“Blockchain technology is growing at a rapid pace and with the mass adoption of the crypto industry, the time is not far away when blockchain technology will be the backbone of every industry around the world. The power of blockchain technology is derived by its three spearheads – Trust layer, Token and Oracle”.
The Future of Blockchain Technology
Year 2021 has been the victim of the coronavirus pandemic like its previous years but for all the good reasons it will be known as the year of the crypto. The mass adoption that we have seen this year alone is far greater than all the years combined before this. This has led to people believing in the blockchain technology and its important part in transforming every centralized industry in this world. The crypto industry which is purely based on the blockchain technology has reached a market cap of $2 Trillion which is just 1/5th that of Gold. With more and more investors diving into the blockchain technology and its ever emerging use cases such as NFTs and the recent Metaverse, the blockchain technology in itself has the capability of becoming the future of everything we know.
The Three Spearheads of Blockchain Technology
The popularity of the blockchain technology has been largely due to the cryptocurrencies that have been formulated on them but it is the underlying technology that spearheads its fame and they are worthy of discussion:
The biggest problem in the current networking system or the internet is that all the information on the internet is a string of code that can be altered and copied to multiple locations, thus breaching the trust in the system. Blockchain technology’s biggest asset and its biggest strength is its trustless nature. Blockchain technology adds the layer of trust on top of a network to create an ecosystem that is controlled by all the participating nodes of the blockchain network and not by a single entity. The decentralized aspect of the blockchain technology makes sure that there is no malicious actor to breach the trust.
The native token of each blockchain is another spearhead that makes blockchain extremely popular. The token in a blockchain is used as a store of value and can be used to reward and penalize the nodes on the blockchain. It is this rewards and penalty mechanism that ensures trust in the blockchain network. Also, every token on a blockchain can be unique like NFTs and can be used for authentication.
The third spearhead and the one which will pave the path for the future of the Blockchain technology are the Oracles that are used to connect the blockchain to the external environment. A blockchain is secure because it works in a silo and cannot connect to outer environment. The oracles are the bridges that fill this gap and the blockchain can communicate with the environment. These oracles are themselves decentralized and thus ensure the safety of the blockchain network. Oracles will ensure that the blockchain can be used in every aspect of our life.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.