A vision of a world where cryptocurrencies are the main payment instrument
What is the impact of cryptocurrencies on the world
It is already becoming clear that cryptocurrencies are the future. This technology has the potential to improve the banking sector and make life easier for people who don’t have access to banks.
Cryptocurrency as a fundamentally new financial instrument already affects about one-third of the world’s population.
A ResearchAndMarkets.com report indicates that cryptocurrency is increasing in activity around the world. The trend here is emerging markets.
The research presented in the report shows that blockchain technology will have a major impact on global GDP by 2030, generating nearly $ 2 trillion in growth. If current trends continue, developing countries will determine the adoption and development of cryptocurrencies.
Development paths of the crypto industry in 2021–2022
1. From “passports of immunity” to valuable assets
The cryptocurrency market is breaking records, and its growth leads to a new wave of interest in blockchain technology.
Tokenized shares are a prime example of today. They help raise additional capital. More on this topic in the previous article.
Cryptocurrency is widely in demand as a marketing and PR tool. NFT is becoming an important concept of business processes, including extremely high impact on the field of art.
2. Companies are more actively integrating blockchain into internal processes
An example is the area of logistics. Blockchain helps to organize simple, accurate, and secure data exchange in complex supply chains. The impact consists of:
- improved tracking and traceability;
- efficient purchase of products;
- improved payment process;
- effective inventory management;
- increasing customer engagement etc.
And this is a single example. More cases in various niches are discussed in this article.
There is a high likelihood of an increase in demand for decentralized infrastructure. Experts call the factor of decentralization one of the key factors in building the value of the blockchain. Decentralization increases the network reliability and reduces risks with centralized control over the blockchain.
For example, the Telegram Open Network project, launched by Russian entrepreneur Pavel Durov, became one of the most sensational projects of 2018. The project raised about 1.7 billion dollars from private investors in a very short time. It was to become one of the fastest performing transaction platforms, surpassing the current capabilities of Bitcoin or Ethereum, with significantly lower fees for remittances.
Problems with the SEC forced Pavel Durov to freeze the project and give it to independent developers. The project became open, and the investors received their invested money back. Today, it is known as Free TON.
Now the free open network Free TON is being upgraded to the next generation of blockchain. Free TON is a fully decentralized self-governing blockchain. The goal is to make an accessible ecosystem with smart contracts ruled by the principle of a decentralized autonomous organization (DAO).
Regulatory authorities constantly impose restrictions, but decentralization remains a demanded and expected concept in a lot of niches.
Benefits of cryptocurrencies for the economy
The benefits of cryptocurrency and blockchain technology, in general, are many and varied. Let’s highlight a few fundamental ones.
It’s a great chance for countries with bad bank credit. Banks and payment systems are still inaccessible to a huge number of people. The success of cryptocurrencies gives hope to residents of developing countries, and a new payment instrument can become the main one there.
More business opportunities. Cryptocurrencies are also an important tool for accepting and storing payments. Let’s take the history of BitPesa as an example. This is a project that helps business owners in Africa to make financial transactions with European, American, and Asian companies. Their goal is to help small and medium-sized businesses increase their financial reach and open all possible financial connections with the world.
Security is the most important aspect in the era of all-out digitalization and personal tracking. Here you will be completely sure that your digital identity cannot be stolen or faked. This is why blockchain inspires trust among users.
Transparency. It is difficult to put it side by side with anonymity, isn’t it? But we are talking about the transparency of transactions, the transparency of their transfer, the way from user A to user B. Blockchain technology is the key for the information transparency about the movement of user transfers that remains in the public ledger. Third-party influence on the payment or transfer of funds is impossible under such conditions.
Also, others can’t change the initial price “along the way”, assign any additional fees or commissions. You can see exactly how your payment is going.
Businesses and consumers around the world today are becoming more open to blockchain technologies and cryptocurrencies. These technologies are being modernized and improved right now. Your altcoin may be thought of as a joke or a fundamentally new and super-reliable cryptocurrency, but the digital asset becomes a full-fledged participant in the system.
Therefore, major players in the retail and online payments market are forced to meet the existing demand. Cryptocurrencies are the future that has the potential to make the banking world so much better. Following this, the quality of life of people without access to banks will improve too.