How crypto and blockchain can change the world? The cryptocurrencies may not have widespread adoption as of now but it has already shown its potential to change the traditional financial system as well as several other different fields.
It may eventually change the world and most people believe that it has already started the process and has been quite successful in that matter.
If you do not know how and where exactly, this is an article which will help you to know those areas in which the effects of crypto are mostly experienced.
Crypto seems to be everywhere from the auction centers selling digital art forms to the balance sheets in the boardrooms proving that it has more or less reached mainstream.
There are a few countries where crypto is adopted and accepted as a legal tender such as in El Salvador.
The speed at which crypto is changing the global culture is really amazing.
This raises another significant question which is, if the world really moves towards decentralized banking what would the global economy look like.
This is what this article will help you with.
How Can Crypto and Blockchain Change the World?
The world of crypto is very exciting and people who are engaged in trading with and investing in crypto are often lost in this volatile crypto market spending most of their time speculating on the ups and downs in the prices of different crypto coins.
There are thousands of different cryptocurrencies available for sale on hundreds of different crypto exchanges and people are looking for the best time to get their hands on it.
Amidst all these, there is one thing that is constant of this new digital asset class that relies heavily on the blockchain technology which is – the wild world of crypto is changing the real world and the society at the macro-level.
It does not really matter whether or not crypto relies heavily on tech.
It comes with its own characteristics, features and attributes that enable it to cause a seismic shift in the world and the society.
If you look deeper into it, you will also come to know what exactly you can expect from the world when it becomes fully influenced, if not controlled, by crypto.
More specifically, you may even start to worry realizing the fact that crypto is no longer in the hands or in the wallets of the traders and investors exclusively. It has already reached the masses.
Now the question is what does this mean to the masses. Well, there is no specific answer in general to this question.
It may differ from one person to another and therefore depends entirely on who you ask the question to.
As for the decision makers, they may say that the same thing that happened to El Salvador when they adopted crypto as their legal tender in September 2021 will happen to the rest of the world as well.
As for the common citizens, such a transformation will be life changing.
Just as the Salvadorans, the common people will now have a newfound opening to provide their support to their far-flung families and those in business will find a new and perhaps a more productive way to expand their existing customer base.
All they need for enjoying such pleasures is:
- A smartphone
- A Wi-Fi connection and
- A crypto wallet.
They will not have to rely on the physical banks for transferring funds across regions within and beyond the borders and go through the tedious process or the whims of an intermediary any more.
However, not all people think on the same lines.
There are quite a few people, and all of them are not crypto experts or market critics mind you, who are worried about the transparency and oversight.
Nevertheless, governments of different countries are reacting differently to crypto and its prospects.
Few are quick to adopt it as a legal tender in their country like El Salvador while few are banning all types of crypto activities in their country like China.
Others, like the USA, are cautious and playing the wait-and-watch game keeping their citizens and the entire world speculating.
On the other hand, countries like Russia, Kazakhstan, and others are proving to be crypto-friendly.
Even the celebrities, sportspersons, business tycoons, and other prominent people of the society are getting involved in the world of crypto either directly or indirectly.
It seems that crypto has already mingled with culture and business.
A lot of businesses have started accepting crypto coins as a mode of payments and a lot of celebs have become visionaries and are endorsing products in the NFT marketplace.
One particular segment that you surely did not miss to notice the influence of crypto in the world is the football world.
You must have seen a large number of companies dealing with crypto are advertising on the jerseys.
A few have even become partners of several football clubs.
The most striking example is the star forward of the Paris Saint Germain Football Club Lionel Messi whose payment contract includes crypto companies among others.
Therefore, the inference that you can make from all this is that crypto already has an exclusive take on the global economy because crypto is much more than just a currency.
World of Finance
The financial world is the one where crypto and blockchain technology has had tremendous effects.
The world of finance has been long controlled and governed by the traditional banks.
These banks were responsible for providing currency, credit, and the necessary security to facilitate any economic transactions.
However, their control was weakened when blockchain allowed people to transfer funds without the need of a bank to others directly in 2009 and henceforth.
The historic control and dominance of the traditional banks were reduced by the historic attempt of blockchain which operated through private and protected networks.
Traditionally speaking, every participant of a financial transaction needs to have their own system for maintaining the records, which is mainly a paper ledger.
