Over the recent years, blockchain has gained massive popularity on a global level and it is continuing to gain momentum even in 2022. Popularity of blockchain technology is now expanding more than ever as it continues to be integrated into various industries such as banking, music, accounting, and online marketplaces, among others. Blockchain technology has witnessed peaks of hype and downfalls but with rising popularity of metaverse and cryptocurrencies, it is expected to witness an upward climb again.
Blockchain Takes Centerstage As The World Shift Towards A New Digital Era
Blockchain is a digital ledger technology that enables digital transactions in a secure and immutable manner. These transactions are recorded securely across several computers that are connected in a peer-to-peer network. In the post-pandemic world, blockchain is at the forefront as we shift towards a new digital era.
Blockchain records transactions with immutable cryptographic signature known as hash. Each block in the chain comprises a number of transactions and each new transaction that occurs in the blockchain are then added to the ledger of a participant. If any block in the chain is changed, it is directly apparent that it has been tampered with. Blockchain essentially reduces hacking, cyberattacks, and data theft of sensitive information. Popular blockchains such as Bitcoin, Ethereum, Tezos and Solana, among others are constantly and continually evolving and growing as increasing number of blocks continue to be added to the chains. Blockchain is apparently different from normal databases because it is not run by anyone – but by the people who are using it.
Since data on the blockchain cannot be modified, it has emerged as a disruptor for various end-use industries that deal with sensitive data such as payments, cybersecurity, banking, and healthcare industry. Potential applications of the blockchain technology includes fund transfer, voting, settling trades, and others. Among other things, blockchain is the technology that enables them existence of cryptocurrency. Bitcoin, one of the best known cryptocurrency, is the prime example for which the technology was invented and introduced. Blockchain, however, has numerous applications beyond Bitcoin and cryptocurrency and from the point of view of business, it can contribute to the development of software that can facilitate next-generation business processes. Blockchain has the potential to significantly improve business process that occur between companies, in turn, drastically lowering the cost of trust. This leads to higher returns on investments as compared to other internal investments.
Blockchain and IoT – Creating a Smarter Future
The Internet of Things (IoT) is a term for technology that facilitates easy communication between smart devices. In the past decade, the potential and use cases of the IoT have expanded from making smart devices to elevating mundane household items and machinery to another level of automation. IoT has radically transformed the way enterprises operate through the use of sensors and other edge devices. But, with increasing number of connected devices across the globe, new challenges have emerged for data security. Blockchain has potential to play a crucial role in combating security breaches in the IoT systems.
Blockchain can efficiently combine with IoT to enable seamless machine-to-machine transactions and uses a set of transactions that are recorded in database and verified by multiple sources before they are entered in the ledger that is distributed across every node in the blockchain. The amalgamation of IoT and blockchain offer numerous potential benefits and can enable efficient and autonomous functioning of smart devices – all without needing a centralized authority. Blockchain has been widely implemented in association with IoT in industries such as banking, financial services, agriculture, and automotive. Integration of blockchain technology has enabled enterprises to effectively manage massive datasets on edge devices in an IoT system and in turn, minimize the costs of IoT device maintenance and data transfer.
IoT and blockchain can be used in numerous verticals such as freight transportation – wherein an IoT-enabled blockchain can effectively store temperatures, position, arrival times, and status of shipping containers in transit, in tracking components that are a part of aircraft, automobile and other products which are critical for both safety and regulatory compliance, and track and log operational maintenance data to ensure safety of machines and alert third-party repair partners on time.
In short, blockchain empowers IoT devices to fortify their security and bring transparency in the ecosystem. IoT is thriving excellently and is now gearing for radical growth over the coming years.
According to a study by Reports and Data, adoption of IoT and blockchain technology is on a rapid rise with over 84% of major businesses already involved in it. The report also projects that the global blockchain market will be worth $174 billion by 2028. Owing to its decentralized nature, blockchain reduces IoT’s dependence on centralized servers and single points of failure that can expose IoT-enabled devices to a myriad of cybersecurity vulnerabilities.
