Bitcoin is a polarizing topic, with unstable price fluctuations that inspire most people to invest. Although it is difficult to predict this cryptocurrency’s longevity, there is something more positive in the groundwork of digital currency – blockchain. Usually, blockchain and bitcoin are hot subjects to talk about, though blockchain technology is more of bitcoin and not tied as some individuals think. According to cryptocurrency professionals, such as Christian Ellul, bitcoin might succumb to the doomsday prophecy, but the blockchain is set for a prosperous and bright future in the following ways:
1. Ride Sharing
Blockchain has proven helpful to hold the potential to change the landscape of the ride-sharing economy. On one side, this technology’s applications have motivated people to commute using public transport and enjoy rewards in the form of tokens. The likes of Uber have also developed new options, which enable riders and drivers to set their rates, ultimately create a value-oriented market, and offer extra services, such as roadside assistance.
2. Children Protection
The DRC, the country ravaged by a prolonged and devastating war, is listed as one of the world’s poorest nations globally. Currently, the Bitcoin News report highlights a project that can help protect children against forced labor. This project will give global manufacturers and organizations of smartphones assurance that children did not my the cobalt used to make lithium-ion batteries. DRC holds many cobalt reserves, which may prove helpful to the struggling economy in the country.
3. Banked Countries
Almost a third of the world’s population cannot access basic banking services, which might help them in a financial crisis. People who are usually financially disadvantaged may resort to dangerous and doubtful lending practices. These practices’ interest rates may be fair, but they result in more instability to people who requested loans.
This is where blockchain comes in with ease of use and high volatility. Today, some programs and apps use blockchain technology to bring reliable lenders to a wider audience. The technology also allows people to trade freely across borders, leaving them more financially empowered, enabled, and connected.
4. Invincible Security
The hashing system makes blockchain a high-security technology because if a single transaction is changed, the hash signature for the same block will change. With this level of security, it means the technology will be open to the public.
Usually, the technology is maintained by a few decentralized entities regarded as nodes. The nodes’ job is to validate blocks, and when new transactions are created, they will validate new blocks by calculating their hash signatures. Every node compares the results of other nodes, and if the majority of these entities have validated the same signatures, the transaction will be considered valid.
Currently, blockchain is one of the hottest topics in fintech. Since its inception, technology has brought a big change to the finance world. Blockchain now allows people and companies to complete transactions without involving intermediaries, making it convenient, safe, and the future people have been waiting for.