Ever since the introduction of computers and the internet, commerce has benefitted the most. As faster speeds and more powerful technologies have maintained banks and currency all over the world, digital transformation in the financial market has evolved.
Because the category governing business transactions using the internet has been the most preferred method for the past decades, technological evolution has introduced cryptocurrency to the world. This is where digital currency such as the popular "bitcoin" is exchanged on a daily basis, more so than physical currency. And in just a few short years, the cryptocurrency market has yet again created a new system - the Blockchain.
Bitcoin and Blockchain
To put into perspective a single bitcoin can sell for up to $12,000, and up to 13 bitcoins are being mined by a single person each day. Now imagine if groups or even an entire country would utilize bitcoin to its fullest, then the possibilities are almost endless. And this is where blockchains would come into play.
Blockchain is the technology that runs Bitcoin. It provides an answer to digital trust as it records digital information (without being edited) with full transparency, safety, security, and global accessibility. It is a distributed, decentralized, public ledger developed over the last decade that has become one of today’s biggest ground-breaking technologies. It has the potential to impact every industry from the financial sector, to manufacturing, and even up to the educational institutions. That is why there are so many countries today that are adopting the blockchain system, seeing it as a long-term solution to the world's many problems.
Rapid Rise of Blockchain Technology
Blockchain technology is expanding across the world. The rate of expansion experienced a tremendous rise in 2018. And it has continued to enjoy a good run in the financial industry for quite some time now. According to a data statistic, the blockchain market is expected to see a surge of more than 400% by 2021.
You see when you make a transaction whether you trade bitcoins or purchase anything with bitcoins, the date of the transaction is recorded into what is called a "block." A blockchain is a result of a large compilation of these "records" or "blocks." And because blockchains are essentially ledgers of transactions, two parties can use these blockchains to create and secure business networks in order to track any sort of transaction. Thus, ensuring firm communication and trust between the two parties.
The Collaboration of Blockchain in Australia and Latin America
The global application of this technology is expected to affect people's lives. That’s why its enormous potential is explored by different countries. It is turning heads of financial institutions, businesses, and governments all across the globe. Many countries are now supporting the development of Blockchain and establishing partnerships as it opens up enormous opportunities for decentralized economic development.
One good example is Australia and Latin America. The collaboration between the Blockchain Centre in Medellin, Colombia, and the RMIT Blockchain Research Group in Australia is a good start to promote partnership in both regions. While Australia has already established an international reputation for blockchain over a decade ago, Latin America’s lack of trust in their financial institutions has hindered financial inclusion, political participation, and new startups. But nevertheless, they have already started embracing blockchain, leading the way for this market. And with Australia not only being a global leader in the blockchain market but also maintaining a bilateral relationship with Latin America, the latter can reap the benefits of a hyperconnected world with this new alliance.
Australian startup companies that focus on the bitcoin trade and blockchain have grown as much as 8.1% in such a short period of time. Latin America has also followed suit in embracing and experimenting with cryptocurrency and blockchain, with companies starting up and investing in blockchain technologies in the past year. Both countries are seeing an intense focus on securing a more stable economy using this new cryptocurrency market, and to fight against any possible forms of fraud and theft.
While blockchain is still in its early stages in Latin America, many still maintain a positive outlook in the future of blockchain and cryptocurrency in general.