Ignore those self-proclaimed digital pundits who were claiming that blockchain was a passing vogue and would soon become obsolete. This technology has paved the way for decentralized finances and allowed a public-controlled market to become mainstream in the post-COVID economy. Statistics prove that 65% of the world’s major tech firms are actively developing blockchain-based software solutions in 2022.
Today, more than one-fifth of Americans are buying, trading, and investing in cryptocurrency. This Reddit-fuelled and meme-inspired popularity of digital money is altering the tech sector as we know it.
Now, let’s discuss how it’s doing so.
The Influence of Blockchain on the IT industry
How would we describe the working of a blockchain? Understanding this technology doesn’t require any college degree. A blockchain is a digitally distributed, decentralized ledger spanning across different computers where transactions happen without third-party involvement. All network participants must possess a copy of your data stored in the blockchain, making this information permanent, unalterable, and hacking-proof.
Satoshi Nakamoto efficiently utilized this technology to create the world’s first cryptocurrency. Today, bankers are leveraging this technology for projects other than inventing better digital currencies. Moreover, experts consider blockchain development among the fastest-growing skills required for future jobs.
But how has blockchain changed the IT sector today? Well, non-specialists mostly discuss blockchain when they are talking about cryptocurrencies. Sure, crypto has become a massive investment opportunity for many. You can easily buy cryptocurrency and invest in it via reliable online platforms.
However, these history-changing technologies have other benefits as well. Since the data is read-only, it becomes immune from unwanted alterations. Its decentralized structure gives it more transparency than traditional currencies. Also, these transactions are time-stamped, and you can easily track them back to when they were made. Due to these qualities, blockchain and cryptocurrency are transforming the IT sector in the following ways:
1. Makes Record-Keeping Easier
As blockchains protect your information from tampering, this technology can revolutionize record-keeping in the IT sector. Blockchains can ensure that these records remain private yet available to an individual when requested. Besides the IT industry, blockchain technology influences the education, healthcare, and scientific research sector.
It will soon convince the world to make paper-based transactions obsolete by making computer-based documents permanent and reliable.
2. Improving Marketing Campaigns
Tech-based companies are always looking for ways to make marketing more effective. And to improve advertising campaigns, it’s crucial to show ads to the most relevant audiences and cut the intermediary. So, blockchain enhances the efficacy of an organization’s marketing endeavors by showing ads to those genuinely interested in its products/services. As a result, your organization won’t have to waste resources or worry about fraudulent activities. Making your campaigns resourceful requires the precision of technologies such as blockchain.
3. Better Crowdfunding Options
Today, crowdfunding has become a popular strategy for entrepreneurs to fund their startups. Many small-time investors pool their resources to finance a business. Cryptocurrency has removed several hurdles these investors faced and allowed them to contribute easily. These crypto-funded companies have changed how the IT sector operates. We have novel concepts such as ICOs or initial coin offerings in which your business ventures revolve around virtual money as a source of capital.
4. Bolstering Security Measures
A survey shows that almost 30% of companies consider cybersecurity a major issue. Fortunately, blockchain can help these organizations protect their data from hackers and fraudsters. How to keep your data secured in today’s tech-dependent age? Tech-based companies are leveraging blockchains to make their information resistant to breaches by predators online. Consequently, cybersecurity becomes effective at identifying infiltration attempts, making your data 99% hacking-proof.
5. Making Fraud Difficult
The same goes for internet frauds. The concept of cryptocurrency itself serves as a replacement for our centralized finances by making the economy not just transparent but also resistant to fraud. So, many companies today are open-minded about the idea of accepting virtual money as payment.
The crypto-led revolution even convinced countries such as El Salvador to normalize crypto transactions. That’s why we believe cryptocurrency has drastically changed how the IT sector operates.
6. Honing Accountability Practices
The IT sector won’t have to depend excessively on traditional accountants in the future. Blockchains will supersede customary accountancy practices by eliminating the obstacles faced by many business owners operating globally.
Besides, accounting needs more precision when your business operates in several countries. Blockchain technology erases the need to check every record manually since this checkup has been done for you already. Transparency is what it provides.
7. Making e-Commerce Stronger
Thanks to blockchain and cryptocurrency, e-commerce has become stronger today. Several websites are now accepting payment in virtual money, and this innovation heavily benefits today’s IT sector. It has now become easier for tech-based firms to promote business globally and create more opportunities for across-the-border transactions.
Crypto-based transactions are reliable and remove the possibility of fraud. That’s how virtual money is slowly becoming the currency of the internet.
8. Making FinTech Mainstream
Today, consumers rely heavily on FinTech even though they don’t even realize this dependence. More convincingly, surveys have shown that 90% of Americans utilize FinTech-related services regularly. Banks are using “financial technology” to make transactions easier for consumers. But blockchain can eliminate an immense number of hindrances faced by customers. Integrating this technology will let customers enjoy quick, reliable, and cost-effective money-transfer options.
Certain companies are working on applications – such as Adyen – that allow people to pay for goods/services by paying for them with any currency they prefer. That’s why blockchains are important for the IT sector in 2022.
We’ve established that cryptocurrency and blockchain are revolutionary technologies. Therefore, we expect these ground-breaking innovations to alter the tech sector for good. We’ve discussed the plentiful benefits of these technologies in advancing our IT sector.
Blockchain, in the future, will make record-keeping easier while improving cybersecurity measures. You can expect FinTech to one day become mainstream as blockchain makes fraud next to impossible. Moreover, companies can bolster the efficacy of their marketing campaigns with this technology. E-commerce can become stronger when integrated with blockchain, and the IT sector can boost its accounting practices by merging blockchain. While this technology seems incomprehensible to some, what’s undeniable is its plethora of advantages.