Cryptocurrency is still a trending topic on the Internet, despite the recent dips of the values of various coins in the market. The silver lining of this recent market dive is the fact that the brunt of what makes the currency run—blockchain technology—has come to the forefront. Here are X reasons to consider learning more about how blockchain can benefit society by creating a safe space for financial transactions, which permeate just about every facet of people’s lives and behaviors to date.
1. The authenticity of transactions. Cryptography-backed coins ensure authenticity of transactions by involving all persons in a network and asking for their verifications to the transaction. This process promotes decentralization by having a massive, vetted network of people use blockchain technology to manage a database of transactions. Making transactions and managing them in this mass database, in this sense, will be as easy as a group of invited persons editing a document on Google Docs.
2. Blockchain algorithms help save money. Implementing blockchain in financial transactions eliminates the need for a middleman to give cues and permission for processing transactions. The middleman, that is, banks. Imagine a world where digital assets can be traded without banks’ consent beforehand.
3. Security and speed. Additionally, transactions using a Proof-of-Assignment consensus mechanism have increased security and speed. The Internet of Things employs the Internet as the giver of both information and verifier of new information. This protocol establishes security and prevents identity theft, simultaneously.
4. Currency that works around the world prevents identity theft because both parties need to verify that the transaction is supposed to happen. At the current state of affairs, security and speed are improving via more cryptic, unique codes and identification protocols. In the last decade, transfers of funds that once needed to be done in person have graduated to using ID codes between transferee and receiver for transfer verification. All this can be done on mobile apps like Zelle, Venmo and PayPal. E-commerce companies can thank blockchain for making this happen: establishing universal currency that doesn’t need to be accepted through third parties or a central authority figure.
5. Currency that works around the world and prevents identity theft because both parties need to verify that the transaction is valid. For example, transactions between two persons can only occur if there are enough funds to be handed and thus, this prevents someone from using more than exists in that account. A common venmo horror story that question the application’s safety and efficiency is that lack of verification required when receiving payments. There aren’t qualifying questions that ask the sender to verify the recipient or any questions that ask the recipient if they should be receiving the x amount of funds from the sender.
6. IoT devices can efficiently mine tokens. No need for hardware setup and maintenance costs that come along with the setups. The only maintenance cost is the electricity that runs the actual devices.
7. E-Wallets are accessible to anyone with a phone connected to the Internet. Equivalent to cash, tokens housed in e-wallets used for payments and transactions can extra secure because of the e-wallet’s protocol for identification and login. This serves as a solution for needing to constantly manually pay recurring payments and subscriptions; the security measures can ensure the transactions become safely automated.
Satoshi’s digital cash system can become a reality, incorporating bits and pieces of these seven factors and capabilities of blockchain.