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Why smart contracts and blockchain technology have been trending negatively recently.

why blockchain and smart-contracts have lost the glamour  — by Martin Muthomi
why blockchain and smart-contracts have lost the glamour  — by Martin Muthomi

As it stands, blockchain technology has already transformed from just being a digital ledger for cryptocurrencies to being adopted in different industries like the banking sector as well as the medical sector. Additionally it has exhibited great potential to be used in governments to streamline the public service and may soon be applied even in conducting general elections. The convenience, transparency and reliability that blockchain brings along makes it a super-effective technology. However, if viewed from another perspective it may be a super-catastrophic technology.

On the other hand, the continued adoption of smart contracts may lead to the automation of multiple processes across various industries. To get the big picture, smart contracts are usually programs that automatically execute assigned processes, once certain predetermined conditions are met. They are more synonymous to industrial robots. That being the case, if smart contracts are fully adopted in the industrial sector, lots of resources in terms of manpower and time will be highly saved. Consequently, the impact on employment will be catastrophic. There will ultimately be a massive reduction of jobs and opportunities.

Blockchain and smart contracts will cut headcount for some professions, but create other jobs

There is no argument on the proposition that blockchain and smart contracts will reduce the number of those who work in the various sectors where they will be applied. As a result of the capability to smooth out transactions in the sectors whilst ensuring high accuracy and efficiency, firms will require fewer workers and reduce their operational costs tremendously which will be achieved by cutting down the number of employees.

The truth is, transactions carried out via blockchain/smart contracts require very little supervision and oversight. This implies that jobs will no longer be relevant in the presence of the revolutionary technologies.

In the same way, the internet turned the tables on the finance and banking sectors in the late 1990s, widespread adoption of these technologies dictates that several roles will become obsolete and vanish as new one's mushroom into existence. From my point of view, I think it is more accurate to deduce that these roles will evolve rather than just saying that they are going to disappear.

As a result, we are expecting to see the development of new fields in the security sector like identity protection and encryption since institutions will still be required to detect fraud, audit records and also detect threats from several malicious sources.

It is safe to conclude that a wider range of careers will go through these effects as blockchain and smart contracts take their maiden flight and develop more applications for their concepts to achieved and put into commercial practice.

One of the most promising uses of the blockchain, which could also have a catastrophic effect on the banking sector, is in mortgage lending and home sales. Blockchain will streamline the process which will also have direct impacts on lenders and estate brokers.

How will blockchain and smart contracts be used in the future?

Though they may have catastrophic effects, if used appropriately, they will have immense benefits to governments, consumers, and to some extent even banks and other financial institutions. However, for those who might brace the full impact of the negative side of the technologies, there is no need to fear of being tossed out of the streets of the financial world overnight. Though it might pack the power and might of a tsunami, it is not a phenomenon that is going to happen overnight.

Though the concepts of these new technologies have been growing leaps and bounds since their inception, it will be several years before we can experience their full force and widespread application.

The primary concern on the technologies is that developers will have to make them 100% secure to create trust and increase confidence. Though currently smart contracts and blockchain seem more secure than most traditional payment methods, skeptics will always jump at the opportunity to criticize their slightest failure. For sure, it will take some time to build public confidence, and any negative attack could prove to be mortal.To survive the future, smart contracts and blockchain need to be secured and standardized before they can wallow in the glory of global adoption. Nonetheless, my anticipation is that by the year 2020, we should start seeing considerable impact on many services as a result of the technologies.I don’t deny that it is difficult to predict in what way the game will be changed but it will be wise to start developing plans to avert the catastrophic effects blockchain and smart contracts may have on our jobs. A dramatic shake-up soon is expected soon.

My advice is simple; make hay while the sun shines. You must diversify your skills and experience now.
This article was originally published on @justin_martin