Cryptocurrencies are becoming a more significant part of our lives almost on a daily basis. Something that was once viewed as a gimmick has now made tons of people millionaires, can be used to buy goods and services and has even become an accepted currency in some countries.
However, what are the consequences of crypto becoming the only currency we use? While the benefits are relatively well known, there are some negatives as well. Are online transaction platforms the future? And what else can the blockchain do for us?
Irreversible Transactions
One problem that has already emerged, and has burned a lot of people, is the fact that crypto transactions are irreversible. Once you send off your crypto or transfer it from one wallet to another, you can’t stop or reverse the process.
No matter how big or small the transaction is, the fact that you can’t reverse it puts many people on edge. You can track and reverse fraudulent activity; you don’t have that option with crypto.
Anonymity
Anonymity is also a concern. Think about the fact that when you are using your credit card, you need to sign the receipt so that you can track any fraudulent activity; once again, that option isn’t available for crypto. There is no process that checks the identification of the person using your wallet or doing transactions.
Since everything is digital, it is very hard, if not impossible, to identify who is doing what with your cryptos. They can disappear one day due to an unauthorized transaction, and there would be no way to find out who did it or where they did it from.
Transaction Speed
On the plus side, crypto opens us up to the world of incredibly quick transaction speeds. Crypto transfers are similar to PayPal transfers; they don’t require a lot of authorization and are done very quickly.
However, transfers between different trading platforms can take a bit longer, but not as long as regular money transfers. This means that your cryptos, and money, are easily and quickly accessible, no matter where you are or when you need it.
Cyber Fraud
If you combine all of these things listed, you can see that cyber fraud will be more common and easier. Many crypto exchanges have been hacked already, with millions in crypto stolen in the blink of an eye.
If you were to hack into banks’ details, you would only be able to steal the information of those that use the bank. Hacking a crypto trading platform, such as Binance, gives you access to hundreds, even a thousand times more data.
What Can the Blockchain Do?
On the other hand, the blockchain has opened up tons of possibilities for storing, sharing, and protecting information and data. It can also be utilized in several fields, from insurance to real estate and simple data storage. Some of the ways the blockchain can change data storage and security include:
Money Transfers
Transferring money using the blockchain will allow faster and more secure transfers. It will also be cheaper than what we use today, meaning we can transfer more quickly and incur far fewer fees.
Insurance
Using the blockchain for insurance will give both customers and providers more transparent contracts and prevent customers from filing multiple or duplicate claims. Once something is on the blockchain, it is there for life.
Secured Personal Information
The biggest plus of the blockchain is the security aspect. The blockchain becomes more and more secure as more blocks are added. This means you can store your personal information, such as wills, on the blockchain, and they will be protected, and no one can steal or tamper with them.
Data Storage
Whether it be in the business or medical field, using the blockchain to store, protect and share information is the future. It can eliminate the need for files; any and all data can be retrieved with a click of a button and shared to where it needs to go in no time.
Having crypto completely eliminate fiat currency definitely has its negatives at the moment, but numerous positives are hard to ignore. A combination of both is probably the best way forward right now, but we don’t know what the future holds.
