7 Ways the Cryptocurrency Can Change the World
The revolutionary technology of cryptocurrency, based on blockchain technology, allows individuals or institutions to transfer money securely and anonymously without intermediaries instantly. It can expand international commerce and support financial inclusion. It can also transform how we shop, save, and do business in ways we may not even understand. Let us look at 7 ways that cryptocurrency can change the world.
1. Make Bank Transfers Faster and Cheaper
Today’s banks do not send money in the traditional way. It can take up to seven days for international bank transfers because it requires clearing from correspondent banks or country-specific clearinghouses. Even in transactions across borders, there are numerous challenges and frictions.
The fastest way to move money around the world is with cryptocurrency. These transfers can even be made without the need for new currencies. It works by finding the best route between trading partners and verifying all transactions simultaneously. Making transactions via cryptocurrency does not require the same checks and balances as banks before transferring funds. Whether a national or international transfer, cryptocurrency transfers are instant, don’t need any fees, and can be tracked and securely stored in the blockchain. Additionally, cryptocurrency allows anonymous payments. These transaction details are not known by other users, including the price, fee, time, date, and names of the parties.
2. Give a Boost to Global Remittances
More than 500 billion dollars in remittances are sent home each year by migrants from developing countries. This sum is more than foreign direct investment. With total fees for international transfers averaging 6-10% for sending $200, the burden on some of the world’s most vulnerable people is substantial. These transfers can be made faster and cheaper with technology. Users can send money to their loved ones using virtual currency. The only fees are those charged by currency exchanges. Traditional money transfer companies must have capital in order to cover for international money movement delays. However, digital currency firms require much less capital. Remittance companies must also bear capital carrying costs as well as the cost of money movement. These costs can be reduced to make it easier for smaller players to enter and establish new remittance corridors or for existing players to serve smaller towns or new countries.
3. Programmable Money and Smart Contracts can Become a Reality
Once an asset has been made digitally, it can be automated to move. This opens the door to “programmable money” or “smart contract.” Smart contracts can be used to pay smaller amounts in the digital age, where trust is a significant issue for those who want to transact from an arm’s length.
Programmable money can also be used in more complicated contracts, such as financial contracts that involve multiple parties or complex derivatives. A financial contract that will pay according to stock prices might allow you to put money into it. The Bloomberg terminal feed could link a computer program to stock prices. Different individuals will receive funds depending on the outcome of certain stocks or combinations of stocks.
4. Smart Contracts & Software for Finance Management
Automation becomes possible when an asset is digital. This opens up the possibility of smart contracts, automatic execution of transactions, and escrow operations. These are often used for large transactions such as house trade. The user makes a purchase and then sends the payment to an escrow. It goes to the seller when the transaction is complete, and the item/service has been received. This principle is also applicable to smaller transactions. Trust is no longer an issue. No one will have transaction details (QTUM price, date of deal, names, and addresses of users), making it difficult to steal assets.
Multisig is another helpful feature. The funds can only be spread across accounts if multiple signatures have been received from authorized parties. This protects against digital data theft and allows companies to ensure that their funds are not lost or stolen in international transactions. This applies to individuals, businesses, divisions, as well as residents in developing countries.
5. Reduce the Risk of Fraud
Fraud is a major concern when it comes to anything that has to do with money. Fraud is a concern for anyone, regardless of whether they are transferring money or using a credit card to access an unsecured website. This is especially true for people who have been victims of fraud in the past. It isn’t associated with cash or bank accounts and can be transferred electronically securely using the blockchain to record all transactions. This will help reduce fraud and give you peace of mind.
6. Help Entrepreneurs Get Funds By Increasing Crowdfunding
Crowdfunding has become a popular way for entrepreneurs to raise capital for their products and/or concepts. Crowdfunding allows investors to make smaller investments than large ones. This reduces the risk. Investors will be more inclined to invest if there is no risk. As it continues to impact crowdfunding, cryptocurrency will make the world better. Initial coin offerings (ICOs), used to raise capital for startup companies, center around cryptocurrency.
7. Help Keep Individuals and Companies Accountable
There are many companies and entire industries that practice illegal and corrupt practices. We want to make sure that the businesses we purchase from are ethical and uphold all laws and rights. However, relying on the words of an individual or company to judge their honesty is not a reliable way for you to assess their actual ethics.
By changing the process, cryptocurrency can make the world a better place. The blockchain technology behind cryptocurrency cannot be altered like traditional currency. Companies and individuals can be held accountable by using crypto and blockchain technology. Consumers also have more information about the companies selling to them.