The Financial System & Blockchain Technology: Could It Be the Solution?
Our current financial system serves tons of people every day, and moves multiple-trillions of dollars. While it may be our current system, it doesn’t mean it’s necessarily the best system. Not surprisingly, its wrought with issues. These issues include, but certainly aren’t limited to
- Super-high transaction fees
- Delays in transactions
- Cumbersome paperwork
In all honesty, the system is downright broken and archaic. Plus, it’s very vulnerable to issues regarding cyber attacks. Solely centralized platforms exist for financial systems. Centralized platforms require data to pass through a single point, thus providing an easy target for hackers. Quite frankly, the current financial system fails at even its most basic task: providing people with basic financial information and tools.
Why Blockchain Is so Groundbreaking
Cryptocurrency–specifically Bitcoin– originally housed the code for blockchain. Bitcoin was actually the original vehicle for blockchain technology. In fact, Bitcoin’s original code contained the basis for blockchain–their past is absolutely undeniable. Given the nature of the technology, blockchain is a distributed ledger that inherently cannot be changed once it’s been recorded. (For more in-depth information, read our guide to blockchain). No specific entity, government, or source backs blockchain. Instead, it relies on a slew of things, in order to reinstate power back into the hands of users.
However, for users to regain this power, they must operate on a peer-to-peer, or decentralized network. Blockchain technology has many layers, with both businesses and individuals dictating the way the technology develops. There is not a single blockchain, so it’s important to specify which specific blockchain you’re referring to, when discussing the topic. Various blockchains include:
- …and many more
Take a closer look at our current financial system, and see how much it can really benefit from the use of blockchain technology!