While Bitcoin has been the standard bearer for cryptocurrencies and the blockchain, the technological innovation extends much farther. In fact, most digital coins use a similar blockchain to keep track of financial transactions. Even banks are beginning to get an inkling of the true potential of the blockchain. Blockchain could be revolutionary.
Full & Complete Record
Do you receive a paper copy of all of your credit card transactions for the month? Does this make sense when so many governments are trying to phase out paper? Sweden is trying to outlaw paper money. The blockchain is an electronic record of all the financial transactions that have ever been made. Your credit card bill only tracks your monthly purchases. Therefore, the blockchain has your credit card bill beaten by a hundredfold. The blockchain can also be used for non-financial transactions. Furthermore, the blockchain is not dependent on any particular brand. American Express and Visa have their own proprietary systems. Nations have their own currencies. Some see the blockchain as being useful for financial transactions across borders. The blockchain is not controlled by any one entity, it is decentralized. Thus, it might be more difficult for any single bank or nation to manipulate or corrupt the blockchain. This feature creates an added layer of legitimacy.
Experts believe that 4.4 trillion gigabytes of data are being created every single day. The blockchain is an electronic record-keeping system. Bitcoin and other digital currencies are trying to make the verification of financial transactions faster. Some think that the blockchain might eventually be faster than credit card authorizations. This might make it more likely that stores would use digital coins for purchases. If the blockchain system becomes more efficient than credit cards, then merchants might have economic incentives to use digital coins. The blockchain could be used to replace credit cards.
When you run your credit card through a machine at the checkout aisle, your financial transaction is being authenticated. When your financial information is verified, then your purchase will be authorized. This is a similar process conducted by the blockchain. The blockchain keeps records of every transaction that has ever taken place. If your purchase is authorized, it will be added to the blockchain. The Wall Street banking system broke down in 2008 – that is why they were bailed out. In public, they are criticizing the blockchain, while they are investing in blockchain technology behind-the-scenes.
There are numerous cryptocurrencies and some of them have actually been started by the Too Big To Fail (TBTF) Wall Street banks. They understand that the blockchain could be even more efficient than their present system of verifying credit card transactions. The reality is that the blockchain is not even chained to digital coins. It is a separate technology that could be developed independently. When you add up all the features of the blockchain – accuracy, legitimacy, and speed – you can’t dispute its tremendous potential.
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