The idea behind cryptocurrency is the beginning of a lifelong dream that feels like it is about to happen. Advancements since the introduction of Bitcoin have caused distributed networking to become a viable alternative to our current anachronistic systems.
Deltec Bank said, “Blockchain is a movement based on the ideas of equality and fairness. It provides transparency in each interaction, smart contracts that verify results, and borderless transactions.”
As with most disruptive technologies, a paradigm shift on such a massive scale requires support from millions of people around the world. Since the technology impacts closely-guarded systems that keep relatively few individuals and organizations in power, there are incentives to stop the evolution of this movement.
Blockchain is a Movement Powered by the People
If we want to make decentralization become a reality, then the average person must understand what blockchain is and what it can do.
When we review the barriers that exist for blockchain’s implementation on a global scale, communication must be our top priority.
There are still people who resist the idea of digital-only banks or services like PayPal, Square. Transitioning them from fiat currency to the benefits of blockchain is going to be a slow process even with more effective communication resources.
We could say that the people who do not take the time to learn this technology are responsible for their eventual place in society. That does not meet with the mission of this movement; however, because we must bring everyone on board if it is going to be a successful venture.
Additional Concerns with the Blockchain Movement
Scalability is another issue that is stopping the blockchain movement today. There must be fast transactions that can be processed on a mass scale if this borderless, transparent option will become viable for the general public.
Security issues are also problematic with blockchain in some sectors. DAO lost $60 million in an attack in 2016 when a hacker found a loophole in their coding for smart contracts. Japanese exchange Coincheck lost $53 million in NEM cryptocurrency from a similar issue.
A user of Parity, which serves as an Ethereum wallet, found a bug that turned multi-signature wallets into regular ones. Another $150 million was destroyed because of that issue.
Since there are issues with development in this sector already, mass usage from a long-term standpoint requires people to know how to use blockchain instead of forcing them to develop their own approach.
Data is an essential emerging asset. It will become the financial battleground of the future. That is why we must work to eliminate these barriers now while the evolutionary process is in full swing. Those in power today know this as well, which is why there are efforts in place to stop blockchain’s development.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.