As cryptocurrency becomes more popular and widely understood, its applications are evolving every day. Despite still being a relative newcomer to the financial sector, the flexibility and advanced technology of cryptocurrency means that it is well-placed to make some positive changes in the world. By revolutionising the way in which we do business, store money and pay for goods and services, cryptocurrencies are demonstrating that there is a different way of doing things and that we just need to start thinking outside of the box.
Originally just thought of as a way of changing the finance industry, crypto and blockchain technology are now being considered when it comes to solving specific problems in certain industries. This is big news, as it could finally result in the technology hitting the mainstream. So, what are the ways in which cryptocurrency can change the world?
Cutting out the middle man
The current process we use to transfer money can be time-consuming and involve lots of transaction fees. Whether you’re transferring by wire, bank or online services, the processes are all subject to checks and procedures that can delay when the money is received. This can, in turn, create delays in paying for goods and services, which results in delays in receiving them. Transferring cryptocurrency is a different ball game, however. Whether it’s a national or international transfer, cryptocurrency transfers do not require the same checks and procedures before the funds can be deposited. They are instant and are easily tracked and securely stored in the blockchain.
Reduce corruption
While many companies and industries adhere to strict guidelines, there are always going to be some who break the rules. This can make it tricky for consumers to know who to trust when it comes to commerce and business. It’s not as easy as taking a company’s word for it that they will behave appropriately and provide the best service possible. However, blockchain technology provides means for companies and businesses to be held accountable for their actions. Due to the tracking technology, transactions are easily pursued through the system, making it extremely difficult for businesses to hide behind corrupt and fraudulent practices.
Photo by David McBee. Could cryptocurrency help to solve global issues?
Technological progression
Artificial Intelligence is already making its mark in the financial sector, particularly when it comes to cryptocurrency. With AI, cryptocurrency exchanges will be safe, secure, logical, transparent, and without risk. The fact that machines are logical and able to make decisions without emotion guarantees a precise outcome. This is why computer-driven systems such as Libratus are making waves. Not only can the system beat some of the world’s best poker players, but it has been discovered that the algorithms of the program could also be applied to improving global issues. As PokerStars team player and astrophysicist Liv Boeree says, “Like you can apply science to poker, you can apply science to fixing the world’s problems.”
Taking back control
One of the biggest appeals of cryptocurrency is the ability for people to take back control of their money. In the event of an economic crisis, having all of your money in a bank account may not be the best option. But, it’s also not a good idea to store all of your cash under your bed! So, the best alternative is to use cryptocurrency. Blockchain technology allows people to have control over their own money, without the use of banks and financial institutions. It is not subject to the same rules and restrictions that are imposed by banks, which means that the user has much greater control over it.
Boost crowdfunding
Crowdfunding is a huge gamer changer for business as it allows entrepreneurs to raise funds for their ideas without the use of banks. Investors are able to directly invest in projects and ideas that appeal to them, and businesses are able to receive the money instantly. Initial Coin Offerings (ICOs) are now the lead crowdfunding method for technology start-ups. Instead of spending months pitching ideas to investors, when developers come up with a tangible idea, it is tokenized and sold to the public directly. This means that projects that would normally spend years being forgotten about in the development stage are now being actively developed and propelled forward.
As cryptocurrencies continue to experience growth, their features become more appealing to those in business. This, in turn, is generating a wave of disruption throughout the financial sector from which we may feel the effects for many years to come!
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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
