by Lumai Mubanga
Every game-changer has benefits. Many of us will relate how the internet has revolutionized everything around us. Communication, relationships, finances and a lot more have changed for the better. The same applies to the blockchain.
Before we discuss some perceived disadvantages, this article will briefly look at some advantages and benefits of blockchain technology.
We assume that the reader of this article already understands the basic operations of blockchain, or what block chain is all about. With that in mind, we want to see why it is beneficial. Bear in mind that what we discuss here is not based on any hierarchical grading.
The introduction of blockchain has magnified and brought to the fore the term “micropayments”. While this term existed and has been in existence for some time, the blockchain technology seems to have pronounced it more. Since many have found the cost to perform a value transaction to and from one place to another globally to be drastically very low compared to earlier times, this has brought about the use of the term more and more. This feature has allowed thousands of businesses and individuals to benefit in terms of lower transaction fees on a worldwide scale. While some technologies have a local impact, blockchain benefits are global.
Rewind 10 or 20 years ago. Imagine that you invested in stocks, Gold, Cash and other objects of value. How much complete control and access did you exercise to them? In many cases, there would be a third party for holding and controlling access to your assets. That is almost being relegated to the books of financial history. Blockchain gives you complete control of the value you own. The absence of third parties allows you to have full access and control at any time you want.
There has been an explosion of related applications that have leveraged this technology to create payment systems that are efficient and faster in completing transactions than it was in the past. Added to this has been the security of transaction and information management at the figure tips.
Fast and Efficiency
Faster and secure transaction is no longer fiction. Blockchain has made all this a reality. It is a rare combination to fuse fast and secure value transfer and yet, that is what blockchain has achieved. Value is not transferred over a period of weeks and months, but minutes and seconds.
Power to the people
Why only third party entities and big financial institution would take responsibility to transfer value on your behalf, you now take it as your responsibility to undertake any value transfer. Anyone in the community will then verify your transactions. This practice promotes transparency and community involvement. With such power vested in all investors, communities build around a common project that strengthens neighbourliness.
While many are still skeptical about the whole technology, thousands are building communities that trust each other, work together and improve the financial systems through speed and efficiency.