BY STEPHEN PAIR, CEO, BITPAY
Today, blockchain is one of the hottest topics in fintech, but many people don’t understand this technology and how it can change the world.
Last month, I had the pleasure of serving as an expert on Tech Alpharetta’s Cryptocurrency and Blockchain panel. During the event, we discussed the future of this technology and how businesses can use them for payment processing, asset accounting, and supply chain management.
The most well-known application for blockchain is financial. It was once thought we would always need a third party, such as a bank or a government, to be able to trust recorded transactions or changes to financial data. Blockchains function essentially as new kinds of database technologies that allows the exchange of digital value without the need for third parties to maintain trusted records. Data changes, such as financial transactions, are instead recorded on a shared public ledger maintained by a large network of computers.
There are now thousands of blockchain tokens, or cryptocurrencies with the most popular ones being Bitcoin, Ethereum, and Ripple. Bitcoin was the first blockchain and blockchain token. It has been operating since 2009 and has never been compromised. As a primarily financial blockchain application, Bitcoin lets network participants confirm transactions without a need for a central party. All of this reduces risk and overhead for payments.
As new solutions, blockchain and blockchain payments can transform how financial systems work. Even some of the largest financial institutions like Goldman Sachs and JPMorgan Chase are seeing the value in using cryptocurrencies and blockchain to complement traditional services.
According to a report from Gartner, blockchain’s economic value-add on a global scale could reach over $3 trillion by 2030. This technology is changing the way we conduct business and will have an effect on industries such as trade finance, customs clearance, logistics and transportation. It’s an exciting time in cryptocurrency and blockchain and it’s only the beginning. The future possibilities are endless.