For example, in property dealing, a particular financial transaction is needed to be maintained by a lot of people at the same time such as:
- The owner or seller of the property
- The auctioneer
- The buyer
- The mortgage company and
- The bank.
This means a lot of paper ledger and paperwork and is a cumbersome and a long-drawn process.
Moreover, in spite of the fact that all of these parties are connected to a specific transaction all of them will have a version of the truth.
This version of truth can be the same for all, partially same or entirely different from one party to another.
This makes the old system open to errors along with the fact that every validation, verification and legal checks are typically done by humans which makes it open to fraud as well.
It largely depends on the ethics of the individuals involved in the transaction. And, since everything is done on paper, delays are inevitable.
With the use of blockchain technology, chances of errors, frauds, and delays are reduced and the complexities in such transactions are removed.
This increases the efficiency which is all due to the distributed electronic ledger.
All the entries in this electronic ledger are recorded only after proper authentication and verification, a process called mining wherein all users or participants must agree to a transaction based on the predetermined and agreed rules.
It is only then a transaction record is added to the blockchain and, once done, it cannot be tampered with by any one and is available and accessible to anyone to see.
Blockchain and crypto have reduced the risk of fraud significantly which is one of the biggest concerns for anything related to money whether it is transferring money or using a credit card for online purchases.
The fact that there are no cash funds or banks involved and everything is done securely and electronically on the blockchain gives additional peace of mind to the users.
All these are based on crypto that provides the companies a good source to raise the desired capital for their business.
Inflation can cause shocking results due to the instability in the economy and switching to crypto may prove to be extremely useful.
This is because crypto now is not only accepted in most countries in the world but is also free from interest and exchange rate fluctuations proving a good alternative currency especially in the countries that are economically volatile.
World of Commercial Real Estate
Crypto has transformed the world of finance significantly but it has also affected almost every industry type of this world today.
However, the commercial real estate market and industry seems to be the one that can be transformed entirely by the use of blockchain technology which is gaining popularity at a rapid pace.
Market experts believe that in the following five years, the commercial real estate industry will have a completely different look as compared to that of today.
This is because the innovations driven by blockchain offer possibilities that seem to be endless.
First of all, there will be no need for any third parties or escrow companies any longer to complete a deal which has been the defining feature of this industry since ancient times to protect the parties involved in a transaction.
All payments and documents will be handled and transferred will be done on blockchain which will make real estate transactions faster and cheaper.
Secondly, transactions are recorded right away and the identical, immutable, digital documents can be accessible by anyone who needs them because it runs on a P2P network.
This means that each and every person involved in a particular transaction will be kept updated in real time and follow the development of the transaction from any place in the world.
Once again, this will expedite the entire process.
Thirdly, instant transactions will help the frequent travelers in the real estate industry to monitor their investment properties and for that they do not even need to be present physically which will speed up things significantly.
And, the additional security of the system will allow them to transfer funds and sign on contracts digitally from any part of the world.
Thirdly, there will be no secrecy in the industry anymore because all crypto transactions will be public even if payments are made in crypto coins.
This is because public transaction is a standard in cryptocurrency though a few coins do allow making private transactions which requires opting in and costs more.
This means that everyone will have a much better understanding of what is happening in the world of commercial real estate.
Everyone involved in the real estate industry will also be well informed about the trends followed in the industry.
This will help in making better decisions. This is an extremely helpful feature for those who have just started their career in the commercial real estate industry.
These entrepreneurs can come to know about the ins and outs of the industry by following the trends simply.
The industry will see more micro-investing because it will be made much easier than before.
There will be a much lower entry barrier which will allow several people to invest a sum on a specific project. Crypto will lower the cost of transferring funds which will result in a higher return on investment.
Due to the features of blockchain technology, the real estate investors will have a complete peace of mind.
They need to make a 51% attack to gain access to crypto funds.
This means that the funds as well as the sensitive information will be completely secured on the blockchain.
It will also promote international investing because it will be cheaper, quicker, and easier.
International transactions are always expensive and often take days to complete a fund transfer if a large amount of cash is not paid to expedite the process.
Banks are closed on weekends which slow down the process even further.
Projects cannot be started on time and, for any business, time is money. Crypto allows making instant international transactions from anywhere in the world.
