Blockchain and distributed ledger technologies will be too difficult to ignore in the future because of problems related to informational management. Currently, there are reasons that make centralized data management inevitable for companies that do not know of distributed alternatives out there or think it is too early or too costly to switch -- say security reasons, optimizing advertising, optimizing customer experience, name them. Decentralized platforms are catching up with the centralized platforms faster than expected in all these regards.
But with centralization of date storage today, companies face hefty challenges relating to management of data, costs, and difficulties in meeting data regulations relating to user privacy and data security. Data security and privacy problems are complicated by the huge hacking exposure realized on centralized storage platforms because that data is easy to access. The risk of hacking will be larger in future because the stakes are high given that data will play a bigger role in advertising, understanding customer behavior and consumption, customer personalized selling and discovery channels. This will increase pressure on companies to invest in better methods of ensuring better data privacy and security. It means surmountable costs for organizations, but remember hackers are also not blind to new tech -- they will keep the chase. In fact, more than 80% of hacking incidences are white-hat and security research-led hacks turned black or malicious in the end because of financial benefits.
On the other hand, organizations will be under huge pressure to invest in larger storage and management processes and labor due to the increasing data and information they will be handling. Information overload is unavoidable for any company trying to scale globally. In future, affordable AI will see companies harnessing more data from multiple sources, in fact, and companies are realizing, already, how huge headache it can be to manage vast amount of data from multiple sources.
In fact I can predict that for any company failing to make its systems a distributed sort of thing from word go or now will finally experience a huge limitation when things are so much going ahead -- there is a limit to which a company can scale with a centralized data platform for instance for obvious technical problems like regulators being worried about the company being to big to manage because it controls vast volumes of public data and uses that as a power bargain -- we have in deed seen that with Facebook already. These limitations are beginning to happen for every tech company currently willing to scale largely. So technically centralized platforms are going to make it hard even for the big tech with massive resources to scale, because for instance of political issues.
Remember information overload and management of it is something the world is struggling with whether you are talking about storage costs, space, and regulations. The problem will multiply heavily in future.
Blockchains are way ahead in this because they let users keep their data, hence freeing themselves from regulatory obligations of data privacy, hacking problem, storage costs, and data management headaches. We know they are already harnesing those benefits as we speak. And these information headaches, costs and problems will certainly multiply in future for other companies even in the face of better innovations that can process and generate data faster. This will happen even in the face of better AI and supercomps because we know these two will already be way too costly for governments leave alone corporations and individuals. Of course companies like Facebook and Google and governments will likely chase these better AI and better supercomps thing because they just believe better data processing and classification etc is needed for personalized selling and boosting advertising revenue, and security for the case of governments, but they too will face these hefty costs and info overload problems as they scale.
Finally, more companies -- pushed by these pressures, are likely to look for methods they can scale without the pressures. The search may take years for many, but the best bet out there is on those technologies allowing companies to relief themselves of the duty and need to manage huge customer data even especially those that do not need to use such data for customizing experiences and personal selling and advertising. Even many of those who will be using data this way and would want to continue may find the scaling limitation finally. Is there a distributed tech out there that can help with personalizing user experiences, advertising, and selling? Yes. With better security, user privacy, and data management like on blockchain. So at the end of the day companies will realize that centralized data storage and such platforms are more of a burden than blessing.
So those companies likely to stay put in the end are those that will just stick with distributed systems that free them of those headaches. Already, some centralized companies, realizing the potential, are beginning to switch partially and slowly.
This is what will make blockchain, digital ledgers, and any distributed system out there too hard to ignore in the future.