Blockchain technology is identified with entering the Internet’s second era, whose cornerstone is the exchange of not only information but also value. Its architecture makes conducting transactions that involve no intermediaries possible, and consequently is cheaper and limits onerous bureaucracy.
What ensures trust in blockchain networks is mostly such features as: system transparency, high-quality data, single point of failure absent, high security level thanks to cryptographic mechanisms.
From a cybersecurity perspective, blockchain shows potential to help improve the following areas: identity management – providing a secure ledger of actions for vulnerable Internet of Things (IoT); configuration and patch management; and supply chain security – tracking through the entire chain of custody.
Blockchain provides an innovative trust anchor that can help transform decentralised cities and organisations to make them more distributed, autonomous and secure. A more egalitarian economy could potentially emerge as producers and consumers regain value from across the supply chain. More control over transactions would occur as consumers become prosumers.
The growing number of sectors are using blockchain to introduce innovations and become cheaper, more transparent and effective. This technology is going to change traditional cumbersome and error-prone systems improving, among others, banking and financial services, data management, global economy, fair trade, and open societies.
Thought it’s revolutionary and beneficial to the numerous areas of modern-day digital economy blockchain has a few limitations (mostly referred to its widespread type Bitcoin) like high energy cost, scalability, lack of legal norms, use in illegal activities, privacy issues and cybersecurity gaps which have to be overcome to optimise use of this technology.
Blockchain regulation is not an easy task as it finds itself based on a fragile equilibrium which should ensure the protection of users against criminal misappropriation, while fostering further development of this innovation. The ultimate aim of regulating blockchain and DLT technology is to ensure the new business ecosystem being built on it is framed and rests on legal certainty. Setting up a stable and legally well-developed environment is vital to attract entrepreneurs, to ensure a fair level of competition and to achieve economic growth in the sector.
According to different reports the size of the global market for blockchain baised solutions varied beetwen 411.5 and 708 million USD in 2017. The most dynamic sectors of the market in terms of revenue creation are: banking, financial services and insurance (BFSI/Fintech), manufacturing and supply chain and healthcare. Venture Capital Blockchain Investments in 2018 reached almost 4 billion USD globally. There are at least 2500 cryptocurrencies in use, with global capitalisation of USD 187,523,091,732 (as of 15.11.2018).