Blockchain technology, why is it a revolutionary sector?
Sofía R. Ustáriz Journalist
Why is blockchain technology a revolutionary sector and what investment opportunities does it present? Join us to answer these questions about investing in blockchain technology.
It is no secret that the traditional financial system has many areas for improvement: transparency, traceability, flexibility, access for the entire population and cybersecurity are just some of them. Blockchain technology is a proposal to solve most of them (one of the reasons why the cryptocurrency market grew 300% during 2020) and investors of the present – and the future – know it.
What makes blockchain technology revolutionary?
States, social movements and even banks are looking for ways to facilitate financial transactions for the common population, while having to make great security efforts to avoid fraud or being a means of corruption.
In addition, traditional financial institutions (where users pay that third party to protect and keep track of their accounts) offer limited investment alternatives for the common population, limiting their capacity for economic growth. On the other hand, social assistance programs through vouchers or time deposits present a problem to be spent by their recipients due to the complexity presented in the “knowledge society” by using non-financial or cash means in real time.
The blockchain technology proposal gives a low cost solution to all these problems: through a tradable and transparent system for all its users, dedicating its operational costs to the minimum necessary hardware and human talent and offering flexible money movement solutions around the world, for all people, with no limit of “wealth”.
Uses, pros and cons of investing in blockchain technology
It is very easy to exchange fiat currency for cryptocurrencies, in fact, there are ‘stablecoins’, which allow the user to keep parts of their money in a cryptocurrency anchored to the value of a fiat currency -such as the USD-, but it is necessary to take into account that it is still a highly volatile market and, as in any investment, it is wise to get advice or perform a technical and fundamental analysis of the asset in which you intend to invest.
But blockchain technology is not only intended for cryptocurrencies, it could also be used to store all of a person’s digital data in one place: such as their tax, legal and/or health information, which would be a great advance in the centralization of data, giving greater power to people over their personal information -and with whom to share it- and facilitating government or medical procedures. Countries such as Argentina, Spain and Colombia already use blockchain-based technologies for some of their civil procedures.
Blockchain technology is revolutionary because it is the future of information.
