Like the name Blockchain suggests, it is an immutable, “unhackable” and indelible way to store information. Information is created and new or additional information is added to it without any change in such a way that it creates a chain. A blockchain is a digital ledger of transactions that is copied and shared across the entire network of computer systems on the Blockchain. Blockchain is managed by participants known as Distributed Ledger Technology (DLT). Once a new transaction is made in Blockchain, that record is added to the ledger of every participant. Blockchain is very secure as it cannot be tampered with (any change made affects the whole Blockchain) as it is written with a signature called hash.
The most popular blockchain is the Bitcoin one. As at today, we have a wide variety of Blockchains and this number promises to continue to grow. You may wonder what makes the technology so special. The beauty of the Blockchain technology lies in the fact that no one is in charge. In a regular financial system, there exists a system (like banks, financial agents, regulators etc.) that control money and its related processes. In Blockchain, there is nobody in charge. The process is designed in such a way that users run it themselves without any help or interference and it is highly trusted because cryptocurrencies cannot be hacked, faked or double spent.
Cryptocurrency is becoming widely accepted and if acceptance continues at this rate, by 2025 the Blockchain technology would have a strong impact on global economy. Cryptocurrency has started to infiltrate the traditional financial system, opening the eyes of people to a better option and the advantages of digital money. They are easy to use, do not need middle men or financial agents to be operated and are totally safe and free to use.
The Blockchain technology/cryptocurrency can help bring about global economic growth especially in developing nations by providing access to capital and financial services. Cryptocurrency can reach more people because it is operated from computer programs and mobile apps. Users do not need to go anywhere to perform transactions and can perform multiple transactions with no limit at any place and time. The Blockchain technology is totally decentralized and therefore do not face barriers like location, language for even the difference in currencies faced by the traditional financial system. The technology is, therefore, a great opportunity for poorly banked/developing nations to finally be connected financially and truly empowered.
The costs associated with cryptocurrency is very minimal. This is as a result of its freedom from physical buildings and cumbersome processes the traditional financial system faces. Minimal transactional costs will encourage more people to use it causing it to grow. International trade would experience a turnaround as it will finally be rid of the irksome processes called payment system that it is used to. This growth would bring about a beneficial increase in economic activities which in turn translates to economic growth and development. Cryptocurrency gives users more power over their finances and it will only take little time for it to find its way into our day-to-day life activities. Cryptocurrency are completely transparent and with time, more people and institutions would embrace the Blockchain technology, use it to save, transact and invest. By 2025, the Blockchain technology would have had its roots in every financial outlet and would be a key driver to global economy. Blockchain has the power to create more opportunities for people, make sure that investments are safe and connect the world making it a true global village.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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