Decentralized currency ensures security, stability, low transaction costs, and fraud prevention through blockchain, empowering people by reducing third-party control.
What is money? It represents value, which people conventionally assign to pieces of paper or material-made coins. But what if you could store that value on a virtual block instead of in a physical form? This is enabled by blockchain technology, which safely stores valuable data, whether it be wealth or anything else, and can be managed by you whenever and wherever you wish to use it.
A blockchain is a distributed database spread across the nodes of a computer network. Blockchain technology allows the electronic storage of data in a digital format. It is best known for its vital role in cryptocurrency systems like Bitcoin, enabling the tracking of secure and decentralized records of transactions.
There are numerous advantages to using blockchain, such as ensuring the reliability and security of data records and creating trust without the need for a third party. In today’s changing world, it is necessary to democratize digital currency using blockchain technology to ensure the safety of people’s wealth.
As we all know, democracy is about having power in the hands of the people. Today, due to the availability of blockchain technology, a currency’s value can be entirely controlled by the people instead of third parties like governments, private giant firms, or wealthy individuals. The digital revolution has transformed financial operations.
The transition in financial and capital markets has shown us that whoever controls the currency can regulate markets too. The sudden rises and falls of global markets are signs of regulated currency power held by a few. These few organizations, whether governmental or private, can manipulate markets by inflating or devaluing the currency. As a direct consequence of this phenomenon, the common person’s wallet suffers the most.
To remedy this problem, having a safer and more stable currency is the best option for the general good of the public. By decentralizing the currency, many benefits can be gained by individuals, organizations, and markets. Some of the reasons why people may prefer a decentralized currency in the coming days include:
No Third-Party Meddling
Decentralized currencies cannot be regulated by private organizations or governments, resulting in more stability in the market and no sudden rises and falls in value based on the whims of a few. Value changes only occur when most of the user base accepts them.
Effective Fraud Prevention
Blockchain technology is an open-sourced ledger that records every transaction. It helps in easily identifying fraud. Blockchain systems are monitored and maintained by miners who authenticate transactions 24/7. Numerous miners worldwide validate blockchain transactions at any given moment, providing immense surveillance and making decentralized blockchain-based cryptocurrencies nearly impenetrable to fraud. This is a massive benefit of decentralized blockchain currency.
Money Can Be Transferred Quickly
Financial activities are being digitized rapidly worldwide. The need to carry physical cash is diminishing daily as people use digital wallets to buy physical and virtual products and services. A decentralized currency system reduces the possibility of transaction failures, and money can be transferred quickly.
Lower Transaction Costs
In regulated markets, large-sum transactions between two parties involve processing charges from banks, governments, and service providers, sometimes a percentage of the overall amount. Transactions in decentralized currency mean sending money directly from one party to another without needing any other services, effectively reducing transaction costs.
Rising Demands in the Markets
Recent data indicates that the cryptocurrency market cap has risen above two trillion USD, showing that the decentralized currency market is the fastest growing in the world. The demand for blockchain-based currency does not seem to be decreasing anytime soon. With the acceptance of many global banking and private entities, such currencies are here to stay. Adapting to this model will help us stay in step with changing global markets.
An Effective Store of Value
Due to its limited availability, blockchain technology used for storing decentralized currency has exclusive use. Its finite nature makes value appreciation more likely, which can increase the currency holder’s wealth as demand rises. It is akin to owning digital gold; unlike gold, you do not need physical storage for security because it is highly secured using encryption and easily transacted using digital devices.
As the world goes digital, the desire to use digital currency will increase. Decentralizing it will help protect people’s wealth with the security options provided by blockchain technology, reducing interference by third parties and ensuring the common people’s wealth is safer.
