The Future of Money: How Blockchain Technology is Transforming Finance

Post Views: 36

The future of money is about to turn upside down. For millennia, the world has had a centralized system of money in which monetary exchange occurs through paper money and institutions such as banks, currency printer presses, and so on. Now, blockchain technology will revolutionize finance by converting from a centralized finance model to a decentralized, transparent, and secure ‘blockchain finance’ model.

Blockchain and how technology is poised to transform the future of finance; look at what technologies are already transforming the sector, and what new technologies developers around the world are creating – and exploring. Keep on reading to find out even more about this interesting topic.

There has been a big rise in the popularity of online gaming in recent years, where vast in-game economies have emerged around in-game items, skins, and collectibles. These assets are held by the developer of the game who allows in-game players access to them, while ownership technically doesn’t truly exist. In many games, players can purchase items like rare weapons or character skins with real money, but if they quit the game their ownership ceases to exist. Blockchain technology has now enabled players to be able to own truly unique in-game assets through non-fungible tokens (NFTs). NFTs are stored on a blockchain ledger and, by doing so, they confer ownership to the individual. 

The online casino genre has already adopted a lot of blockchain technology into their games, which encourages early adopter players to get involved and utilize all the newest features and table games that have become so popular. An evolution from playing roulette on a table, to online interfaces, and now through to Bitcoin roulette, shows the power of these decentralized currencies. Many of them provide faster payment methods for players and add transparency to the process.

The use cases for using blockchain within gaming communities are really exciting. Players can now own their own rare weapons, character skins, or pieces of land in the game. These assets can then be purchased, sold, and traded on crypto markets.

Blockchain is also impacting other aspects of the gaming space. For example, esports is a rapidly emerging spectator sport where players can make a living out of their gaming prowess in disciplines such as shooting games like Counter-Strike: Global Offensive, which is sponsored by leading companies (with nine-figure prize pools for top-placed players), to RPGs and MOBAs (multiplayer online battle arena games) such as League of Legends and Dota 2, which have similar structures.

Try casting your eye over the upcoming League of Legends Worlds Champion online, it’s a really big business! There are thousands of people watching every single match, players getting the opportunity to win insane prize pools, and some very big-name sponsorships are getting involved too

But that’s only the most obvious application of blockchain and Bitcoin: there are dozens more ways blockchain will transform how we interact with money and financial services. Here are a few of those:

  1. Everyday spending. Blockchain puts ‘pockets’ in people’s power by giving individuals greater control over their financial dealings. Blockchain-based digital ‘wallets’ give users the ability to directly and independently manage their financial transactions, without needing to depend on a banking system. For people unable to access ordinary banks, this is a very powerful new tool.
  2. Supply chain management. Blockchain provides a secure and traceable means to track the origin and ownership of physical goods as they traverse global supply chains, enhancing traceability and reducing issues such as counterfeit products while streamlining the logistics industry.
  3. Fractional ownership of assets. Blockchain could allow fractional ownership of high-end assets such as real estate or artworks. You could share ownership of a rare art piece or a patch of virtual land in a metaverse platform. Blockchain can divide assets into smaller pieces so that they become accessible to many more people.

Despite its infancy as a technology, blockchain is a fascinating catalyst for change. If blockchain continues to develop at a rapid pace and gain mass adoption, we’re likely to see many more evolutions of its use in other domains. But, it does require a bit of scalable solutions, regulatory frameworks, and user education to make this possible.

Blockchain technology has the potential to become next-gen money – and could change the shape of financial activity altogether, creating a safer, more transparent, and more globalized financial world – and we’re very excited to be witnessing this journey.

Some major challenges lie ahead, but the benefits might be significant. It could transform object-based money, such as in-game economies, and achieve what other forms of money have struggled to do by putting spending power in the hands of consumers. 

Via: 2Usethebitcoin.com

Share this article:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The reCAPTCHA verification period has expired. Please reload the page.