The invention of the Internet has led to new technologies that are revolutionizing information sharing, use, handling, and application. Blockchain is a modern innovation characterized by time-stamped data records managed by numerous computers without a single owner. Technologists apply cryptographic chains or principles to secure such data blocks and remain bonded to one another. Such a series of data records are distributed in a free manner without a central source of authority. The literature review presented below describes the possible future trends of blockchain and bitcoin technology, future trends of its application, and the potential implementation in the United Arab Emirates (UAE) private and government sectors.
Literature Review
Background Information
The origin and invention of blockchain technology are attributable to an unknown person called Satoshi Nakamoto. Some analysts and technologists believe that the identity of the expert could be a group of programmers (Weldon & Epstein, 2019). However, the concept of cryptography emerged in 1991 after Scott Stornetta and Stuart Haber conceived an ingenious idea of creating secure timestamps for documents. The adoption of Merkle trees made their original design more efficient and capable of condensing certificates into a single chain or block. Nakamoto went further to improve the model by adopting the Hash-cash model to timestamp data blocks without the need for trustees to sign them.
A powerful or difficult parameter was introduced that resulted in the stabilization of the established information sets. This framework would eventually become the basis or foundation of the bitcoin cryptocurrency. This is a public ledger for the major financial transactions executed on
the global network (Andoni et al., 2019). Weldon and Epstein (2019) indicate that bitcoin blockchain had already grown exponentially to around 20 GB by 2014. Due to the expanding nature of this ledger, experts argue that it will have exceeded 200 GB by 2021 (Weldon & Epstein, 2019). The efficiency and nature of this invention has encouraged organizations to consider new ways of experimenting with blockchain technology.
Future Trends of the Applications of Blockchain and Bitcoin Technology
The principles of this technology explain why its applicability in different fields and areas is unavoidable. Depending on the nature of the developed blockchain, stakeholders, users, or parties are in a position to view previous entries while at the same time entering new ones. The existence of complex guidelines explains why anyone would not just add new data or records. A powerful cryptocurrency model is, therefore, in place to prevent the available digital content from being destroyed or forged. Consequently, Leible et al. (2019) believe that future users will find it trustable and capable of supporting trusted transactions. The fact that no central authority is needed explain why their decentralized model remains useful. The integrated and stable nature of blockchain explains why it has continued to support digital currencies. Schackelford and Myers (2017) go further to indicate that such a technology is capable of impacting a wide range of transactions and service provision practices. While this invention is still in its infancy, chances are high that it will find numerous uses in various fields.
The UAE government and businesses rely on transactions and processing systems to provide timely support to the targeted clients. Unfortunately, the current rate at which value is transferred from point A to B remains slow, uncoordinated, and sometimes expensive (Leible et al., 2019). Transactions taking place between the United Arab Emirates (UAE) government and international businesses tend to take time before processing, execution, or transmission. This challenge affects stakeholders due to the fact that there are numerous stakeholders and protocols that need to be taken into consideration. Blockchain invention is a new model that can make such cross-border transactions and payments more efficient (Ismail et al., 2019). This technology will minimize the incurred costs and deliver real-time processing and transactions. This approach will make it possible for many companies and governments to achieve their goals.
The nature and efficiency of blockchain and bitcoin innovations make them the best targets for supporting smart contracts. This framework means that all agreements and their details will be supported using computer programs. The fulfillment of all requirements and the completion of the payment procedures will result in self-enforcing or executing contracts (Jun, 2018). This approach will improve the level of transparency and security. The costs of formalizing agreements will decline and make it possible for more companies and governments to achieve their goals. Those involved should be aware of the potential drawbacks of such smart contracts and consider new ways of improving their effectiveness in the world of business.
The emergence and continuous use of the Internet in Dubai presents a number of challenges that might affect individuals, the UAE government, and even corporations. One of these predicaments that many stakeholders stand to encounter is that of identity theft. With the increasing number of hacking and phishing cases, it becomes possible for companies to embrace the power of blockchain to transform the manner in which users can identify their partners and clients (Zhang et al., 2019). The independent approach for verification and the inability to duplicate blockchains means that all verification processes are simplified and transparent. The government can go further to embrace blockchain model to support voter registration and ballot casting systems (Beck et al., 2017). Such a system will ensure that the collected data is secure and transferred across all the intended platforms and systems. Additionally, the information will be accessible to more people while at the same time remaining secure.
