Since the launch of cryptocurrency, the focus of people has been on the assets rather than on the major force driving it. Obviously, people see the currencies for the profits mainly but the backbone behind cryptocurrencies is the blockchain technology. People are more anxious than before and want to learn with time to earn more fruitful benefits.
Cryptocurrencies have caused the expansion of economies that have amazed millions. The major cause, blockchain technology is the cream of the crop in this virtual world. Do you want to know how can this blockchain technology transform the economy? So, stay with me in this article.
What is Blockchain?
Before heading to the transformation let us know what is blockchain. Blockchain is actually a peer to peer distributed master ledger. Here all the record of transactions is kept. Blockchain is beyond any governmental control and central banks. The user has his own copy of the ledger.
The copies of ledgers are synchronized through the consensus algorithm. The users never saw the other side of this innovation beforehand. They have never seen before what can blockchain provide to them.
Why do we need Blockchain?
Since the invention of technologies, the world has gone into a materialistic approach. So, the blockchain for the crypto world has been the best creation. For the financial system, the decentralization system was much needed.
The fiat currencies that have been always controlled by the central banks; people always wanted a privacy level. The global economy has hit the financial crisis more than any other. The evolution of blockchain has threatened the foundations of such financial systems. The tip of the iceberg is that the impact of blockchain technology is being realized by many people today.
How can Blockchain technology affect our lives?
Cryptocurrencies have provided financial services and access to digital wallets. This has nothing to do with the banks and strict policies. There are more than 2 billion people today without any bank account.
The bewilderment is not having an account but is that still these people without any bank accounts are transacting money and storing them in their wallets. What is the security then? This question may come to your mind.
The security is through blockchain technology. It is the only thing that has protected the usage done by these people. It has bucklered the financial services to a higher level.
Even the newbies have a sense of shield with this master ledger. The further doubts are eradicated by a worthy platform like the bitcoin rush. Platforms like these help in the learning procedures of the crypto world.
The economic transformation could be exemplified in the way cellular phones have impacted. It was easier for developing countries to acquire huge amounts of cell phones rather than providing a new infrastructure for landlines.
In the same realm, cryptocurrencies have shifted the economy by their technology from fiat money and credit cards. There has been much corruption recorded in the financial systems under the name of charities. However, an organized ledger would reduce such manipulations.
Moving a step further, blockchain technology can be placed in further processes such as the voting system. Many problems came out with voting where some parties took the higher percentage through the wrong means in polling stations. However, with a systemized blockchain technology these obstacles could be removed leading to a better system.
In the UK the government has used blockchain in student loans while tracking the underprivileged. However, blockchain can be used by the government in the health sector where the paper trail system can be replaced by organized information about patients and funds given by the government.
Blockchain can regulate the systems by developing a corruption-free country ultimately expanding the economy. The money printing corruptions and other hindrances can be solved.
Blockchain technology can even replace the intermediaries for the shares. Even Japan has embraced cryptocurrencies as legal tender. Many banks have even started using this technology.
The banks are today trying to incorporate it to free the bank from government pressures. This would create a corruption less system. The results of blockchain technology look astounding. The benefits earned through such technology are beyond comprehension.