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With the breakneck speed at which technology has evolved over the last few decades, humanity has seen innovations that our forefathers couldn’t even have imagined.
From the first computers coming online, to the smartphones that are now globally connected and glued to everyone’s hands, technology has come a long way in a short time but nowhere is this revolution more obvious than in the sphere of modern finance.
As computers became more affordable, useful and available, banks quickly exchanged the pen for the printer, before these also got the boot, replaced by email and interconnected bits of software helping to track the flow of coins across the globe.
Little did anyone know that in 2008 a digital currency experiment called Bitcoin would usher in a financial revolution like no other. This technology is called blockchain.
Blockchain reaking money
Today, we are seeing extreme ups and downs in the money markets on a global scale, with inflation, interest rates and economic uncertainties affecting the value of those fancy pieces of paper we all use to buy things more than ever before.
Then, seemingly out of nowhere, in walks blockchain, and every head in the world of finance turns to look.
A blockchain is essentially just a very smart form of digital bookkeeping.
Instead of having all your records kept in one place, the blockchain is set up as a digital network that shares all the information it holds with everyone using it. Not impressed?
Well, Bitcoin was built on this new technology and served as the unwitting proof of concept that would usher in a new form of trade, named, ‘cryptocurrencies.’
Many of us have certainly heard of crypto, and it is estimated that the use of cryptocurrencies is quickly nearing the 500 million user mark.
This is great for crypto, but how does this impact the average Joe?
Interestingly, central banks have started turning their country’s entire currencies into digital money, often based on blockchain technology.
According to the World Economic Forum, 11 countries have already launched digital currencies, either fully or in pilot programs.
Whether these countries choose to use blockchain as the backbone of their new CBDC (Central Bank Digital Currency) matters little, as it is the success of blockchain-based cryptocurrencies that have forced their hand and launched the world into an age of digitizing money.
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