8APRIL 2021Prediction can be a bit of a gamble. And when cryptocurrency and blockchain are involved, it wouldn't be surprising to see people shying away from scrying experiments of any sort. Blockchain gets a bad rep because of its relation to Bitcoin, the cryptocurrency which many love to hate due to its apparently volatile value. But according to George Gilder, co-founder of the Discovery Institute in Seattle, "Blockchain is the future...it will usher in a world beyond Google." That's a pretty hefty claim to make. In order for blockchain to truly flourish as the next "global fabric for value exchanges and thus value democratization", mass adoption happening in a relatively short period of time is key to success. But, moving forward in the sea of mass adoption, how does the future of blockchain and cryptocurrency look? With companies like Facebook and JPMorgan launching their own coins, will they be able to retain the fundamental decentralization principles of blockchain, or will there have to be modifications to its very basic nature? This is a trending theme within our industry, and I touched on it in my keynote presentation at The World Economic Forum in Davos last year. I also reached out to some industry leader friends of mine to get their thoughts (consensus), which I included below. Read on to see the future of blockchain explained.Blockchain WikiTo start off, let's run through some blockchain technology wiki - how does it work? Blockchain information is not stored in any central or single location (making hackers' lives difficult) and exists as a shared database, which is being updated all the time, globally. Cryptocurrencies use this technology to create a shared decentralized accounting system. For a system whose very basic nature gives primary importance to shared data, equality and decentralization, mass adoption initiated by digital conglomerates like Facebook could be potentially threatening. Facebook, one of the world's most powerful companies, since its inception has been widely harvesting and monetizing data, and that any of its products would put personal data in jeopardy is a safe bet. And cryptocurrency, which is supposed to be widely mistrustful of centralized financial authorities, is falling back into the fiat trap of trusting a single entity with your money, with the creation of Libra. In fact, ONLY the members of the Libra Association can mine its blockchain information, turning the association into a giant central bank. These developments raise crucial questions about the future of decentralized cryptocurrencies post mass adoption.Related: Blockchain Innovation - The Future of Payments and Borderless P2P CommerceHow Does Blockchain Technology Work?Let's take a look at why exactly decentralized blockchain is considered to be the star of the future of data sharing. After explaining basic blockchain technology, it's probably clear that it addresses a lot of the concerns prevalent in the "Google Age", starting off with things like fragile internet security, and other things like concentrated economic power and high transaction costs. This is also what prods Gilder into suggesting that Google as the middleman, so to speak, may not require an existence soon. It's also a safe and interoperable tool which allows the coexistence of privacy and deeper community behavior insights. As Dr. Freund suggests, blockchain's capacity to "remember" everything within it allows for a seamless community sharing experience.The World Economic Forum recently launched a central bank digital currency policymaker toolkit. Sheila Warren, the head of blockchain and DLT at the WEF said that the potential impact of CBDC implementation on the global economy was one of the main reasons behind the framework. Digital currencies improve financial data transmission, reporting and traceability. The president of the European Central Bank, Christine Lagarde also accepts the presence of a huge demand for CBDCs, in order to enable cheap cross-border payments in record time.Can Blockchain Survive Mass Adoption? Future Perils DisclosedJ.D. Salbego, Chief Executive Officer, Founder & Art Director at AnRKey XCXO INSIGHTS
< Page 7 | Page 9 >