Blockchain forms the basis of cryptocurrencies like Bitcoin. The US dollar is controlled by the Federal Reserve. Under this central authority system, a user's data and currency are technically at the discretion of their banks or governments. If a bank's system is compromised, the customer's confidential information is at risk. If the customer's bank system fails, the bank customer's data may be lost. In a country with an unstable government, the currency's value may be at risk. Some of the banks whose money ran out in 2008 were partially rescued using taxpayer money. These have been the concerns that drove Bitcoin to be designed and developed.
Blockchain spreads its operations across a network of computers, allowing Bitcoin and other cryptocurrencies to operate without the need for a central authority. This not only reduces risk, but also eliminates most of the transaction and transaction fees. In addition, banking systems in countries with unstable currencies or with irregular financial infrastructures can be provided with a more stable currency and a wider network of individuals and institutions to do business both domestically and internationally.
Using cryptocurrency wallets as a savings account or as a means of payment is very important, especially for those who do not have a government-issued ID. Some countries may suffer from war, or there may be governments that lack real infrastructure to provide identification. Citizens of such countries may have no other way of safely storing their wealth if they cannot access savings or brokerage accounts.
- CandleFocus Editor
Currency