Blockchain and Metaverse – What the Future Holds?
Blockchain has multiple use cases such as logistic monitoring and tracking, and secure sharing of healthcare information. However, it’s most relevant application for the metaverse is cryptocurrency, which are digital currencies or assets that can only be traded via online systems and authenticated by the decentralized network on the blockchain.
Blockchain has a myriad of applications in the metaverse such as it can be used to create immutable in-game assets in the form of non-fungible tokens (NFTs) that users can earn and sell. Assets can remain completely undamaged even in cases if the user quits the game, deletes it, or if there is an adverse event in the metaverse. Blockchain can also keep a track of the users and their identities in the ever-changing and evolving landscape of the metaverse, acting as a virtual equivalent of the social security number. Identity changes such as appearance, age, online activity history, and other details can be easily stored on the blockchain, in turn, preventing any crime or fraudulent activity in the metaverse. In fact, not just for identities, but blockchain can also act as an immutable record of the way real estate is created, altered, traded, and demolished in the metaverse.
With the development and advancements in the blockchain technology, fancy imaginations that were just concepts have started taking shape and have found a way to become more than just concepts, and metaverse is one of the those concepts. Experts across the world are showing tremendous interest in the niche and have suggested that blockchain and metaverse have the capability to revolutionize digital space and the Internet.
“Development of blockchain-based metaverse can pave the way for a highly immersive and engaging virtual world that can potentially change the way everyone in the metaverse interacts. In addition, the ability of blockchain to function globally fundamentally differentiates the metaverse form the conventional internet.”
Metaverse stores data that is measured in exabytes and this raises the question of safe and secure storage, transmission, and synchronization – this is where blockchain steps in. Blockchain technology becomes extremely relevant here with regards to decentralization of storage and data processing nodes. It can augment trust by introducing tokens, which are secure storage devices that are capable of transferring and transmitting virtual content, personal information, and data and authorization keys in an encrypted form. Moreover, blockchain can facilitate joint interoperability and functioning of different systems and interfaces without any limitations. Blockchain, all in all, reduces the risks of malware, hacks, and other vulnerabilities and can facilitate the creation of a stable virtual ecosystem.
Blockchain is an integral part of the metaverse considering the technology enables users to protect their digital assets in the rapidly evolving virtual world. It is actually impossible to dream of a full-fledged metaverse without the integration of blockchain technology. Blockchain augments transparency and economic growth and progress of the metaverse industry. In addition, it will also allow different ecosystems to be combined highlight yet another potential benefit of this technology. The Sandbox, Decentraland, Star Atlas, Enjin, and Bloktopia are some popular and top blockchain ecosystems.
The Bottom Line
Blockchain has the potential to be a catalyst for a positive change and shape the future — the way we transact, play, and trade. The popularity of the blockchain technology is on the rise with over 90% European and U.S.-based businesses exploring ways to integrate blockchain technology in their operations. And not just that, businesses across the globe are putting in efforts to broaden the scope of the technology. For instance, in May 2022, Crypto Valley venture Capital announced the launch of an early-stage fund for African blockchain startups and has partnered with Swiss State Secretariat for Economic Affairs (SECO). The objective of the fund is to accelerate the growth of 100 or so blockchain startups in Africa over the coming 4 years.
Blockchain is ideal for delivering sensitive and important information as it can provide immediate, shared, and completely transparent information that is stored on an immutable ledger that can only be accessed by permissioned network members. With increasing knowledge regarding its potential applications beyond cryptocurrencies, blockchain technology is expected to create waves in the market and disrupt every single industry on the planet.
Written by: Bhakti Shuke | Edited by: Ravi Kumar
About the Author
Bhakti Shuke is a research writer at ReportsAndData with a zeal for next generation technologies. She is passionate about science and healthcare but also has a fervor to stay updated with the latest happenings in the world. When she is not writing, she can be found immersed in a book pretending the outside world doesn’t exist.