Tech Companies All-In on Blockchain Technology
With cryptocurrencies becoming a serious asset for investors, the concern has shifted from viability to protecting the accounts and transfers of owners. It is estimated that as much as 25 percent of all cryptocurrency is susceptible to hacking, and this has led for a worldwide call to protect those accounts. Blockchain technology appears to be the answer.
What Is Blockchain Technology
If you are unfamiliar with the term and you are or wish to be involved in digital currency, it will not be long before you are hearing about blockchain technology. This technology allows records being stored on a number of different servers or networks to still have access to one another through an encrypted algorithm.
The various networks are linked together using cryptography. It is believed that the security model will not only protect against hackers attempting to access users accounts, but would also deny them access to the transactions between various servers. This would allow for a well-protected digital currency platform to be implemented worldwide, giving those who have skepticism about cryptocurrencies reason to trust in their investment.
They Are All In
While this may not be the magic solution everyone is hoping for, the reality is that most of the globe is putting their full weight behind blockchain technology. In fact, according to the Worldwide Semiannual Blockchain Spending Guide, a publication provided by the International Data Corporation, it is expected that there will be a nearly 90% increase in investment spent on developing blockchain technology in 2019 over what was spent the previous year.
In 2018, $1.5 billion was spent on the production and development of blockchain technology, but that number is expected to reach $2.9 billion by the end of this year. Even more staggering, it is believed that over the next four years the increase in spending will reach as much as $12 billion by 2022. That is an increase of nearly 1000% in just four years.
Everyone Is Involved
The investment numbers are staggering, but the number of organizations jumping in to help create the technology is also noteworthy. In early February, the largest digital currency exchange service in the world, Coinbase, agreed to purchase Italian startup company Neutrino. The startup was developing high end technology related to blockchains, and Coinbase saw the young company as the solution to their cybersecurity needs.
Days later the largest telecommunications operator in South Korea, KT Corporation, announced that they would be developing a platform that would enable their clients networks to be able to better communicate with one another through the use of this technology.
Colleges and universities are getting involved as well. In January, the Tokyo Institute of Technology announced that they had reached an agreement with one of the largest technology companies in Japan to create and implement blockchain technology. On the same day in February, both the University of Singapore and the University of Edinburg announced that they had reached agreements with large tech companies in their countries to create R&D blockchain technology.
Clearly everyone is chasing the money, whether it is to create technology that will make them a leader (a lucrative one at that) in the development of this technology, or that it will give investors greater security to be able to protect their assets. While there have been some breaches of security related to this innovation, it appears that financial institutions, banks, universities, and other institutions are banking on this technology to be the security wonder of the future. Clearly, it is here to stay.