Can Blockchain prevent another financial crisis?

By Nelson Ikechukwu Nworie

As far as the next recession is concerned, no one can predict when or how it will occur. Nevertheless, we know there are different ways to prepare for it today than there used to be.

Blockchain technology is one of them.

Many experts believe blockchain to be a breakthrough technology that is revolutionizing the landscape of financial transactions, most notably Bitcoin and other cryptocurrencies.

This article investigates how blockchain, through transforming financial transactions, might aid in the prevention of another financial crisis.

In recent years, Blockchain has become one of the most innovative technologies that allows people across the globe to freely transact digitally with full transparency. Its database system contains a continuously growing list of records, known as blocks, with timestamps and links to previous blocks.

Blockchain technology has made it easier for people to start moving money across the globe than ever before. For business owners, this means they now have access to fast, secure, and transparent solutions that can save them valuable time and money. Businesses can eliminate 3rd party services that charge high fees for currency conversions and bank transfers because the network handles everything.  

Will it actually save the world?

The financial crisis of 2007-2008 was one of the biggest problems the world has seen in recent times. The crisis was largely due to the lack of monitoring of the financial market. There was no one to hold the banks accountable. Blockchains were created to do just that, to limit the power that banks had and to make it easier to monitor international transactions.

The Blockchain has already saved the music industry by removing record labels and allowing independent artists to sell directly to consumers, which has led to more artists breaking the top 100 charts. Essentially, this technology can be applied to numerous industries, each with its unique implementation, because it doesn’t work as current systems do.

In today’s global economy, 1% of the richest people control most of the money and are more powerful. Blockchain technology, however, is helping to level the playing field. With Blockchain, global wealth can be distributed evenly, making it more inclusive, efficient, secure, and creating new digital currencies.

In my opinion, Blockchain can solve issues of trust, transparency, and accountability in the following ways:

• Blockchain is a decentralized system; therefore, it is more trustworthy. Data that is inside a blockchain is visible to anyone in the network. In that way, everyone is checking all the data for errors and corruption.
• Blockchain can provide trust because anyone can see the data in the network, so everyone can see if someone tries to change something.
• Blockchain can provide accountability because everyone in the network checks everything inside the Blockchain.

Blockchain isn’t just for speculators; it has real-world uses that could benefit the entire globe. We can see many positive attributes to blockchain technology, including transparent, secure, and decentralized functions, and we believe this is the future of the financial industry.