Any new technology and theory has to pass through immense backlash and protest after being accepted and dissolving into our day-to-day lives. Be it the postulates of the heliocentric solar system, the theory of evolution, or the present-day Internet. All these faced much criticism from people in the beginning, but later they realized their truth.
Blockchain is another emerging technology that has already seen massive applications in cryptocurrencies, primarily Bitcoin, Ethereum, Solana, Polkadot, and a thousand others. However, it has gained the value it holds after riding through several high tides and not losing to them.
Bitcoin, which became the face of blockchain during its launch in 2009, faced criticism and was not widely accepted. It remained limited to the small community of enthusiasts and eventually paved the way into the shady area of the black market. At one time, it was widely used to conduct black market deals that involved arms, ammunition, drugs, terrorist funding, and even human trafficking. However, it survived the challenge and soon people, primarily investors, realized the potential of a decentralized, transparent, and digital coin. The value surged and following its path, other coins were also launched. Ethereum paved the way for decentralized finance (DeFi) through the feature of smart contracts. Blockchain has now seeped into several other sectors as well and is no longer limited to just being a financial buzzword.
We are currently relaxing in the arms of the traditional financial system, which used to be looked after by a central authority. Although the examples of the 2008 economic crisis, bank collapses in early 2023, and later privately owned FTX exchanges are constantly presented to us, we tend to ignore them and consider them table stakes.
Blockchain promises a decentralized and transparent network where all the data is stored in a public ledger that is immutable. The idea of transparency excites and haunts us equally. First of all, people want the system to be accountable and they demand that all data be visible to everyone. At the same time, they also fear exposing their details to the public. Decentralization eliminated the need for a third party as a watchdog and all the authority rests in the hands of the people. The trust factor is at the heart of the present centralized system, with people trusting a third party to manage their funds legally and keep them safe. Although several measures are taken to eliminate trust, it always pops out in some way, starting the whole cycle again. Blockchain uses the concept of cryptography to encrypt data and keep it safe. Similarly, the use of different consensus mechanisms like proof-of-work (PoW), proof-of-stake (PoS), and others ensures that only legitimate players are part of the game.
It also reduced the economic disparity that is prominent now, where some people do not even have bank accounts and although they do, we find some struggling to get loans and others running away with millions of dollars. Technology is not limited to a region or country; rather, it has the power to unite people and run on a global scale.
As discussed, blockchain is revolutionizing other sectors as well, such as education, healthcare, supply chain, and others. Countries are opting for blockchain to digitally store the data of land ownership, which has always proved to be time-consuming and confusing. Mass adoption, however, lies in the hands of people who need to realize its power and potential. The future we are all heading for can be completely changed once blockchain gets mainstream attention and support.