Will the blockchain continue to exist even if the Bitcoin does not? This is a question that is foremost in the minds of people investing in blockchain-oriented projects. The truth is that blockchain as the technology on which Bitcoin had been founded will continue to survive even if cryptocurrencies fade away. Cryptocurrencies have been using the blockchain or distributed ledger technology for processing and recording transactions in a decentralized way.
Why will the blockchain survive?
- The blockchain comprises of many blocks of data that are records of transactions between parties. This ledger contains identical copies of transactions that are held by nodes or computers in the network. Since the ledger has been distributed across all network nodes, the blockchain stays secure. The Bitcoin made its debut in 2008 and has been followed by many other crypto coins ever since. But today they remain a niche area exclusively for crypto enthusiasts. On the other hand, the blockchain has been able to get recognition from a variety of industries that are now looking for ways to incorporate this technology in their operations. So, it is likely that even if the Bitcoin fails to achieve mainstream adoption the blockchain will continue to weave its magic and remain the most significant innovation to have surfaced in the cryptocurrency boom.
- Because of the blockchain’s nature the parties involved can view transaction history. The block contents are protected with robust cryptography and ensure that earlier transactions cannot be counterfeited and destroyed. So, the blockchain guarantees that a digital currency can exist without a centralized authority.
- The blockchain may have been most popular for facilitating emergence of crypto coins, but it has many other uses as well. This technology is likely to outlive crypto coins in terms of their impact. Financial advisors and investors will be working more with blockchains in the future. And this time it may not be linked to a cryptocurrency, rather it will be utilized in a variety of applications.
- Money-transfer services had been time-consuming before the advent of blockchains. This was particularly challenging for transfers across international borders. When many currencies were involved, the transfer needed the involvement of multiple banks in various locations before the recipient could finally receive the fund. However, with blockchain technology, this money-transfer can be much speedier and cheaper. That can be identified with automated bitcoin trading apps like bitcoin lifestyle which are driven by algorithms supported by blockchain technology.
- Smart contracts are one of the strongest blockchain applications; they are programs which oversee an agreement thoroughly, right from facilitation to implementation. These contracts are self-executing and offer a far more viable alternative to traditional contracts. Applications of this technology can be endless and you could use these smart contracts in any business that deals with contract laws.
- Identity security has been one of the biggest threats in the digital age and the blockchain technology has the power to transform online identity management. It guarantees a high level of security because of independent verification processes through hundreds of computers within a blockchain network. For instance, this technology can now be used for protecting voter identities and seamless functioning of electoral processes.
- Finally, blockchain will survive because of its supply chain uses. A well-functioning supply chain is critical for some businesses and blockchains can be used for tracking supply chains to make sure they run efficiently. It will help to eliminate errors and reduce manual labor.