(Newswire.net — January 28, 2018) —
Since bitcoin was introduced in 2008 many predicted that cryptocurrencies may one day in the distant future replace our current monetary system and shake the world as we know it. No one, however, predicted it would occur only a few years later when the value of bitcoin skyrocketed making some smart investors millionaires overnight.
The success of bitcoin is just one of many stories amongst more than 1300 different cryptocurrencies that now exist in the world. The main story is not about cryptocurrency itself but about the digital wallet to store digital funds since the real power is not in the money itself but in the banking system.
Blokchain is precisely that, a digital wallet, a new banking system that doesn’t need to fund itself and can provide a service without charging transfer fees. It is unlike the present banking system where the world is connected through various accounts and we can follow the money trail by jumping from account to account because it needs to travel.
Blockchain represents a system where everything is connected with everything and this new technology is peer to peer meaning the money transfers only once – from one person who is buying to the other who is selling. No commission needed.
This raises lots of questions: What would happen to the banking system if everyone adopted the blockchain technology and cryptocurrencies? Is such a scenario even possible? Will the World Bank and the International Monetary Fund stand by as they become obsolete?
For now, it is obvious that something is changing and no one can predict the future. Well, except maybe those who claim that Blockchain would do to banks as the internet did to media.
The blockchain technology, however, is not only about banking systems but data security and transparency as well. The technology is built on a system that checks itself constantly and the same data is stored not in one place but scattered all over the internet and copied numerous times. That means that tampering is possible but fruitless. The system would easily recognize the data inconsistency and repair itself by copying old data over the new tampered one.
The transparency in monetary exchange is a whole new game but since it is hack resistant, the Internet security software companies might go extinct.
The blockchain’s transparency is a new way to manage trust. Insurance companies are based on the lack of trust and earn money as we are paying them to minimize or fully compensate risks. But if there is no risk, there is no need for insurance companies to secure it.
The blockchain’s transparency and peer to peer technology guarantees that our donations skip the middleman and go directly to the addresses we are sending it to. So, it would benefit only charities that we know exactly how much money they earn for themselves, and most customers would be OK with it.
The transparency and tampering resistance features of the blockchain technology lead us to possible voting systems that can be more precise than ever. Say goodbye to the idea that elections could be rigged, welcome democracy in its essence and in the way we never experienced it before.
Stating all the facts behind the blockchain technology, it is clear that the 21st century just received a milestone that will reshape the would just as the Internet did in the decades before, or Electricity before that, or the wheel if we want to go back in the beginning of the first civilization on Earth.
Of course, there are skeptics that believe that the blockchain technology will never reach its full potential because corporations and governments will not allow it. The truth is, however, that more countries are racing to be the first installing the transparency aspects in its democracy and it will definitely disrupt the world as we know it. Dubai, for example, vows to put all of its government documents on the Blockchain by 2020. Sweden, China and Russia already are developing their own cryptocurrencies on blockchain.
Although no one expects the largest beneficiaries of the “old system” to give up without a fight, the wind of change is inevitable.