Blockchain technology burst onto the scene with promises of decentralized transactions, immutable records, and the potential to disrupt various industries. Initially touted as the technology underlying cryptocurrencies like Bitcoin, blockchain quickly captured the imagination of tech enthusiasts and innovators.
However, as with many revolutionary technologies, its introduction in recent years has raised a host of questions about its ability to achieve widespread adoption. Today, as we find ourselves at the crossroads of AI-led technological advancements, it is crucial to assess how far blockchain has come, the scale of its adoption, and the challenges it faces along the way. of its widespread implementation.
The potential for technology to transform sectors beyond finance, including supply chain, healthcare, real estate, and more, has led to heightened expectations and fervent speculation. However, it can also be argued that the technology was introduced ahead of its time, requiring considerable development, infrastructure and education to reach its full potential.
According to Nikolay Denisenko, co-founder and CTO of Brighty App, a Swiss bank that combines crypto and fiat banking, blockchain has both benefits and concerns.
“From a social perspective, blockchain has the potential to empower individuals by granting them control over their data, assets and digital identity, which could enhance people’s privacy, security and freedom of the whole world. Additionally, the decentralized nature of blockchain can help reduce corruption, promote transparency, and foster trust among users,” Denisenko told The Recursive.
However, there are concerns that widespread blockchain adoption will exacerbate existing inequalities and create new ones, he warns.
“For example, access to technology may be limited to those with the necessary resources and technical expertise, potentially excluding marginalized populations. The technology’s anonymity potential could also facilitate illicit activities, such as money laundering and cybercrime,” adds Denisenko.
Blockchain to save the planet?
For people like Sandi Fatic, co-founder of blockchain infrastructure startup Calimero Network, the technology even has the potential to save the planet, as he highlighted during his keynote speech at the Green Future Conference in Split, Croatia, last week.
“There’s a lot of negative buzz about blockchain, like with scams and stuff, but we don’t talk about the good things in the world. Many people are unbanked – 1.7 million people worldwide, do not use banks and have started using Bitcoin and blockchain. This also opened up a large global market. Also the war in Ukraine – one of the things the crypto community has done is raise $187 million since last year to support humanitarian action in Ukraine. And these things are not talked about so much and I think they should be visible,” says Fatic.
Additionally, there are many use cases where blockchain technology is already making a difference, he claims.
“There are many use cases where ESG in FinTech can be combined with blockchain, e.g. energy, P2P platforms, monitoring the amount of electricity consumed, settlement markets invoices for these environmental treaties – you can track the amount of funding for each environmental treaty. treaty. Then you can tokenize carbon credits, track them, trade them, see what their quality is, supply chains, etc. So you could create a blockchain in which each participant has a private key and you can follow the process from harvesting, landing, processing and distribution to the consumer,” says Fatic.
Although there are major concerns about the mass adoption that would be necessary for blockchain to truly make a difference, for Fatic the process is already underway and there is no turning back.
“I think many governments are currently working on blockchain adoption. People also say that businesses will never adopt blockchain. And I tell them: 10 years ago, they said they would never adopt the cloud. Everyone uses the cloud now. They said, “You know, we don’t want to be digitized. Today, everything is digitalized. In five or ten years, I think all companies will operate on a blockchain,” he emphasizes.
There is still a long way to go for blockchain to make a difference
For others, while blockchain is indeed here to stay, the current phase the technology is in is still in its infancy.
“We are certainly still in the early days of mass adoption and application of blockchain and I would certainly consider that we are still in the ‘innovative stage’ of blockchain for years to come, although there are “real use case scenarios that are really taking off for blockchain,” Semir Gabeljic, director of digital asset hedge fund Pythagoras Investments, told The Recursive.
According to Gabeljic, these use cases include the tokenization of real-world assets such as real estate, gold, oil and gas, etc.
“All are tokenized and placed on the blockchain to create more liquid markets transparently. NFTs on blockchains have proven useful for patents, global brand campaign launches, and generally as a way to authenticate a work of art for membership via the blockchain. However, there is still a long way to go and this transformation will take several decades,” emphasizes Gabeljic.
“Asset tokenization offers individuals a new way to manage and transfer their wealth securely. At the same time, certain types of smart contracts introduce an increased level of fairness and balance in various transactions. Nevertheless, critics argue that the potential benefits of blockchain could come at the expense of specific sectors and jobs, as the technology could make some traditional roles obsolete,” adds Denisenko.
Furthermore, recent years have also shown that blockchain has made significant progress, effectively attracting the attention of governments, businesses and innovators around the world. Cryptocurrencies have grown in prominence, while blockchain-based platforms and applications have emerged, providing greater security, transparency and efficiency.
Yet despite its notable progress, widespread adoption of blockchain technology remains a work in progress, with several challenges standing in its way.
“I firmly believe that blockchain technology provides an unprecedented opportunity for a majority of individuals to significantly and sustainably enhance their freedom as citizens and individuals. Yet, as beautiful and challenging as this may sound, we must remain vigilant about the potential risks of technology and ensure that its benefits are shared equitably in society,” concludes Denisenko.
