The Blockchain technology, one of the most potentially disruptive innovations of computer sciences seem to have a become an obsession worldwide with the consumers going head-over-balls and the governments finding out ways to assimilate the cryptocurrency markets to suit the needs of a centralised economy.
The Cryptocurrencies were an invention of an anonymous group of scientists in Japan, who created a technology that is potentially now one of the world’s most over-hyped and technical disruptions that will assimilate the entire world economy in a few years time if not controlled.
There are diverse opinion on the fact whether the use of cryptocurrencies will help the current economic systems that are centralised or will usher in an entirely different modus operandi leading to less regulation and more party centric computerised transactions that may not be traced.
Blockchain employs a process that is empowering anyone with a power consuming super computer that mints the cryptocurrency and trading it online. The cryptocurrencies offer anonymity and a lot of transparency in transactions and is also immune to market fluctuations. The data is shared, and the system becomes democratic, where any slight changes in the data involves, the consent of all the parties in the community. The transactions also don’t call for third-party involvements, and is done with the aid of predictable smart contracts generated through a computer code, which save the time, and resources, and bypasses the legal complexities. The anonymity of transactions don’t let the user be traced hence the cryptocurrencies have gained a lot of traction in the blackmarket, or shadow profiteers.
The use of cryptocurrencies is not just a cynical story, it has many benefits if the banks and the economic system relies on it freely as it has the potential to make world a one market without boundaries and alleviate the poverty of nations. The state sponsored cryptocurrencies are just gaining momentum with Russians working on the first project.
The Chinese have made it illegal to trade in cryptocurrencies and they will, for sure in the recent future develop their own robust market for cryptocurrencies.
The one perceivable threat is if the cryptocurrencies are not regulated now, and the State authorities don’t move fast, the blooming cryptocurrency market may be put to use to several ends that might not be fruitful to the civilisation. If look at grim problems the world faces, there is mass unemployment, terrorism, drug trafficking, money laundering, corruption and enmity among nations that may lead to fearful consequences by the use of cyrptocurrencies.
The civilian authorities and banks in many parts of the world, may not be able to afford to deal in bitcoin-blockchain systems as of now. The massive technical upgrade that it warrants may not be done with capital surplus nations. Then what will the developing and the third world countries do, they will follow suit of the developed masters, and nothing more.
The entire system remains complicated, yet it has several positive uses, thus the need to regulate them is the need of the hour. The internet may not be as safe as it looks after all and the centralised economies will have to respond to meet this new challenge. There are greater risks of converting unaccounted wealth to bitcoins and use it freely, this will be a feature that will make the authorities squeal. The facts and figures don’t assume much significance unless a logical background is created to tackle the bitcoin/crytpocurrencies at the earliest to mitigate the chances of global economic derailment and market upheaval.
The blockchain technology has been seen as becoming a craze for not very healthy reasons and the obsession has to be silenced, blockchain technology needs to be regulated at the earliest in the interests of a balanced economic ecosystem.