The future of blockchain in eight charts
The future of blockchain in eight charts
Canadian writers and researchers, Alex and Don Tapscott, authors of the fresh book Blockchain Revolution, explain that blockchain goes way beyond the 2nd coming of the internet. The pair, like so many others, stumbled across blockchain via the bitcoin association, quickly realising the genie is out of the bottle.
For beginners, blockchain is essentially a database, a giant network, known as a distributed ledger, which records ownership and value, and permits anyone with access to view and take part. A network is updated and verified through consensus of all the parties involved. When something is added it cannot be altered and, if it looks valid to everyone, the update is approved.
“The very first generation brought us the internet of information. The 2nd generation, powered by blockchain, is bringing us the internet of value, a fresh, distributed platform that can help us reshape the world of business and convert the old order of human affairs for the better. But like the internet in the late-1980s and early-1990s, this is still early days.”
Join us as we break down the future of blockhain in eight charts.
Blockchain, a distributed ledger, is an asset database that can be collective across a network of numerous sites, geographies or institutions. All participants within a network can have their own identical copy of the ledger. Any switches to the ledger are reflected in all copies, similar to a Google doc. On the other arm, a centralized asset ledger, or clearing house, the model presently used by financial services globally, is a list of transactions that is managed by a single entity.
Following on from the chart above, with a distributed ledger inbetween financial institutions, most transactions would be real-time and therefore instant.
The illustration below shows eight key areas of financial services which blockchain technology is likely to convert, ranging from making current accounts obsolete to creating fresh peer-to-peer (P2P) financing models.
Using the law of diffusion of innovation curve, blockchain is predicted to stir past the ‘Innovators’ phase in two thousand sixteen and reach the 13,Five per cent of “early adopters” within financial services. The “tipping point”, according to Accenture, is then expected to happen in two thousand eighteen when the early majority of financial services begin to see the benefits of the early adopters and fresh models emerge. This growth phase is predicted by Accenture to last until two thousand twenty five when blockchain will ultimately become mainstream within financial services.
Global venture capital funding grew by ninety one per cent in two thousand fifteen compared to the year before, or an incredible seven hundred twenty six per cent over the last two years. $216m was inveseted in blockchain in the very first quarter of two thousand sixteen and it was the very first time that blockchain and hybrid startups raised more money than bitcoin startups according to CoinDesk.
Interestingly, looking at historical venture capital spend (see earlier chart) vs future capital markets spend, it would show up that the main funding for blockchain technologies will come from outside of the financial services industry (incumbents).
When Silicon Valley Bank asked sixty eight UK fintech leaders to identify the greatest chance for fintech disruption in 2016, “infrastructure” (including blockchain and API) was the top pick according to thirty seven per cent of respondents.
Author of Blockchain Revolution Alex Tapscott concludes,“With blockchain technology, a world of possibilities has opened and we now have a true peer-to-peer platform that enables private economic empowerment. We can own our identities and our individual data; we can do transactions, creating and exchanging value without powerful intermediaries acting as the arbiters of money and information.”
It’s clear for those watching the evolution of blockchain that we’re at the commence of a digital turning point, an evolutionary step in the way value and chance are created and distributed.