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Blockchain, Featured, Technology, World Economy

Role of Blockchain in Restoration of Failing Economies

Blockchain technology began as an infrastructure backing Bitcoin. But it has turned out to be a real game-changer. While bringing new applications and possibilities, now and then, it has garnered its share of hype. This leaves entrepreneurs and developers confused regarding the actual impact of technology on the economy. However, as per research, some of the problems solved by the blockchain include providing access to funds where banks fail.

The primary economic advantage blockchain offers is its digital and decentralized ledger system. Besides providing an accurate and transparent chain of records, it ensures data control and privacy to its users. The distributed ledger technology offers the needed, underlying trust and transparency.

The highly proficient technology of blockchain could facilitate the transformation of global economies. It is already disrupting the financial services industry because traditional services usually include a costly intermediary for verifying transactions. The advancements of this technology can empower societies in various ways. It’s needless to say that blockchain technology offers extensive services and inclusive solutions.

What can blockchain technology solve?

Blockchain is likely to play a role in 21 % of global economic affairs. Let’s dive into a list of economic problems that can be resolved using blockchain, at present and in the future.

  • Issues of trust and transparency
    Blockchain technology can help preserve every asset’s ownership and value. Security recording in a shared ledger blockchain renders it entirely mutable and transparent. Blockchain bars the corrupt practices that facilitated institutions to conceal their struggles. Hence security breaches will no longer be possible. It enhances capital flow transparency, thereby aiding to prevent prospective financial disasters.
  • Usual necessities
    Provided its relative ease of cross-border payments and transfers, cryptocurrency has turned out to be a viable option to an enhanced problematic regional fiat money for global citizens. Blockchain technology can be utilized to register and record property transactions, intellectual property, voting, and additional aspects of bureaucracy. Additionally, it could help enhance the government service distribution in various nations. Thereby, assisting to provide identity services and aid in enhancing freedom of anti-corruption activities and speech.
  • Real estate and property rights
    Accountability and transparency are the two significant issues in this sector. Records of people owning property or land are generally kept by the government. What if this is stolen, lost or someone cannot prove ownership? This is where blockchain comes into play. Because of its natural characteristics, it serves to be a useful tool for determining ownership. It can help replace the middlemen without requiring additional fees and assist in verifying the information.
  • Global trade and regulation
    Globalization refers to the impact of technology worldwide. Blockchain helps in making financial services convenient, affordable, and easier. Cross-border transaction charges can potentially divide a country’s population into those who cannot afford financial services and those who can. For example, throughout Africa, with different currencies and 54 countries, legalities, and exchange rates, it can prove to be something challenging for such transactions. Entrepreneurs in these regions can solve economic issues by leverage in blockchain as an economic medium. It turns out to be an affordable tool for people that do not discriminate between income bracket, occupation, ethnicity, and gender.

Wrapping Up

Blockchain technology may not solve everything in the financial market. However, with its decentralized system, it proves to be a better solution. Using blockchain technology can become immensely beneficial to leverage economies.

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