As our society faces the 4th Industrial Revolution, the Internet of Things, artificial intelligence, blockchain technology, and cryptocurrencies have emerged to disrupt the world and traditional markets.
The question arises: What is Blockchain technology?
Think of Blockchain technology as an infinite database and an immutable journal that grows exponentially. Blockchain technology debuted in 2009 with the release of the widely known Bitcoin. The idea behind this technology is the ability to conduct peer-to-peer transactions quickly, anywhere in the world, anonymously, without intermediaries. Making payments via cryptocurrencies is introduced into Blockchain technology, which, while accessible, cannot be modified or deleted. Blockchain technology is like a transparent and immutable ledger. However, Bitcoin is decentralized as it is not controlled or regulated by the central bank or government. Hence, the security of its transactions lies in the hands of “miners” who secure the intricate path of each transaction on the Blockchain platform through the mining process, which aims to revolutionize both the traditional payment system and the financial world as we know it.
Also, it is very important to note that Blockchain technology and virtual currency technology, namely cryptocurrencies, are different. In previous decades, either for commercial reasons or due to regulatory orders, financial intermediaries have developed at every point where market integrity is lacking to provide assurances that markets will function without unjustified friction. Blockchain technology can solve this problem anew. For the first time in history, there is an immutable, decentralized leader globally, eliminating the need for intermediaries, complex control systems, and time-consuming settlements. Open (without the required license) protocols mean that settlements no longer depend on the connection of fragmented old-fashioned systems.
Additionally, since the universal system is attached, the integrated Blockchain timer provides high accountability. In other words, Blockchain technology incorporates a reliable audit trail. Mervyn King, former Governor of the Bank of England, in his book “The End of Alchemy,” suggests that both our societies and economies fail because they have stopped predicting the next steps. Instead, they prefer to maintain the status quo without questioning how we can improve our existing systems. Regarding the effort for “sustainability,” we tend to condemn every innovation that is too revolutionary or threatens our imaginary safety net for sustainability. Blockchain technology will be crucial in redefining economic models and achieving real growth. The majority of people are familiar only with the Blockchain 1.0 model. It is sure that there is a long way ahead of us in implementing and adopting the new advanced blockchain technology system. Regarding regulating cryptocurrencies, Robert Nozick’s approach and idea about the minimal state are noteworthy. Undoubtedly, regulatory authorities should act as vigilant guardians so that they are ready to intervene only when protecting citizens is imperative.