Is Cryptocurrency A Force For Good?
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Bitcoin Pizza Day happened on May 22nd. This commemorated the very first transaction for Bitcoin that was completed in 2010. Laszlo Hanyecz exchanged well over 10,000 Bitcoins and in return, got two large pizzas. The amount back then was worth around $80 but now it is worth well over $70 million. Facilitating the purchase of a cheese tomato based food really is not what Satoshi Nakamoto pictured when he brought out Bitcoin in 2008 but the fact is that it has come a long way since all of this happened. Sure, it’s impossible to know this for sure and the main reason for this is because Satoshi Nakamoto has remained both anonymous and even silent ever since he established the currency. This currency has created more than 1,500 other currencies since and the value of these coins has expanded on a huge basis. Even now, in the very early stage of development, some would call it the 1994 era of the internet. There are examples all over the internet on how the internet can be used for good, and the same is happening for cryptocurrency right now.
Of course, we have already seen that social impact solutions and anything else would not be possible without the technology that is present. On top of this, the sustainable transfer and even the aid of providing a secure government service is very appealing. When it is applied to the right cases, it is very easy to see how cryptocurrency can benefit certain industries and it is incredible to see how the internet has helped to facilitate this. When you look at the way that the internet has connected people, it’s very easy to see how people are so enthusiastic about Bitcoin and it is also very easy to see how the whole thing has come together as well. When you look at the white paper for Bitcoin, you will soon see that a peer to peer version of the cash would give people the chance to make online payments and all of this could easily be sent from one party to another. The benefit of this? That it would not have to go through any type of financial institution.
The white paper posit has stated that no mechanism exists to make any form of payment over a channel that is purely intended for communications. A trusted party always has to be involved. On top of this, when an electric payment system is made, it is all based on trust and two willing parties would have to transact directly with one another without the need for another third party at all. Transactions are computationally very impractical and they would actually reverse seller protection from fraud and even from routine escrow mechanisms as well. This could easily be implemented to try and protect buyers and it would also help them to stay safe as well.
Bitcoin and even the more advanced cryptocurrencies have all helped to solve a number of issues and they have all been outlined by Nakamoto. This has lead even sceptics to concede that this currency could in fact be the future of money in general. It has a built-in safeguard against both fraud and identity issues and this is all down to the blockchain ledger. This technology would underpin Bitcoin and it would also offer a much higher level of transparency as well. On top of this, you would also have much lower fees for any transactions that are done across the country. This means that it is free from government interference and cryptocurrencies really have started to transform the way that payments are made so far. They have even done this in new and emerging markets, and that is incredible to say the least.
On top of this, it is estimated that there are around 2.2 billion people who have access to the internet via their own smartphone or any other device. The problem is that if you do not have access to a traditional or even a financial exchange then you would be in fact a prime target for the market.
Ian Bradbury is trying to develop a social value case for stored value and this is done in the form of an identity. Although you may not see the idea of identity being a cryptocurrency, it certainly does have value if you own the product as an individual. It would mean that it can be shared with others so that the primary owner could access a ton of services. This could include the border control, the right to work, healthcare and even education as well. Now there are many, very basic forms of identity management in place to try and help refugees, and that brings us on to the next point.
Jimmy Nguyen is a chief executive of NChain. He has continued this theme by saying that cryptocurrency will be able to achieve a much greater financial inclusion for those who are in developing countries. He has also stated that they have unbanked populations who have very limited access as well. They cannot save, or send money but if they were able to have a digital wallet on their phone then these people, who are known as being unbankables, would then be able to have their say in the digital and financial world. The best thing about this is that they would be able to send currency across the world with mere pennies, rather than having to pay fees that would cost around 8% of their total transaction. They would also be able to buy goods and even participate in online ecommerce as well. Cryptocurrency would be able to give those people a much higher level of financial inclusion when it comes to their own developing countries.
For example, five years ago, more than a third of Kenyans were able to sign up for a Bitcoin wallet and this was being offered by a revolutionary money transfer system. It was also done as a micro-managing service. On top of this, Kenya is the fifth on the list when it comes to Africa’s gross domestic product. Nigeria is two places behind and Russia is in the top 5%. By comparison, when you look at America’s market share of Bitcoin you will see that it is 0.17% but even in the emerging markets, you will soon see that it is not unburdened by the legacy of the financial system in general. Bitcoin is also not the only currency that has benefited societies in general. After all, Blockchain.com worked out that the average transaction took around 78 minutes. Of course, newer and more advanced currencies have come out since and they have also been developed for specific-use cases.
Digital assets can be a brilliant tool for good, and this is something that Laszlo Giricz, the founder of Poseidon has stated. The company Poseidon is a non-profit organisation that helps forest conservation. The organisation uses a smart contract and they have managed the entire life cycle of carbon credits. They have also created a utility token and this is called Ocean. This facilitates the investment and even the establishment of carbon credit transactions. The currencies that seem to enjoy the most media attention, for example, Bitcoin are much more akin to the commodities such as gold when compared to anything else. Controversially, tokens, or even utility tokens are really able to give access to specific services and they cannot be used for any other services.
Poseidon joined forces with Ben & Jerry’s Scoop Store and they are based in London. The idea is that every time someone bought some ice-cream, the company would then try and rebalance the climate change process. The consumers have even been invited so that they can try and match the pledge. They are taking the chance to make things right and they are doing everything they can to try and exceed it. So far, in four weeks they have been able to conserve an area that is bigger than 100 tennis courts and they have also used the micro-donations that they have to plant over 1500 trees.
Other cryptos have enabled a much bigger and greater investment through a ton of innovative projects. A lot of people have stated that this is crowd-funding for the next generation and that they are able to raise twice as much money by doing this. They have stated that all of this is due to the fact that so many growth companies and so many contributions are helping start-ups to raise money and this is all down to cryptocurrency.
On top of this, Luke Chittock, who is based in Kent owns the Lifelabs organisation. They donate 30% of all of their money to charitable contributions and he believes that if smart contracts were enabled then this would help companies across the world to achieve anything at all.