BLOCKCHAIN technology is sweeping across industries and players in virtually every sector have witnessed the disruption. In the financial sector, the unbanked demographic is among populations directly and substantially targeted by this technology, while early adopters willing to risk have a chance to stake their fortunes. In fact, some have reaped enough to last them a lifetime by trading in products such as Bitcoin.
As this happens, there is, observably, one fundamental aspect that all blockchain products aim to achieve: merging technology and money management using a peer-to-peer approach. In other words, using the tech to benefit all parties involved, thus creating a more stable and balanced economy while opening up a previously enclosed and almost “insiders-only” industry.
Decentralization as the first step to economic stability
Admittedly, blockchain technology is causing a major reorganization of the traditional financial structures. With just a little knowledge and skills in computing, it has become possible to trade on these Internet-based products in real time from anywhere in the world. Some deeper understanding and technical know-how might be necessary (for procedures such as “mining”) but blockchain has brought to the world possibilities hitherto unknown and unimagined by mankind.
Think of a person in the rice fields of India with an Internet-enabled smartphone being able to invest in a blockchain product. That is a whole paradigm shift, yet, in reality, it is happening.
One major appeal of cryptocurrency is that it does not depend on one authority like say the Federal Reserve or the Central Bank of “A” or “B” for policy formulation and/or regulation. Its rates are completely market dependent, assuring the stability of each cryptocurrency. Its performance is primarily in the hands of adopters/traders rather than a group of boardroom policymakers. The result? More economic stability.
Adoption of Blockchain Technology: Practical cases
That blockchain will influence the future of the finance industry is indisputable. In realization of this, governments and organizations — large and small — are joining, adopting and developing cryptocurrencies thus influencing the direction of various economies.
Estonia, a nation known for its ease in tech adoption is at an advanced stage of developing Estcoin, a cryptocurrency token aimed at enhancing its e-residency platform. The platform is used to register and regulate businesses in this small European nation. But how will this affect the nation’s economy given that the official currency is the Euro?
Kaspar Korjus, managing director of the e-residency platform offered a lengthy insight saying that instead of being critical of cryptocurrencies, governments should consider the tech’s impact and try to have them used as currencies because “they provide a more efficient means for exchanging value globally.”
This approach affirms the fact that it’s just a matter of time before cryptocurrencies influence the conventional economy.
Elsewhere, Dubai is aiming at having all government services delivered through blockchain technology by the year 2020. Where does that leave the Dirham, the emirate’s official currency? Well, only time will tell how and at what point this two sync. This notwithstanding, it alludes to the fact that economic shifts will be experienced through blockchain tech.
Blockchain is usable across board. Blockchain products tailored to the needs of a specific industry have already been adopted. In the health industry, for example, cryptocurrency has already made an impressive impact.
Dentacoin (DCN) has become a means of payment for dental services at clinics from 13 different countries in the world. The Dentacoin platform, consisting of various smart software applications with the DCN cryptocurrency embedded within all of them, is being used by over 35,000 users (dentists, patients, supporters).
Among the early adopters of DCN are also Bredent, a leading German manufacturer of dental implants through its supplier Dentamed. By implementing Dentacoin as the only available currency in its online shop, the company has utilized numerous benefits, such as a simplified, highly automated and secure payment system and significant cost savings in transactions and logistics.
Bitcoin, Estcoin, Dentacoin are just examples of how crypto products continue to change the way not only financial markets, but also other industries, operate and behave. Will Blockchain (de)stabilize the entire business environment? The fast adoption pace of this technology suggests that we might learn the answer to this question sooner than expected. — SG