Blockchain technology is one of the most important developments of the past half-century. This “open, distributed ledger” makes anonymous, peer-to-peer transactions possible–and it’s the foundation of cryptocurrencies like Bitcoin and Ethereum. It’s also being used for corporate recordkeeping, smart contracts, supply chain systems, video games, and distributed ledgers.
However, blockchain is only as good as its data protection. The technology has gained such a massive following because it is billed as “unbreakable.” But new developments in quantum computing are threatening that ultra-secure status.
Major tech companies and blockchain consulting firms are taking the lead on blockchain security and quantum computing research. This article will explore the basics of blockchain technology and quantum computing–and help investors understand what the future holds for distributed ledgers.
An Introduction to Blockchain Technology
While blockchain was just an afterthought a decade ago, the global market for this technology and expert blockchain consulting services has exploded in the past several years. It’s currently worth an estimated $1.2 billion today and experts predict that it will be worth more than $57 billion by 2025, growing at a rapid annual pace of 69%.
This technology is the foundation of the cryptocurrency market and makes popular currencies like Bitcoin and Ethereum possible. It accomplishes this by turning the traditional banking process on its head.
Normally, in order to transfer money to someone else, a person must contact their bank and ask them to transfer money to a specific person and account number. The bank holds the money, initiates the transaction, and serves as the ledger for that account.
Banks record transactions in the sender’s account and their internal records. The receiving bank must do the same thing. However, the problem with this system is that records are stored on an internal…