The risks of currency exchange rates influencing the decisions of the international investors regarding commercial real estate acquisitions will be minimized when both parties involved in a deal use cryptocurrency.
This feature allows the investors from a country with low-value currency to enter markets in a country with high-value currency and gives the chance to deal with another currency.
This will brighten their chances of making more profits.
Finally, blockchain technology will make the real estate market much more organized making it easier for people to buy a house.
The process will be less tedious and will be completed fast with less paperwork, less lawyer fees, faster verifications, more trust, and better coordination.
World of Science
Crypto also persuades scientific advancements by keeping the data and information secured and secret.
This is a significant benefit for the institutions and governments over the world who are especially engaged in continual and collective scientific research.
The roadblocks to accessing the required data and info in real time are effectively removed by blockchain technology that offers the opportunity to all to access data easily from any part in the world.
This prevents any particular institution, corporation, foundation, or government from sitting on important information.
A crypto asset can be used to share data and resources as well as collect molecular data from different scientists around the globe that will help in making further advancements.
Who knows, such possibilities may help the scientists to find a cure for cancer or a pandemic and even beat the superbugs.
Individuals and Companies
Crypto will ensure that both the companies as well as the individuals connected with them are accountable to ensure better results and functioning, reducing the chances of corruption or illegal practices.
Though companies write several things about business ethics and performance on paper, relying on them will mean taking integrity lying down since it can be far from actual practice.
Blockchain technology, on the other hand, will ensure that the necessary laws are followed and the rights of all the consumers are upheld.
As for the consumers, they will know more about the company and determine whether or not to trust them.
Crypto and blockchain technology together will make ecommerce much better, safer and stronger, all of which are absolutely necessary to make online purchases.
It will trim down the risk of fraud and fraudulent shoppers which will benefit both the vendors as well as the sellers.
Most importantly, it will allow the companies to extend their business and even operate on a global scale.
Crypto will offer people more control over their money they have saved because the control will be now in the hands of the people rather than in the hands of the traditional banks and financial organizations.
It is good because crypto is free from the rules and regulations common to the traditional banks.
This will surely make the world a better place.
Crypto and blockchain will offer the companies a lot of opportunity to scale their business higher with crypto and blockchain.
This is because scalability will not be an issue anymore as it is found in the customized platforms and programs built for specific companies.
World of Healthcare
Blockchain technology will make it easier for the doctors to treat health problems because the medical history of a patient will be easily available to the doctor or the team of doctors along with all others related with the treatment process.
This will ensure that the specific treatment is provided effectively and, most importantly, quickly.
As you may know that the medical history of patients helps the doctors a lot in treating an ailment, chances are that this is fragmented and recorded across a number of healthcare providers.
One of them may need the record of the other at a particular point of time for treatment purposes.
Transferring of this record will be slow due to incompatibilities between the systems of service providers and it will need manual intervention more often than not.
There are lots of cases when a doctor needs the entire medical history of a patient undergoing a specific treatment for a long period.
And, without the full medical history available, doctors may not be able to provide the best treatment and may suggest tests that may not be required.
This will be a waste of money for the patient and time for the doctors.
With the use of blockchain technology, such incidents can be avoided and it will make it quite easier to treat health issues by improving the accuracy in treatment radically.
This will be facilitated due to easy availability of the entire medical report that is accessible by all on the blockchain.
This permanent or immutable record can be viewed by the doctors concerned to know about the ailment, lifestyle and allergies of the patients anytime they want and make the right diagnosis to treat a patient.
Add to that, such records will also verify the identity of the patient so that there is no confusion even if two patients have the same name.
Combining blockchain technology with Artificial Intelligence specific platforms can be created to match the genotype and phenotype of patients and design a relevant clinical trial based on that.
This will produce marvelous results since the most suitable treatment will be provided to the patients who offer all their genetic data always and every time.
In such situations, the patient may also get relevant information such as he or she has been diagnosed with a particular type of ailment and there are a few specific clinical trials suitable for it along with the criteria for inclusion or exclusions of them.
It will also allow the patients to know what exactly the condition of their disease is.
Blockchain can also be used to trace human and animal drugs or to reduce use of antibiotics and even for providing records for any second-hand sales and services to any high-value machinery.
There are also several other ways apart from those mentioned above in which crypto and blockchain technology will affect and even change the ways things are done in this world today.
