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Blockchain technology, initially recognized for its application in Bitcoin, has transcended the boundaries of the financial sector. It promises to transform a variety of industries thanks to its ability to offer greater security, transparency and efficiency.
Spain is one of the leaders in blockchain adoption in Western Europe. With a projected growth in investment of up to 54%, investments in the country exceed 377 million dollars. However, despite widespread enthusiasm, experts stress that blockchain still faces significant challenges that must be overcome for its transformative potential to be fully realized.
Decentralization and security: the pillars of blockchain
Maria Fernanda Juppet, CEO of CryptoMKT, points out that blockchain applications are going beyond financial transactions, ranging from supply chains to data security and identity management. He claims that security is one of the biggest strengths of blockchain.
Once information is inserted into the chain, it is protected by cryptographic algorithms, making it immune to manipulation and cyber attacks. Juppet also highlights decentralization as a key benefit, eliminating the need for intermediaries and allowing direct transactions between parties.
The integration of blockchain with artificial intelligence (AI) is seen as one of the most promising areas. The combination of these technologies could greatly improve how data is analyzed and used for real-time decision making. This synergy is especially relevant in the context of cryptocurrencies.
Cryptocurrencies and artificial intelligence could evolve together. AI could help forecast market trends and optimize operations. A study carried out by Ametic revealed that approximately 10% of Spanish companies have already adopted blockchain. They have done this primarily through early-stage pilot projects.
AI can analyze large volumes of data generated by blockchain transactions, allowing market trends to be forecast and operations optimized. This analytics capability can improve efficiency in supply chain management and increase security in enterprise data management. At the same time, the immutability and transparency of blockchain complement AI by providing a reliable and verifiable record of operations, increasing trust in automated systems.
The challenges of scalability and regulation
Despite its benefits, blockchain technology is not without its challenges. Scalability remains a major concern, with many existing blockchains struggling to process transactions quickly as the number of users and transactions increases.
To address these scalability issues, several technical solutions are being explored. Among them, second layer networks (Layer 2) such as Lightning Network, which helps alleviate the load and increase processing speed. Another solution is sharding, which consists of dividing the blockchain into segments to allow faster processing speed and reduce load. In addition, progress is being made in the implementation of new consensus algorithms such as Proof of Stake (PoS), which reduces the consumption of computational and energy resources compared to Proof of Work (PoW), traditionally used in blockchains such as Bitcoin.
Interoperability between different blockchains also represents a major obstacle to mass adoption, according to Ramiro Raposo, VP of Growth at Bitwage. He mentions that technology needs to mature so that large companies feel confident investing in large-scale implementations.
How challenges are being overcome
In Spain, interoperability challenges are being addressed through the development of new protocols. These protocols allow efficient communication between different blockchain networks. For example, the XCLAIM protocol facilitates the trading of cryptocurrency-backed tokens from one blockchain to another, improving the flexibility and options available to businesses and users.
Additionally, technologies such as cross-blockchains and relays are improving scalability and enabling more seamless transfer of assets and data between blockchains.
And regulation is another area that needs more clarity. While some countries have embraced the technology with favorable regulations, others are still in the early stages of establishing legal frameworks that support the use of the technology without stifling innovation.
In Spain, blockchain and cryptocurrency regulation is advancing to be clearer and more structured, especially with the incorporation of the European regulation of Cryptoasset Markets (MiCA), which is expected to come into force this year in the country. The National Securities Market Commission (CNMV) has taken steps towards creating a regulated environment that encourages innovation without compromising consumer protection. This includes implementing a regulatory sandbox to experiment with tokenization and digital asset management.
Blockchain, beyond finances
The European Blockchain Convention, which was held in Barcelona last year, is a reflection of the dynamism of the sector in Spain. This event brought together over 200 blockchain and cryptocurrency experts, offering a platform to discuss the latest trends and developments in the industry. The reach of blockchain goes far beyond cryptocurrencies. In the healthcare sector, for example, technology is used to improve medical data management and ensure the privacy and security of patient information.
Leo Elduayen, CEO and co-founder of Koibanx, mentions that technology has the potential to also revolutionize the real estate and agricultural sector, with the tokenization of real assets, providing a more transparent way of managing property.
Tania Lea, director of Azteco for Latin America, considers that blockchain is essential for the democratization of financial access. She explains that More than a billion adults around the world have a smartphone, but not a bank account. Blockchain allows these people to participate in the global economy, facilitating access to universal currencies such as bitcoin. Spain is among the top 25 worldwide in the use of cryptocurrencies.
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