The business world has a potential to embrace the utilization of blockchain and bitcoin technology to transform supply chain processes. Makridakis and Christodoulou (2019) assert that the globalizing global community has created a scenario whereby many suppliers, customers, and marketers in UAE and across the world remain interlinked. However, such systems are usually time-consuming since transactions will need to be verified and match the demands and expectations of all the involved partners. This model has been found to result in delays, wastes, and sometimes mismatches (Andoni et al., 2019). Blockchain technology remains promising in this area of logistics since it will promote efficiency, authentication, and processing of information. The strategy has the potential to reduce human effort by 100 percent and locate errors that could affect the process negatively (Zīle & Strazdiņa, 2018). The lessons gained from the current application and proliferation of bitcoin cryptocurrency means that there are several untapped areas of blockchain technology. Those involved will need to focus on the potential benefits and consider new ways of meeting the demands of all key stakeholders.
Arguments and Counterarguments
The above possible applications of blockchain and bitcoin technology mean that it presents numerous opportunities to government agencies and companies. First, companies can embrace the power of this innovation to develop data sets that will streamline operations and ensure that customers’ demands are identified and fulfilled. For example, the technology can reduce different forms of data duplication and identity theft (Kogure et al., 2017). Users can pay for services and products instantly without room for error. Second, blockchain is a game changer for companies that want to overcome the challenges experienced when acquiring raw materials overseas or exporting different finished products. The framework has the potential to streamline operations and focus on the expectations of individual partners.
Third, these technologies create a sense of security since the acquired and stored information blocks are verified and protected against unauthorized users while at the same time being available to all partners. Companies can compete successfully with established corporations by adding value to their customers, streamlining business operations, and maximizing profits (Yli-Huumo et al., 2016). Fourth, governments can rely on blockchain technology to streamline a wide range of operations intended to provide timely, efficient, and personalized services to all citizens (Ruoti et al., 2019). This model will minimize cases of duplication or errors. Different departments can link their data sets to ensure that the targeted citizens receive transparent and timely support or services. The increased level of coordination from the use of blockchain technology can empower more citizens to pursue their economic goals.
On the other hand, there are specific disadvantages that stakeholders need to consider before implementing or adopting such technologies. The first one is that they utilize large quantities of energy that might be unavailable in the developing world. Consequently, an unequal platform might emerge and make many companies and governments in the developed world more successful. The second possible drawback is that this form of technology is threatened by data mining (Schackelford & Myers, 2017). While the blockchain tend to be secure and hard to hack, some ingenious ways of accessing and changing the information will emerge in the future (Liu et al., 2019). This means that many companies and individuals will be at risk of losing crucial data or financial resources. The third possible disadvantage associated with the future applications of this technology is that blockchain sets are usually not permanent. Some programmers can alter them and undermine their efficiency.
This weakness explains why they might fail to resonate with the long-term expectations or goals of different corporations. Finally, blockchain technology still remains limited in terms of accessibility and supportive resources. Those relying on it will be unable to meet the demands of all citizens or customers in every corner of the targeted country (Woodside et al., 2017). These unique attributes explain why it would be necessary for different stakeholders to focus on the potential challenges and opportunities associated with blockchain technology and make appropriate decisions.
Conclusions
The above literature review has identified blockchain as a superior technology that has a wide range of applications. The government and established businesses in the UAE can rely on it to achieve numerous gains, provide high-quality services and support to citizens or patients, and minimize cases of identity theft. It presents additional opportunities for safeguarding information, streamlining transaction processes, and improving supply chain procedures. However, this invention has specific challenges that explain why it should not become an automatic game changer for governments and business organizations. In conclusion, all stakeholders should consider the outlined benefits and match them with the potential barriers that might affect their implementation and make informed decisions.
