Friday 24 March 2017

Blockchain Is Reinventing The Financial System

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.

Want to know more  what is YouCoin?

Visit Website: https://yocoin.org  

No comments:

Post a Comment