Even though Blockchain technology is one of the growing technologies across the world, a lot of people wonder about its effects. Let’s ask you. What do you think about the effects of bitcoin technology and how it changes the way money works? Let’s also quote Don Tapscott here. For your information, he is the CEO of the Tapscott Group. Tapscott believes that the blockchain technology behind cryptocurrencies has the potential to change the world’s economy.
He even had a discussion with McKinsey’s Rik Kirkland over the benefits of blockchain technology for working together and keeping an eye on transactions. Well, Blockchains are kind of an open-source, distributed database that takes the benefits of cutting-edge cryptography.
Notably, the global financial system deals with trillions of dollars helping billions of people across the world. However, the system has a few flaws that somehow lead to higher costs owing to its fees and delays. It causes more trouble for everyone due to unnecessary paperwork. It also comes with a higher risk of fraud and other inappropriate behavior.
It is pertinent to mention that economic crime affects 45 percent of financial intermediaries as compared to 37 percent of the economy. These include payment networks, stock exchanges, and money transfer services. Indeed the rising regulatory costs have been a major concern in the banking industry because all of this contributes to costs that are paid by the public.
Let’s have a look at it and discuss how it might affect our daily lives in the future. The advantages are very optimistic and it comes with a lot of goals that are too high.
Secure Government Communications
Blockchain-based cryptocurrency has a lot of advantages and therefore, governments think of bringing it on board and spreading it. A lot of countries are allowing you to use some cryptocurrency because it is one of the most secure ways of communication.
Blockchain-Based Authentication
Several experts believe that soon personal information will certainly be kept on Blockchain technology and as a result, a global standard for protecting identity would come into being and provide you with more privacy and authority. Several companies are already understanding it and working on it. With this reliable technology, all personal information, from medical records to work history, would be saved and secured.
Protocols of Trillion Dollars
In an order to become a trillion-dollar business, several companies are taking the economy to heights. With Blockchain technology and its protocols cutting transaction and data costs, the trillion-dollar Blockchain protocols would start appearing.
Blockchain-based global commerce
Blockchain technology is one of the secure ways for two people or groups while send or receive money. Besides, blockchain technology will make it possible in the future to do business across the world. It would make it faster, safer, and more transparent.
Enhances people’s average quality of life
People would be enabled to use better financial services. With the help of blockchain technology, it would be beneficial to get rid of the intermediaries or brokers and let money flow freely. It would be a big advantage to the developing countries besides there would be a lot of resources for the people across the world and it would help billions of people.
Apart from these, there are several possible bright spots in the future of Blockchain technology. It will definitely affect a lot of people across the globe but in a positive manner.
There are three ways in which Blockchain technology is changing lives and the way money works.
The time has changed now. Technology has evolved now and it has been changing a lot of things around. Just like it changed the ways people used to pay for things across the world. It’s all changing right in front of our eyes and we are witnessing the digital revolution.
The payment process changed worldwide
Let’s get on a time machine and go back in time. In 1994, the Bretton Woods Agreement was signed and it was a crucial part of the modern financial system. After the historical World War II, it was necessary for money to keep moving, quickly and safely, all over the “western world.” In order to execute this ideology, the developing countries agreed on the protocols for their economic and financial exchanges that too under the monetary management system.
Well, it significantly enhanced the money system backed by gold. It helped in sending money across oceans. Back then, the US dollar was one of the most crucial currencies in the monetary system. It became easier and cheaper to send money and goods across borders. After over 80 years, a lot of people across the globe wanted to do business with each other, not just in North America and Europe but also across the world. However, the system was not able to deal with these kinds of transactions.
It needed to be made easy to execute transactions and send money. It was then when that blockchain technology came to the rescue. It developed the most feasible and secured network to execute a transaction that cannot be tampered with.
Sending money became easy
Back then, it was difficult and even costlier to send money to an Indian developer via a bank account in Germany. While the paperwork for the SWIFT system used to take a lot of time, an Indian bank was disabled for IBAN wire transfers. As a result, the transaction fee was at least $20 besides a percentage of the amount transferred as a part of the conversion fees. Despite this, the money used to take a few days to clear the recipient’s account.
In the meanwhile, it is very common to hold transfers of more than $1,000 and ask questions to the person receiving the money. The person who gets paid is brought to the state of mercy in front of the authorities and later on, the receiver has to explain why he should be paid.
Well, the blockchain technology-based distributed ledger made it easy to send money across the world and each transaction is registered on the network as a block. It can be accessed by all the participants and it doesn’t have any loophole for cyber-attacks because all the blocks are interlinked to each other.
Digital money can be stored on any smartphone
There are a lot of skilled people from across the world who want to get paid in cryptocurrency. There is over 38 percent of Web freelancers would be paid in cryptocurrencies, such as Bitcoin and Ethereum, instead of other ways. Blockchain-based Bitcoin came to better use at a time when Iran’s official inflation rate was over 36 percent.
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