The future has already arrived: blockchain technologies in the global economy and everyday life

Volodymyr Nosov

Founder and CEO of cryptocurrency exchange, WhiteBIT

Analysts are predicting that blockchains could account for up to 10% of global GDP by 2027. All predictions show that this technology has great potential. That is why it is an outdated approach to consider blockchain only as a part of the crypto world. Blockchain technologies have already influenced all spheres of life by providing innovative, efficient, and transparent solutions.

The main demand of the modern world is security and speed, which in the traditional sense are often incompatible aspects, as high speed often leads to errors. However, blockchain technologies have resolved this contradiction. A simple example is the transfer of international payments. No traditional banking system can compete with the blockchain.

The main value of the innovation lies in decentralization, which allows creating a system protected from any manipulation. Therefore, blockchain is recognized as the best technology in the field of cybersecurity. For this reason, in 2014, the Ministry of Justice launched the OpenMarket e-auction on the basis of blockchain. It became the world’s first land auction that uses cryptographic security technology.

We can already see how blockchain is reforming the healthcare industry. It is used not only to store data, but also to exchange information during clinical trials. As an example, the Zarela platform is used to trade biosignals on the blockchain network. This approach has reduced the cost of research and helped speed up data collection for the treatment of the most dangerous neurological diseases, such as dementia, brain tumors, or Alzheimer’s disease.

Examples of the use of blockchain technology can be found in everyday life: it is used, for instance, to exchange excess energy between households. To ignore this is to refuse the benefits that blockchain can provide and stay in the past and block the development potential of both your own business and the global economy.

Global impact on the economy

Investment experts say that blockchain has already begun to reform the global economic space. According to the research of Agile Dynamics, the technology will influence the global GDP growth to 2.1 trillion dollars by 2030.

According to the Agile Dynamics report, 73% of CEOs see the main advantage of blockchain in reducing operating costs. Additionally, 67% believe that this technology will improve the speed and efficiency of business processes. Other important benefits include increasing security and privacy.

According to analysts, cryptocurrency will have a significant impact on the global economy. It will save billions of dollars on international transfers, trillions on currency exchange, and significant funds that the economy loses due to fraud. In addition, crypto will accelerate the socio-economic development of the second and third world countries.

Large banks have also already been preparing for the upcoming changes. Citibank, for example, has published a detailed report on the economic impact of blockchain. By the end of this decade, digital currencies issued by the world’s leading economies only could be worth $5 trillion and will be available on the mobile phones of 2 billion people. 90% of central banks are currently launching pilot programs using virtual currencies. Moreover, a digital euro is expected in three years. This is the time required for the European Central Bank to complete the technological processes.

A look into the future

The global blockchain industry is predicted to experience tremendous growth, increasing its market size to $265.01 billion dollars by 2028. This surge, estimated at a compound annual growth rate (CAGR) of 69.9%, is driven by digitalization, government support and widespread adoption across various sectors of the economy and social life: finance, trade, government, logistics etc.

Blockchain technology is attractive, because of its ability to optimize processes, making them more accessible and efficient than traditional methods. Smart contracts eliminate intermediaries and ensure that contracts are not vulnerable to alteration or forgery, reducing fraud and risks. The technology also ensures transparency in monitoring ownership and transfer of assets.

In logistics, the use of blockchain will lead to greater organization, automation and potential savings of billions of dollars annually. The ability to track the movement of goods from production to the consumer minimizes the consequences in case of problems and cases of product withdrawal from circulation, as demonstrated by the cooperation of Walmart and IBM in China.

Blockchain is revolutionizing various spheres of life, and its applicability may be even more tangible than we realize. In public administration, the technology can improve transparency, prevent corruption and reduce costs. In voting, it will overcome the problem of bulletin fraud, increase trust and reduce the cost of elections. Blockchain will also become an effective tool for fighting piracy and protecting copyrights by ensuring fair royalty payments.

We can confidently say that blockchain technology will transform not only the financial sector, but also the areas of government, trade, transportation, healthcare, media and many others. The impact on efficiency, cost savings, and integrity of business processes makes it a key tool for the future.

Blockchain is constantly changing, and every day we discover new opportunities and applications for this technology. However, it is obvious that blockchain is not only an innovation, but also a kind of revolution of trust and transparency that opens up new world opportunities.