Why Blockchain Technology Is Key to Building A Global Economy

For a very long time, Bitcoin overshadowed the technology behind it. Being a new financial asset, this was not only normal but also expected. However, nearly after a decade, the technology behind Bitcoin is slowly emerging from its shadows and slowly establishing itself as one of the world's most promising technological advancements.

From the past few years, billion-dollar corporations from Finance to Shipping, Healthcare to Energy, have set up teams to explore Blockchain technology. We tend to forget that the brain behind it all, Satoshi Nakamoto created two equally powerful new entities- Bitcoin and Blockchain.

In this article, we will look at why Blockchain is technology, which is going to change the world's global economy. However, before we begin, let us first look at what Blockchain technology means and how does it work.

Blockchain Technology: Meaning and Definition

Blockchain runs Bitcoin transactions. In simple words, it is a distributed time-stamped ledger, which is not controlled by banks or financial institutions. In other words, the individuals themselves run the peer-to-peer ledger.

It is a highly decentralized mechanism, free from the control of governments and other financial institutions.

Blockchain is not only one of the hottest technologies that have captured the eye of the public sector as well as the private companies; it is also the most revolutionary.

Even though Blockchain technology and the science behind it has existed for the last twelve-odd years, it is only in the past year, where people have started to consider it seriously.

Unlike other digital processes, there is no one single processor, which is powering all transactions. Rather there are multiple 'blocks' and everyone has access to their own blocks in the transaction history.

The decentralized nature means no one person or body will be able to alter the entire transaction sequence as it happens in a normal digital transaction.

How can Blockchain Technology alter the World's Global Economy?

The period of globalization has meant that the country's natural borders have become quite porous. The movement of goods, products and services between national borders has created an integrated and mutually beneficial global economy.

Nike and Tommy Hilfiger manufacturing goods in Bangladesh, Wind Farms in Colorado using Chinese technology are just one of the millions of examples, which shows how globalization has grown the world's economy.

However, this does not mean that there are no challenges to international trade and globalization. Transactions, billing, sharing assets, movement of documents, licensing and permits are all major holdups when it comes to seamless trade and economic development.

The adoption of Blockchain technology can help accelerate all the processes and challenges mentioned above. Blockchain is not only incredibly fast, but also one of the safest channels of making transactions and sensitive information across countries and continents.

Blockchain technology has immense potential for the world's shipping and maritime industry. It can also be highly advantageous if used in the healthcare and legal industries of the world.

How Bitcoin and Blockchain can help Developing Countries

If you want to understand how Blockchain technology can aid economic development in the third world and developing countries, you simply have to compare them with the spread of smartphones and mobile internet.

Just like smartphones and mobile internet have unleashed the potential of countries like India and China, so too will Blockchain technology. By taking away control from the government and letting technology, lead the way to economic development, the huge population of developing countries springs to life.

Blockchain technology can also help in expanding formal banking and finance facilities to a vast section of the world's unbanked population. This can add trillions of dollars into the world's economy and aid and accelerate development.

Conclusion

Many experts suggesting that Bitcoin and Blockchain can have the same effect on the world as computers and the internet did. With many of the world's biggest players ramping up investments in Blockchain technology, we are going to see major breakthroughs in the next coming years. If you wish to know, more about Blockchain and Bitcoin investments please visit- bitcoin pro