Anonymity of BlockchainDwain Ross 20 / March / 21 Visitors: 55
Cryptocurrency and blockchain are twin brothers but who is the most valuable? Towards the end of 2017, cryptocurrency analysts began to sum up their forecasts of cryptocurrencies rates and most of them had to admit that no one could predict the Bitcoin achievements even in the most optimistic forecast. Moreover, this record was achieved on crypto exchanges without a significant increase in the number of transactions with this token.
However, more and more experts of the crypto industry do not pay attention to the cryptocurrencies and their rates in their comments on the digital currency exchanges situation, although this is important. Rather, they focus on the blockchain technology itself as an effective mechanism applicable not only in business but also in public administration with high potential for improvements in the economy, in social policy and even in the state security.
The most important advantages of blockchain in the field of economic transparency are, among other things, the greatest value of this technology for ensuring economic, social and, therefore, political stability. As for ensuring the state security, for example, when blockchain is implemented in the administration of tax revenues, in the process of identifying and eliminating corruption, it can significantly improve the economy and clean up state bodies from personnel who are inclined to receive illegal incomes.
This quality is valuable in those areas where dubious transactions occur when using the fiat currency cash of a particular state. Many will argue that the protocols of the blockchain are based on anonymity and decentralization, therefore it is practically impossible to track criminal transactions.
Indeed, the blockchain itself has a great level of anonymity but all transactions based on it, including transactions, are performed using mobile devices and they are personalized. This makes it possible for special government structures to determine the identity of the person or legal entity that conducted illegal transactions in case of emergency (when such actions are legalized by the judicial branch of the government). And this is nothing more than an instrument of a serious battle against terrorism, financing of arms smuggling as well as human trafficking.
Blockchain is also important because of its social effects no less than because of its economic component and the component of state security. For example, many countries cannot ensure social equality or social justice for various reasons. This is expressed in the difficulties associated with determining the level of family income in connection with the payment of various social benefits. Often, the state is not able to provide targeted assistance using traditional income accounting systems, which will be an easily solvable problem with blockchain.
As for blockchain in business, we can distinguish two most important parameters: the possibility of launching ICO projects for financing innovations and increasing the transparency of trade transactions, directly and without intermediaries.
With regard to the banking industry, such negative phenomena as the impossibility of withdrawing deposit, due to restrictions as well as uncontrolled money issues conducted by the Central Banks will go away with the help of blockchain and cryptocurrencies turnover.
People, businesses and even the state get an absolutely transparent mechanism of financial and, therefore, economic and social interaction by means of blockchain and cryptocurrency.