A technology platform for the development of trusted networks, Blockchain is considered to be the most powerful yet most overlooked way of storing and processing electronic money. The blockchain is a ‘chain’ of digital information, data, and transactions that are stored in what is known as a distributed ledger which is accessed constantly by everyone connected to the network.
As a revolutionary development on the Internet backbone, Blockchain has the potential to change the way we do things, make better decisions, and most importantly, bring us closer together as a global community. As a result, Blockchain has become the focus of discussion among global leaders, economists, and technologists alike.
In this short article, we will take a look at how Blockchain is changing finance, and how it may impact you, your business, and your financial future. Specifically, we will take a look at the three primary areas where the Blockchain technology can have a positive impact on your personal finances:
How Blockchain is Changing Finance: The first area where the technology has the potential to impact your personal finances is with the fact that it can facilitate an auditable and traceable ledger of transactions, and this can help individuals and companies to trace where their money is, when they spend it, and how it is being spent. This will allow for greater transparency and accountability and will make it easier for an individual or company to control how their money is spent and where it is going.
How Blockchain is Changing Finance: Another area where the technology can impact your finances is the fact that it can allow users to build “smart contracts” with their transactions. For example, if you are a company that manufactures widgets and wants to process payments electronically, then a smart contract could be programmed into the transaction that would automatically deduct payment from a predefined digital balance whenever a payment is made. This would create a “virtual cash box”, a virtual account that would automatically be deducted when a payment was made to the user’s virtual bank account.
How Blockchain is Changing Finance: Finally, one of the most important areas where the technology can impact you personally is with the fact that it can allow you to take your bank account and “proof” it against the immutable public ledger, the blockchain. This means that you can show it, and everyone else, that you have assets that are backed by the real physical bank accounts that are backed by real physical assets.
By doing this, you show others that you have done your due diligence by establishing a physical bank account and using that physical bank account to prove your assets. While this would seem to only provide you with a benefit on paper, it would provide you with real value in your ability to prove that you own those assets in the real world.
So that is how Blockchain is changing finance. We look forward to seeing where this technology goes.