Since its inception, Bitcoin has paved the way for broad adoption of cryptocurrencies and blockchain ledger technology. Now, Bitcoin’s promise extends into the fourth Industrial Revolution (Industry 4.0). The wave of development and utilization of Bitcoin as decentralized finance (DeFi) for this new revolution carries enormous potential for an increasingly connected global economy.
Industry 4.0 is making waves across global commerce. Bitcoin, through advancing networks and accessibility, challenges traditional perceptions of banking and finance. Meanwhile, its capabilities can assist organizations in overcoming the scalability challenges inherent in global trade. From reducing the negatives of the informal economy to empowering international trade through visibility, Bitcoin will come to mean a lot more to world industry in this current technological revolution.
We see the promise of Bitcoin in solving both the challenges of cryptocurrency and larger economic issues. Networks like Rootstock (RSK), Lightning and Liquid elevate Bitcoin solutions for modern supply-chain visibility and business innovation potential.
Reducing Global Poverty
One of the most promising roles of a digital currency like bitcoin has always been its global appeal. The decentralized nature of crypto means it can travel around the world safely and immutably without having to be converted or processed through a third-party transaction system. As a result, financial solutions are open to those without access to traditional or international banking systems.
Additionally, the opportunities inherent in DeFi systems stand to help elevate developing countries out of poverty and into a global financial infrastructure. We’ve seen such circumstances play out in the growth of Bitcoin in countries like Nigeria, where public perception shifts and crypto applications grow despite governmental oppression and corruption. The value of bitcoin is too evident for this currency to disappear even in restricted markets.
That’s because bitcoin can be used to stabilize fledging economies using a global standard that no one nation owns. In Nigeria, protestors used it to combat a silencing of free speech, donating Bitcoin to aid groups shut out of centralized banking. This demonstrates the role of Bitcoin in fighting corruption and enhancing one’s control of one’s own financial assets. Similarly, breaking the mental and physical health strain of financial burdens requires that individuals be able to budget and invest as they deem best. Meanwhile, opportunities on a global stage abound for Bitcoin users.
Now, designated networks for managing Bitcoin finances make it easier than ever to engage with these opportunities in a global marketplace. RSK is one example, offering smart-contract functionality over the Bitcoin ecosystem. Users can automate financial transactions based on pre-conditions built into a smart contract. From here, there is unknowable potential in optimizing supply chains and trade deals for mutually beneficial financial gain across countries and industries.
Bitcoin uniquely allows for the creation of a wholly decentralized economy because of the access it provides to a layered, stackable marketplace. Developers all over the world can access this functionality to support people and businesses in decentralized financial solutions. In turn, greater interconnected opportunities and more secure finances are possible regardless of where you are in the world.
Eliminating Scalability Challenges
Cryptocurrencies have historically had many rails on their capabilities, throttling transaction amount or speed and hampering Bitcoin usability. That isn’t the case anymore. Advancements in Bitcoin networks and smart contracts are eliminating scalability challenges, allowing Bitcoin users to engage in commerce as simply as they might with a credit card.
Lightning Network is one example of these scalability solutions. Capable of processing billions of transactions per second across this layered blockchain framework acts against the limitations of legacy systems by managing transactions off-chain while still storing the data in a blockchain ledger. Therefore, the blockchain serves as both arbiter of authenticity and the enforcer of smart contracts. Such functionality stands to support the growth of smart contracts on Bitcoin networks as the fourth Industrial Revolution flourishes.
Paired with advancing artificial intelligence, these networks enable never-before-possible levels of growth for enterprises. That’s because Bitcoin blockchain ledgers and smart contracts can interact with other data-driven technologies to foster unprecedented insight into businesses, behaviors and supply-chain functionality.
The most important tech trends of 2022 revolve around the applications of data in automation and AI as a result of Industry 4.0 advancements in these areas. The Internet of Things (IoT) brings data collection potential across business processes. Then that data is stored over increasingly smart cloud systems. AI is the final piece of that puzzle, layering with Bitcoin to produce automated growth solutions.
Securing Financial Data
Among these solutions are enhanced security provisions for financial data. Bitcoin blockchain networks support security from the base layer. However, additional security can be layered over the blockchain via the stackable nature of Bitcoin. This enables secure and fast Bitcoin transactions from Layer 2 and beyond.
The Liquid Network provides precisely these benefits for Bitcoin transactions. Liquid acts like a conversion process, backed up one-to-one on the Bitcoin mainchain. After converting coins to Liquid, users gain greater speed and confidentiality from transactions and can issue new assets like stablecoins and security tokens. From here, introducing greater security into financial management can be a convenient process for any party completing and verifying a transaction with Bitcoin.
Industry 4.0 requires the means to complete transactions quickly and securely since our interconnected world conducts business at a rapid pace. Bitcoin’s layer-ability and network- development features enable enhanced security of financial data even when these transactions aren’t occurring on the base layer of the Bitcoin blockchain. Through the power of Bitcoin networks to further security alongside convenience, one might only expect Bitcoin to grow in popularity with emerging Industry 4.0 tools.
Empowering Global Trade
Finally, Bitcoin is reasserting its promise in the fourth Industrial Revolution by empowering greater visibility and convenience in global trade on the whole. Reducing global poverty, eliminating scalability challenges and securing financial data are all steps on the road toward broader Bitcoin integration in world markets. Because this cryptocurrency has the stackability to layer enhanced security and functionality, new data-driven markets have plenty to gain from embracing this technology.
As the world continues to struggle with pandemic-era supply chains and cybersecurity challenges, the implications of Bitcoin are more powerful than ever. For enhancing the potential of Industry 4.0 in your own ventures, explore the power and trajectory of these Bitcoin networks and innovations.
This is a guest post by Frankie Wallace. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.