How Blockchain Technology Will Change Economy With Trust

In the history of mankind, wars have been fought, life and standard of living have been subject to devaluation, and adequate communication amongst peers, be it friends or governmental, have been all but nonexistent or feared as illegitimate due to a lot of factors, a major one being lack of trust amongst the parties involved. In comes blockchain technology, which is basically a medium of proof of transparency between parties without the rigidity of a centralized system. It is a chain of modification resistant data in an open ledger that records transactions between two parties both efficiently and in a verifiable and permanent way.

The aim of technology has always been to make human life easier whilst remaining efficient. Blockchain technology is capable of doing just that. It fosters ease of transactions between peers because blockchain technology as mentioned is also a distributed ledger with all parties sharing the same documentation as opposed to different individual copies.

blockchain trust. pixabay images
Blockchain trust. compiled Images by mmi9 and bertholdbrodersen from Pixabay

This allows for efficient and speedy transactions as there is no need for third-party mediation to give guarantees which also means their cost is cut out. Also, human error is greatly reduced if not totally eradicated. All these considered, it makes life a lot easier when engaging in both business and day to day transactions because of the transparency that fosters trust.

Blockchain technology is further beneficial in the area of cryptocurrency that is used in transactions as legal tender. With this, people around the world are free from constant dependence on banks, national currency, and other centralized systems. This fosters a “sharing economy just like open Bazaar on eBay.

This puts the cryptocurrency in a prime position to replace paper money, allowing the value of legal tender around the world to remain the same. There would not be any fear of devaluation in the currency as seen in most developing countries. Blockchain technology would guarantee the security of value and transaction in the global financial system, thereby bringing a balance to the economy and probably help reduce or totally prevent economic depression.

The phrase coined by Marshall McLuhan that states “the world is a global village” could not be more true. Blockchain technology will only improve the interconnectivity around the world as communication of all kinds would be accountable, authenticated and privacy would be all but guaranteed.

Its application in bank use for safe transactions, healthcare to store patient records that allow ease of travel and treatment anywhere certainly makes a good argument for this. Also, its use in property record as proof of ownership and ease of property transfer can be facilitated by blockchain, smart contracts to verify negotiated contract agreements, and best of all, in governance through voting, as it helps to eliminate election fraud which is paramount for a world moving towards democracy.

Blockchain ensures everyone has a voice that is secure and recognized because trust has been ensured. Also, It would encourage scientific advancement as information is available without roadblocks whilst remaining accountable. All the points mentioned above lead to making the world more of a global village primed to better itself.

Some may contend that blockchain technology would face political challenges in the form of its ousting of the central banks, regulatory challenges because of its prospect for illegal activities and its susceptibility to being hacked as a digital entity; the cost to set up and current speed inefficiency can also be cited as possible financial and structural challenges.

In response, consider that blockchain technology is still in its infancy and has a lot of room for growth, just like the internet as a whole did when it started. So it is safe to say that blockchain technology is revolutionary and has a lot of potential to change society and bring positive change to humanity as a whole.

Arslan Riaz is a business writer, who loves technology and the way it affects every part of our existence, everywhere around the world. He started writing about tech a decade ago, and is passionate about a wide range of topics including science, technology, finance, health, insurance, entertainment, politics, sports, property, and pretty much everything under the sun! Other than writing, he has worked in I.T. across several industries, including banking, retail, and software.