Home Blockchain Bitcoin technology, blockchain, only halfway through its evolution

Bitcoin technology, blockchain, only halfway through its evolution

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Servers for data storage are seen at Advania's Thor Data Center in Hafnarfjordur, Iceland August 7, 2015. REUTERS/Sigtryggur Ari
Servers
for data storage are seen at Advania’s Thor Data Center in
Hafnarfjordur, Iceland

Thomson
Reuters


  • In a wide-ranging report on blockchain and
    cryptocurrencies, Credit Suisse said blockchain would reach
    full maturity in 2025.
  • Market watchers can expect 2018 to be a year in which
    “certain products go viral” and “new providers/models
    emerge.”

 

The hype around bitcoin,
and its underpinning blockchain technology, is real. But we are
still a ways off from blockchain reaching full maturity. 

Blockchain, which is best explained as a decentralized ledger, is
best known for being the technology behind red-hot bitcoin. But
its potential use-cases do not just reside in the world for
digital currencies or financial services, according to a
wide-ranging report by Credit Suisse, the Switzerland-based
bank. 

According to the bank, a survey conducted by the World Economic
Forum found 58% of executives anticipate 10% of global GDP to “be
stored on the blockchain before 2025.”

That’s the year Credit Suisse expects the technology to reach
full maturity. At the moment, the technology is in the middle of
the prototype and pilot stage.

Market watchers can expect 2018 to be a year in which “certain
products go viral” and “new providers/models emerge,” according
to the bank.

Here’s a chart illustrating blockchain’s development timeline:


Screen Shot 2018 01 11 at 1.32.33 PMCredit
Suisse

2017 saw a lot of blockchain partnerships come to fruition. In
financial services for instance, a number of banks launched
collaborative ventures to test out the blockchain. 

In December, UBS announced
a pilot with a number of other banks
, which will help prepare
them for Markets in Financial Instruments Directive (MIFID) II, a
sweeping regulatory overhaul in Europe that went live this year.

Instead of trusting a third party to review data and then provide
feedback about the accuracy of each party’s data, the banks will
rely on the blockchain.

Financial services is not the only industry that’ll benefit from
blockchain, according to the bank.

“In fields where there is perhaps more room to experiment with
real-world applications, such as consumer products and
manufacturing, we have seen companies begin to deploy blockchain
solutions in 2017,” Credit Suisse said. 

As for 2018, the bank said it will be a critical year. 

“Blockchain solutions will come into production as the
“low-hanging fruit” of the industry is addressed – i.e. where
blockchain’s use is immediately obvious, such as payments and
trade finance,” the bank said. 



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