Anyone who watches tech or finance headlines has witnessed the rapid rise – and recent decline of cryptocurrency. At the end of 2018, crypto was in somewhat of a freefall, with bitcoin reaching a 13-month low of $5,000. Other popular cryptocurrencies were also feeling the pinch, and the market has lost almost $700 billion in value since January 2018.
No one is quite sure where the market for crypto will head – many still think of it as completely worthless, and scam ICO launches have exacerbated those fears – but it has led to questions about the future of blockchain.
The Future of Blockchain if Crypto Fails
Blockchain was developed specifically for the crypto market. If that market completely crashes, what happens to blockchain? The answer: Likely nothing negative. Many tech pros actually view bitcoin as a proof-of-concept for blockchain. Even if the bottom falls out of crypto, blockchain will continue on.
There is an analogy that people use to help novices understand bitcoin vs blockchain. They liken bitcoin to the Ford Model T. Blockchain, however, is the engine that powered the Model T. Over time, the engine has evolved significantly and remains an integral part of our lives, driving much more powerful machinery, while the Model T has been gone for a century.
Blockchain Does Not Need Bitcoin
The ways in which bitcoin have actually stymied blockchain are becoming more obvious over time. In recent years, blockchain has been criticized for being too slow, but the speed and performance issue actually take root with bitcoin. Bitcoin requires an average of 10 minutes to complete a block and it can only manage seven transactions per second (TPS). However, Ethereum can do 20 TPS and IBM and Ripple can do 1500 TPS. Blockchain is also making its way into other markets, so if the crypto market were to completely collapse and disappear, the technology would live on in finance, law, medicine and more.
Given the limitations of bitcoin and the struggles it is predicted to have in the future, it could end up in the history books as the technology that gave birth to blockchain. The Model T used a 20 horsepower engine and today, Ferraris use over 900 horsepower, imagine what the future could hold for blockchain.
Are You Ready For The Future Of Blockchain?
If you are interested in learning more about staffing a blockchain implementation, the knowledgeable team at Talon can help. Contact us to speak with one of our experts today, and see how our expertise and services can benefit you and your business.