Cryptocurrencies have clearly seen their fair share of ups and downs. From USA to Japan, every country has now looked into these and formed its stance on regulating them; after all, every single investor in the world looking for new avenues has looked into cryptocurrencies as an opportunity. Bitcoin and Ethereum have been at the forefront of the crypto wild ride, having a market cap of $100 billion and $45 billion respectively.
The ones who wanted to speculate upon cryptocurrencies speculated and either went on winning big or losing big. Jamie Dimon, the CEO of JP Morgan, was clearly against cryptocurrencies for a long period of time but in 2018 even he changed his opinion. USA saw its first legitimate acceptance of financial instruments based on cryptocurrencies. All in all, no one can accurately predict the upside or downside of Bitcoin and Ethereum but cryptocurrencies are here to stay in some or the other form.
While the speculators were busy studying the upward and downward trends, the intelligent investors looked into understanding the cryptocurrencies and the technology behind them. Each of these cryptocurrencies is based on blockchain. The simplest way of defining blockchain would to be call it an encrypted public ledge which records every transaction between the parties involved.
Bitcoin serves as token on this network while Ethereum serves as a smart contract. Beyond these applications, Blockchain Solutions provide highly sophisticated utility in several key areas of business and administration:
1. Encrypted public ledgers for banks, financial institutions and capital markets: Blockchain technology can serve as a huge support system for financial institutions looking into both running, leveraging and regulating financial markets. Stock exchanges can use these systems for maintaining real time data of listed companies, banks can use financial transactions in encrypted mode for better credit ratings thereby increasing their lending activities. Finally, the market regulators like SEC (USA) or SEBI (India) can use encrypted public ledgers to see the upcoming trends in the capital markets and look for any discrepancies.
2. Enterprise software upon a blockchain network for operational management: Blockchain application development can seem very complex at its core but it can have great impact on the daily running of a company. One of the key developments in the software development industry have been the ERP systems which help behemoth organizations run with startup like efficiency rates. That said, these ERP systems are usually lagging and expensive. If the same ERP systems are made over a blockchain network, they can provide real time data and analysis to the top management based on even the minutest of transactions occurring on a daily basis.
3. Blockchain for government bodies: Those who believe that blockchain can only work for private organizations looking forward to adapting, you couldn’t be more distant from reality. Blockchain as a network can be of great value to any set up which has a humongous amount of data being added, removed or altered on a very regular basis and one which involves a big number of participants. Hence, any system falling in these criterion can leverage blockchain for its benefits, including government bodies. For instance, with the help of a very sophisticated set of blockchain developer the administration of Visakhapatnam, a port city in India, is working towards creating a blockchain based network of real estate records. This way, the data shall remain available, safe and accessible.
With advancements in blockchain, software development will have to shift towards more collaborating approaches like agile development, over the more rule based approaches. Hence, blockchain will only foster avenues for innovation and opportunities for software developers.