Cryptocurrency is no longer just a novel concept in its infancy. Tokens from the decentralized financial system, supported by blockchain technology, are accepted by several major companies, including Starbucks, Whole Foods, and Microsoft. Not only does crypto have real-world applications as opposed to being just an investment vehicle, but it also has the potential to make the world a better place. In fact, it has already done so. The following are four benefits we have seen recently.
1. Greater Access to Banking in Developing Countries
There are more than 2 billion people in the world without access to a bank account. Many of these people live in developing countries without central banks or undeveloped banking systems. Decentralized currencies, such as Bitcoin or Ethereum, are not subject to institutional influence and can be purchased, used, and sold without a bank account or necessary paperwork. As long as someone has access to the Internet, they can purchase crypto.
2. Instant Money Transfers
Another benefit of a decentralized financial system is instant money transfers. Wiring money from one bank account to another, especially from one country to another, can sometimes take more than a week to clear. Conversely, cryptocurrency transfers are instant and do not carry any hidden fees. Transferring crypto even has advantages over using traditional online payment systems, as these are subject to government regulations and often carry daily transaction limits.
3. Reduction of Fraud and Increased Accountability
While scammers have sought unique ways to gain access to digital wallets, cryptocurrency transactions are safer and more secure than credit card purchases. Scammers can easily steal a person's credit card information via insecure websites, whereas every crypto transaction is safely transferred electronically and permanently stored on the blockchain. This benefits both consumers as well as vendors and sellers.
Moreover, because all transactions can be viewed on the blockchain, widespread adoption of crypto will hold companies more accountable and provide potential investors with more accurate financial information.
4. Support of Scientific Advancement
Cryptocurrency also promotes open and transparent collaboration, whether through crowdfunding in support of business ventures or the pursuit of scientific achievement. Blockchain technology ensures everyone equal access to real-time data and critical information that might otherwise be hidden by corporations and foundations.
Nano Vision, for instance, is leveraging the power of blockchain technology to promote scientific advancement. The company developed a platform that "incentivizes the collection and use of molecular data at a global scale using blockchain and a new crypto asset to share data and resources."