There have been many attempts to create digital money in the past, but they have always failed.
The prevailing issue is trust. If someone creates a new currency called the X dollar, how can we trust that they won’t give themselves a million X dollars, or steal your X dollars for themselves?
The blockchain solution is of great importance to many industries and sectors. So here are some features that make this technology so important:
Blockchain is important because it is a transparent technology. There are different types of blockchain networks and protocols. Public blockchain provides transparency due to its nature. This type of blockchain is very useful for improving many aspects of our current society, including, conducting electronic elections. Businesses and organizations can also use this technology to improve the user experience and ensure that they can interact with different processes, such as transparency and full control or partial control.
One of the fundamental rights of human beings is freedom. There are central organizations that offer connectivity in terms of economics and finance, but they also take away the customer’s freedom. Take traditional banks for example. The bank can block your monetary transactions, financial transactions, or confiscate the funds in your account if they see fit. There are banks and financial services that do this – even when customers do nothing wrong. Therefore, blockchain eliminates central authorities.
Using blockchain technology, you will be in control of your true digital freedom. You keep your own records, so you are your own bank and have more financial privacy. You can send and withdraw your own money whenever you want and without anyone’s permission. Since you don’t need any central authority, you are the sole owner and responsible for asset management.
Blockchain technology is not just limited to the finance sector. This makes the technology excellent for the future of our society. Blockchain can be used in almost every sector and market, including commercial finance, banking, government, healthcare, education, and so on. These sectors are what make our society function.
Blockchain uses state-of-the-art encryption technology to add a layer of security to the records and data stored on the network. In addition to cryptography, the decentralization feature makes this technology support better security than other traditional systems or databases. The cryptography of the blockchain uses complex mathematical algorithms that when combined with the proof-of-work (PoW) mechanism can protect the data and systems on the blockchain network.
Blockchain technology is much cheaper when compared to other technologies and systems. Being a decentralized technology, there is no need to pay for intermediaries, which improves operational cost efficiency.
Using blockchain in the supply chain means less paperwork and documents. The documents and paperwork themselves cost a lot of money. There are other associated costs, including lawyers’ fees, fees and emoluments, and other costs with organizations.