The tech world has been blessed with the most revolutionary piece of tech called the blockchain in the past decade. The blockchain industry has since then grown into a multi-billion dollar industry that has influenced many other industries like gambling, gaming, aviation, agriculture, sports, fashion and many more.
The decentralized, anonymous and secure nature of blockchain technology makes it most attractive for any digital project. Not only is it secure and decentralized, but the blockchain also records and stores information and data in a public ledger which can be accessed by anyone on the network, giving room for transparency.
As blockchain technology gains more traction in the world, different sectors are beginning to incorporate this technology for greater productivity.
Remember that the inception of this technology also triggered a revolution in the digital finance world, because the first blockchain was the Bitcoin blockchain which launched the first cryptocurrency.
It is then safe to say that blockchain technology and cryptocurrencies are intertwined and have a great impact on our digital economy since other sectors earlier mentioned make up our digital economy.
This technological revolution cuts across all aspects of the digital economy and cryptocurrencies are utilized in trading digital goods anf services.
Does blockchain technology have any impact on the digital economy?
How does blockchain technology impact the digital economy?
Impact Of Blockchain And Cryptocurrencies On The Digital Economy
The concept of cryptocurrency is quite controversial among folks who do not truly understand it.
One of the many questions lingering around blockchain and cryptocurrencies is “what is the impact of blockchain and cryptocurrencies?”. However, one cannot understand how cryptocurrencies impact our digital economy without understanding how it affects the financial system on which it was originally utilized.
Understanding the effect of cryptocurrencies on the financial sector is a yardstick to measure the extent of the impact it may have on the general economy.
Here are some ways blockchain and cryptocurrencies affect our digital economy.
1. Financial Technology Modification :
When you talk about how cryptocurrency can change the world, you are invariably talking about the change that comes with the blockchain era.
The blockchain industry has grown into a multi-billion dollar industry as many professionals had anticipated.
One can boldly assume that the blockchain era in cryptocurrencies will influence the financial system given how international transactions amongst financial institutions have been enabled through blockchain.
The impact of cryptocurrency on the general economy also extends to adopting blockchain in keeping accurate and credible financial transactions.
With blockchain technology, many methods like executing clever contracts through cloud computing, and vehicle leasing are simplified. Also, this blockchain era ushered in the possibility of making cryptocurrency payments to employees by businesses like Kodak.
2. Improved Financial Stability:
People are slowly losing confidence and trust in traditional economic institutions like banks over the years.
With the advent of blockchain and cryptocurrency, people have discovered a new system which offers them total control over their finance and also paves way for financial inclusion. You can freely enter into any financial services without any problems or any banks interfering in between.
Blockchain technology and cryptocurrencies have offered people the power and opportunity to transact in a more stable financial market without the involvement of any third party, hence, bringing the whole economy to equilibrium.
With blockchain and cryptocurrency applications, some economic nations whose domestic currencies are constantly underperforming can be easily stimulated. Since cryptocurrencies are used to hedge inflation, they can be useful in addressing situations where there are high fluctuations in the value of the home currency.
Additionally, cryptocurrency is anticipated as the future of international financial infrastructure which will offer users some financial services in the absence of any central body’s surveillance.
More than two billion people in the world today have lost access to a financial institution account which further preserves them from the benefits of economic subsidies.
3. Job Opportunities:
It is too obvious to deny the brand new labour market created solely by the blockchain and cryptocurrency industry. This is a major answer to the question of ” how blockchain and cryptocurrency can impact the world,”
The general acceptability and recognition of cryptocurrencies have masterminded a huge demand for crypto professionals and experts around the world.
There are large solutions, participants and exchanges in many international crypto industries which demands the management of humans.
Therefore, with the enormousness of this industry and the increasing adoption of cryptocurrencies, the technology creates room for many more new job opportunities in the world which can strengthen the global economy.
Many companies are regularly creating more room for the demand in crypto-related task roles given the heightened blast in crypto activity listings.
According to Linkedin, blockchain and crypto experts are one of the highly demanded labours sought by employers.
4. Transparency:
The final impact of blockchain and cryptocurrency on the digital financial system on this list is transparency.
All known financial structures in the world have loopholes which enable money laundering and other monetary crimes.
Therefore, sophisticated blockchain technology provides an avenue for a clean audit, transparent monitoring of transactions and recording and storing data of all transactions can help curb the menace.
Governments, through law enforcement agencies like the FBI and IRS, can easily track these illicit monetary crimes perpetrated by criminals using cryptocurrencies because every transaction is publicly recorded on the blockchain.
Malicious entities can easily manipulate and compromise transactions and data in centralized structures, making it more dangerous than the decentralized system run on the blockchain network. To avoid this kind of trouble, then you’d need to operate on machines that can track monetary transactions at a refined level.
Conclusion
Blockchain technology and cryptocurrencies have changed the world tremendously over the past ten years and contrary to some early predictions, cryptocurrencies continue to gather massive support and adoption throughout the earth.
We can’t deny the level of serenity and the decentralized power this technology has given users over their assets, unlike traditional financial institutions.
Additionally, blockchain technology has brought transparency, job opportunities, financial stability and an advanced financial technological modification to our global digital economy.
