Has blockchain proven itself as a technology of the future? As a result of the ongoing development of cryptocurrencies and the broader use of blockchain technology, there has been a process of maturity across the industry. Forbes even went so far as to call Bitcoin the new gold.
Governance and Risk
There continue to be many issues associated with this technology environment, particularly in terms of governance and the associated risk for investors, however, there has also been recognition of the opportunities for broader application outside the usual mainstream financial environments. Fundamentally, blockchain provides a visible record of transactions that are supported by the computing power provided by ‘miners’ to enable transactions to be verified and processed. The transactions occur between two parties and are able to be completed quickly and cheaply.
Cryptocurrencies have the capacity to play a positive role in enabling financial inclusion for a broad spectrum of people, with improved regulation to offer protection from scams and fraud. In countries where there are ongoing problems around financial governance and the associated structures to support financial activities, it is possible to provide a system that is safe, stable, and secure. There is the opportunity to build new systems that will include a range of governance measures around the rights of investors, including issues around ownership and the protection of rights associated with ownership.
Blockchain and Ownership
Blockchain has already established its versatility, now being utilized across a range of environments, including by Government authorities. It has the flexibility to provide a mechanism for the establishment and operation of cooperative structures. These are able to exist and function outside of the current market-based systems, and the hierarchical financial constructs for business operations.
For those involved in the transfer of ownership of goods and assets, there are also issues with corruption, fraud, and manipulation in many markets involving financial transactions. This is particularly relevant in countries that have not developed effective, and enforceable, governance systems and processes. Blockchain technology offers an alternative, however, it requires an approach to the protection of ownership rights which is slightly different from traditional transactions using the processes put in place by established authorities.
Finance and Market Systems
Current market systems can act against the interests of smaller individuals limiting their capacity to compete against larger, and more influential, enterprises. It may also limit their access to suitable financial support networks and funding opportunities. A small farmer might be familiar with technology but might not be large enough to warrant the attention and support of a financial institution and they will also be hit with processing fees associated with transactions through current financial systems. Cryptocurrencies may offer an alternative that could assist these people.
Bitcoin has already become established as a new form of currency. It may not be the same as other forms of money but its acceptance and use continues to grow. There has also been a recent shift to the introduction of alternative types of virtual currency. To directly address the issues associated with market impacts on smaller producers and merchants there has been much closer scrutiny of the possibility of using collaborative systems supported by blockchain technology.
Faircoin and FairCoop
Faircoin has been established as a new global cryptocurrency that is used within a cooperative network. With the support of FairCoop, it has been able to connect small community focused cooperative networks and offers a service where transactions are processed quickly. It operates with a greater emphasis on a trust-based system with the approval of 19 socially vetted nodes required for a transaction to be approved. The Faircoin currency has a value that has been set with an equivalence against the euro so that all users can be certain of the ongoing value. This simplifies the transactions and ensures stability.
Producers or merchants within smaller or less developed countries, with limited access to the formal processes of financial institutions, may struggle to gain access to the standard electronic payments systems, such as online credit cards and funds transfer systems. However, they are able to access the FairCoop system quickly and easily. In a sense, it may limit their access to a broader international market but it provides them with access to online customers that they may not have been able to acquire through the current market systems available.
The other advantage is that as the Faircoin has a stable value, even if the local national currency for the merchant is unstable, they can always be confident of the value being maintained for the sale of their products. A disadvantage is that Faircoin’s value may not be properly underpinned by financial holdings. However, the cryptocurrency is merely acting as a facilitator of the market process which is established through relationships between parties with similar needs, and shared perspectives on market activity, in an international marketplace. If you are well versed in cryptocurrency, you should know the platform for all crypto projects, which stores reviews in the blockchain. Cryptocurrency reviews on Revain this is an integral part of the crypto market.
Data Rights Ownership
There is also a growing awareness that the end data rights belong to the user which is a shift from current arrangements where centralized entities hold and control the data. This has been demonstrated with the introduction of recent data protection legislation in Europe. The individual will have control over their data and be able to identify how it is to be used, giving small users more control than they have had previously. Blockchain is a suitable technology for this and will support a more decentralized system.
As blockchain technology becomes more common in our lives there will also be greater use of established cryptocurrencies. Will it provide a basis for the creation of alternative financial systems, as well as new international business institutions and market processes based on the principles of cooperation, collaboration, and social solidarity? There is ample opportunity but are we ready for this type of system?
Lori Wade is a journalist from Louisville. She is a content writer who have experience in small editions, Lori is now engaged in news and conceptual articles on the topic of blockchain. Revain – User Review Platform about various cryptocurrencies in real-time. If you are interested in cryptocurrency or ICO, you can find her on Twitter & LinkedIn. She has good experience and knowledge in the field.