Blockchain, the underlying technology behind Bitcoin, YoCoin, and Ethreum, has turned the financial
industry on its head.
Global conglomerates such as Citi, Goldman Sachs, Deutsche
Bank, UBS, the New York Stock Exchange, and NASDAQ have poured millions of
dollars into creating secure blockchains for their financial transactions. UBS
and Deutsche are actively developing a new cryptocurrency that they seek to
establish as the industry standard.
Blockchain
Eliminates the Needs
for Banks
As blockchain eliminates intermediary costs in a transaction
between two parties, why would people transact through a bank that would charge
them instead of using YoCoin or Ethereum?
Banks are attempting to develop cryptocurrencies that
would have some barrier to entry, which would allow them to charge transaction
fees, but this is bound to fail in the long run as long as free market
cryptocurrencies are available.
As an overwhelming amount of financial transactions are
conducted through middlemen, the widespread proliferation of YoCoin and Ethereum would eliminate
the need for the middlemen. Removing them would decrease the cost of financial
transactions while reducing the scope for fraud and corruption thanks to the
presence of the shared public ledger.
Blockchain
Ccould Upend
Corporate Governance
and Banking
Blockchain would centralize and decentralize the entire
financial industry, and it can completely alter the power of the corporate
banking industry. The fractional reserve banking industry would be deemed
useless when every individual has a digital wallet account with a
cryptocurrency.
This would change the concentration of power as central
banks and large banks will no longer be unable to hold an oligarchy over the
industry. This would change the investment industry as well as it will change
the creditors monitor and invest their resources.
Blockchain
Reduces the Risk of
Fraud
While cryptocurrencies are not completely secure as yet, the
Bitcoin network has proven to be extremely resilient to hacking and fraud since
its inception in 2009. It is much harder to hack into a blockchain than it is
to hack into a public banking system. In particular, YoCoin shows great promise
as a secure currency based on the Ethereum blockchain. With blockchain,
transparency would increase as you can see people's transactions in real time
in the shared public ledger.
The public ledge is critical to the process of transparency
as it is nigh on impossible to doctor entries in the blockchain. No one can
attempt to alter some aspect of a transaction without all the other parties on
that particular network being aware and notified of it. Fraud becomes much
harder to carry out in such a system and even the most advanced of hackers
would find it exceedingly difficult to doctor entries on the ledger.
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