Send money abroad:
For example, crypto will enable you to send money abroad much quickly and safely without needing to go through the complicated process of the traditional banks or need to pay heavy commissions to the intermediary.
This will take away the frustration of having to wait for days for a transaction to be completed and your friends and family members kept waiting for an equally long period to get their basic necessities.
They can think of an emergency medical treatment now knowing that the money will reach their account in no time if needed.
As of now, you may know that the traditional banks hold foreign money in nostro/vostro accounts in other countries.
In order to arrange for fund transfers they typically use the SWIFT messaging system.
If there is a formal agreement between the two banks then such fund transfers can be completed within the same business day.
But unfortunately that is not the case especially in the developing countries.
In these countries where currencies, especially foreign currencies, are controlled strictly, the banks need to go through liquidity agents or use intermediaries to make a fund transfer.
This is labor intensive, time consuming and more expensive.
Blockchain solutions can reduce all these three significantly while sending money abroad because both the participating banks will be connected through the blockchain network.
The process will be faster because all ID checks and compliance requirements will be met satisfactorily.
Everything will be authenticated automatically by cryptographic signatures and once it is cleared, funds can be transferred within seconds.
The record of such transactions will be stored in the blockchain network for both the banks to see, making it a more transparent process.
And, since the records are immutable, it is safe as well.
Verify genuineness of products:
Blockchain has helped the supply chain business a great deal and has also helped the consumers equally to know whether the product they wish to buy is genuine or not.
They can track the source of the product for a proof of authenticity.
Whether it is a diamond ring or a prescription drug, a ticket to a concert or a home appliance, with blockchain technology support, chances of fraud is minimized significantly.
This was not possible before when supply chain management was done through EDI or Electronic Data Interchange messaging system.
This was a 2-way system that left other intermediaries out of the loop.
Therefore, if the two end parties indulged in fraud, the others would not know.
With blockchain, every stage of the journey of the product is well recorded and available for the stakeholders and general public to see.
Therefore, there is no scope for falsifying information or cutting corners which will eliminate disputes and confusions among buyers and sellers assuring both that it is a real deal.
You can earn more money and make more profits from those things that you do not use such as your car, or an apartment or any other connected smart item.
Since there is no intermediary in the decentralized blockchain network you will not need to share the platform with anyone else.
There will be no tech giants as well to set the rules of the deal and nibble away a considerable part of your profit.
Think of Uber and Airbnb. They do not rent cars or properties or anything.
They simply connect people on two ends and generate income by charging huge sums for their services offered.
Such is the magic of the shared economy and blockchain technology.
Crypto has also transformed the cultural world because the blockchain technology has altered the concept of ownership.
It has also changed the concept of gaming because players can now earn crypto coins as the in-game currency.
Blockchain can also be applied as an anti-fraud mechanism not only in the financial sector but also into other sectors.
For example, it can be used to validate an organic food and vegetables as well as its components.
Addition of relevant documents on the blockchain will ensure that a particular vegetable is grown organically.
It will result in better compliance because only those people and companies will be rewarded who abide by the set rules.
For example, the documents and receipts of a charitable organization included in the blockchain will let others know whether the funds they donated have been spent in a proper manner as desired.
The hash of a block in a blockchain can also be treated as an electronic fingerprint that will help in identifying a particular block and the contents in it.
And, since this hash is related to both the previous and succeeding blocks of the chain, it cannot be altered.
If it is then all the previous and subsequent blocks will become invalid.
Blockchain technology seems to have growing applications in this modern world.
It can be used to track and monitor the movement of a consignment right from the source to its final destination.
This is very useful for those companies that procure materials from multiple sources and countries.
All will be properly and thoroughly validated before combining them to create the final product.
A company dealing with dairy products can use blockchain technology for compliance checking as well.
They can also see which particular farm supplied the milk should anything unexpected and untoward happen.
And finally, blockchain technology and crypto has helped the concept of metaverse to become a reality, well, to some extent as of now.
In short, blockchain technology can be used in any area that has a confirmed need for safe and secure transactions, and it need not involve money always.
Crypto has not only rocked the financial system of the globe but has made its presence felt in each and every aspect of life that is directly or indirectly involved with money and business.
With its strong potential, it will soon change the entire world.