In 2010, Laszlo Hanyyecz made history when he paid 10,000 bitcoin for two Papa John’s pizzas – the first ever instance cryptocurrency was used in a commercial transaction. When this purchase was made, 10, 0000 bitcoins was worth US$25. Since then, bitcoin’s value has skyrocketed and in 2021, those same two pizzas would have been worth US$630 million.
Is the hype surrounding blockchain more than just hype? What exactly makes blockchain and bitcoin so valuable in the eyes of investors? In this blog we tell you all you need to know about blockchain, its applications, where the market is headed and how you can gain the skills needed to work in this sector.
What is Blockchain?
So, what exactly does blockchain mean? Simply put, it is a method of record keeping, a ledger. Information is collected into blocks, and these are then added to a chain of other blocks along with a timestamp. The permanent, irreversible nature of this process and the fact it can be viewed by anyone makes blockchain transparent and traceable. The beauty of blockchain is that it is a decentralised financial exchange and so doesn’t require a third party, like governments or banks, to verify the ledger.
Blockchain was first introduced in 2008, in a whitepaper published by Satoshi Nakamato (a pseudonym used by an individual or a group of individuals), and built on these early concepts. A year later, the first bitcoin was mined – translating blockchain from an abstract concept to reality. Blockchain is sometimes confused to be synonymous with bitcoin and so, used interchangeably. It’s however not the same – bitcoin is a type of cryptocurrency and the blockchain technology powers bitcoin.
Future of Blockchain and its Applications
With major driving factors contributing to the high growth rate of blockchain market such as increasing venture capital funding and investment in blockchain technology; extensive use of blockchain solutions in banking and cybersecurity; high adoption of blockchain solutions for payment, smart contracts, and digital identities; and rising government initiatives, the blockchain market is expected to reach USD 67.4 billion by 2026.
Blockchain’s value does not just stop at digital currency. It can be used as a digital contract to verify an agreement between two parties and is called a ‘smart contract’. A range of financial activities can be carried out through this method, such as trading, investing, lending and borrowing, as well as for property transfers. As large corporations like PayPal and Tesla also started accepting cryptocurrency as a legitimate form of payment, the buzz around bitcoin and blockchain further intensified – driving up its value.
Working in the Blockchain Field
In a thriving technology hub like Singapore, areas of blockchain, artificial intelligence, data analytics and machine learning have the potential to transform several industries.
According to a report by Indeed, jobs requiring blockchain, cryptocurrency or NFTs (non-fungible tokens) knowledge have grown 80% in Singapore. With traditional financial firms like Goldman Sachs Group, Bank of New York Mellon and DBS Group Holdings also starting to offer cryptocurrency services and trading, the demand for skilled, experienced talent in the field is also increasing.
Enrol in PSB Academy’s Blockchain Course Now
To tackle the challenges of the working world, PSB Academy works with industry partners to equip students with the knowledge and skills to enter the fast-evolving blockchain sector. In partnership with Merkle Trees and ACCESS, the 12-month Blockchain Diploma will provide students with a strong foundation in blockchain technology, programming, interacting with decentralised applications and developing blockchain. Reach out to us to learn more.
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