptocurrency trading services in an effort to stem financial risks such as fraud or market manipulation. 3) The EU plans on implementing stricter regulations on how companies collect data about people, including personal information about people’s behavior on social media networks and other sites like Google or Facebook. They also plan on building up measures to punish those who misuse the data they've collected. 4) Countries like Russia and Iran may restrict citizens from accessing some types of crypto-related activity because they fear losing control over economic policies if they adopt more liberal approaches to regulation. 5) The Bank of England recently published a paper detailing their work exploring central bank issued digital currency which would be designed to maintain price stability while also being capable of meeting commercial demand for payments and settlements, much like cash does today. They believe that this type of digital currency could provide major benefits in terms of delivering low-cost retail banking services securely. For example, the BoE's research suggests that UK retailers lost £6 billion due to payment card fraud in 2016 alone. It's likely that this figure would have been even higher without Chip & PIN (EMV). With blockchain, it's possible that retailers won't lose so much money to fraudulent transactions anymore. Blockchain can do away with the need for a physical point of sale terminal, instead allowing consumers to use smartphones at checkout counters to scan QR codes and pay with digital tokens. Retailers don't need to worry about securing expensive equipment either since everything happens on the consumer's device through encryption keys. Blockchain could also help reduce costs associated with things like identity theft since all private information is stored locally within individual devices, not centralized servers where hackers might find sensitive data easily accessible. Blockchain is still in its infancy, but governments can certainly play a role in shaping what happens next. How might blockchain technology impact various industries? 1) The National Association of Securities Dealers Automated Quotations, or NASDAQ, is considering using blockchain technology to power a system for issuing and trading shares in privately held companies. The goal is to make the process of transferring ownership faster and cheaper than ever before. NASDAQ isn't the only company looking into blockchain's capabilities: Nasdaq Inc., the owner of NASDAQ, is also experimenting with the technology. 2) Blockchain offers benefits for healthcare organizations too. Electronic health records are notoriously susceptible to hacking attacks, putting patient privacy at risk. But when data is recorded on a blockchain, it's secure and difficult to tamper with - thus making healthcare records more trustworthy and secure. Another potential use for blockchain in healthcare is the management of supply chains. Supply chain management is the coordination of activities that transport, inventory, and sell goods or services to customers. Blockchain could change this industry in two significant ways. First, blockchain could create a more efficient supply chain since it's transparent and immutable; every transaction is recorded on a shared ledger. Second, there are more opportunities for peer-to-peer collaboration with blockchain and less need for intermediaries like banks or agents to facilitate transactions. In short, the days of sending physical letters back and forth just to purchase a product are coming to an end thanks to this new technology. Even in countries like China, blockchain will inevitably have an effect on the way that the country handles financial risks. Blockchain technology is changing how we think about data and digital transactions. Just as the internet made it easier to share information with anyone around the world, blockchain is making it easier to transfer funds or valuable items with anyone across borders. Banks and governments are taking notice of this phenomenon and already working on ways to shape how it will impact their systems in the future. The BoE's recent report is a great example of this, suggesting that blockchain has the ability to fundamentally change how we bank and how our transactions are validated. As governments take steps to understand this new technology, they may also restrict their citizens from accessing certain types of crypto-related activity in order to protect themselves from losing control over economic policies. Countries like Russia and Iran may see blockchain technology as a threat and respond with strict regulations. In the U.S., for example, the SEC and CFTC have announced that cryptocurrencies like Bitcoin will be classified as commodities. This classification means that if someone is investing in a cryptocurrency with the expectation of profit from a rise in value, then it will be considered a security and subject to federal securities laws. These regulations could impact how investors view blockchain technology. Some may argue that by making cryptocurrencies more secure, blockchain technology could actually make them safer to invest in. Others might say that this classification will prevent or slow down innovation in the space since most innovations are created with the intention of making profits on their increase in value. At any rate, governments have an opportunity to guide blockchain's development to maximize positive outcomes for their economies and societies while minimizing negative effects.
5) Blockchain Security Is Becoming Less Of An Issue
In the early days of blockchain, security was a big concern. But as the technology has matured, security concerns have diminished. In fact, many companies are now using blockchain to improve security. Here are the top five trends in blockchain security
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