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Financial Globalization: Major Impact of Blockchain Technology in Growing Countries

Financial Globalization: Major Impact of Blockchain Technology in Growing Countries image

Blockchain, the technology that has taken the world by storm, is not only utilized in highly developed countries but also underdeveloped ones. The benefit it possesses does not only cater to the people of the developed countries but goes beyond race and status. It is the technology that has conquered the hearts of a lot of people.

 

Blockchain, which rose to fame because it was the technology underlying Bitcoin, is a distributed, decentralized, public ledger. Learn about blockchain here.

 

This technology has been termed as the most disruptive technology since the internet. Many believed that it is the next General Purpose Technology (GPT) succeeding the world’s most innovative inventions like steam engines, electricity, and the Blockchain which was developed by Satoshi Nakamoto has been widely used in different countries in the world especially in developed ones. But this doesn’t mean that the underdeveloped countries are left behind.

 

Impact of Blockchain in Underdeveloped and Progressive Countries

Many underdeveloped countries such as Bangladesh and India are utilizing the technology. It is believed that this technology would bring insurmountable benefits to these countries.

Combat against Corruption

Corruption is rampant in the government of underdeveloped countries. It is treated as a normal occurrence. Many politicians squandered the money of the public without shame and fear of being caught.

 

They believed that because they are in power, no one can touch them thus they are so adamant on pocketing the money of the general public. Thankfully, blockchain can help root this unscrupulous practice. Due to its decentralized nature, blockchain can produce immutable data that would provide security and transparency- a vital tool to combat corruption.

 

Bank Service Inclusion

In developing countries, having a bank account is not a requisite. Simply having cash is enough since it is what they commonly use in their everyday transactions. Some are afraid of the idea of going to a bank with the fear of prejudice because they don’t look presentable enough.

 

Furthermore, many believe that having a bank account is only for those individuals who have extra money for savings. With blockchain, these issues could be addressed because blockchain does not require physical presence unlike those of normal banks. Thus, eliminating the fear of prejudice. Furthermore, bank service charges are also eliminated which means less cost for individuals.

 

Lesser Cost Energy

Electricity is limited in some developing countries, especially in remote places. In Bangladesh, a company named ME Solshare Ltd., has created a peer to peer energy trading wherein the people can use the energy from their solar panels for their personal use and trade their extra energy to their neighbors. With the use of blockchain, the cost of obtaining these energies will lessen because the third-party like energy corporations are eliminated.

 

Furthermore, since blockchain could record every transaction, it enables an individual to see where the energy he or she is using came from or whether it is produced via renewable energy systems or traditional ones.

 

Better Record Keeping

In developing countries, record-keeping is predominantly paper-based. Renewing business licenses or having any transactions in any organization is a difficult task. The cost of using a computer is high thus people often opt to use the manual recording.

 

This type of record-keeping is extremely prone to loss and damage. If the developing countries would opt to use Blockchain this problem will be solved. Although the cost is high, it is undeniable that it is worth it.

 

Mode of Payment

Most developing countries prefer using cash compared to any kind of payment. Blockchain could improve this. Many developing countries are going out of their way and are trying new technologies that are used in society today.

 

A school in Indonesia, although is at its early phase, is using blockchain to create an intra-university coin system to figure out if the blockchain could work perfectly as a mode of payment. If the system is feasible, there is an idea to implement this system throughout Indonesia.

 

Tracking Physical Goods

In highly developed countries, a glorified application of blockchain is the tracking of physical goods through the supply chain. Even a big company like Walmart is using this in their operations to make sure that their products and goods are safe. Using this in technology in developing countries would greatly improve the authenticity of their goods and products thus creating more trust and safety.

 

Final Thought

The need for the blockchain technology does not stop in the hands of highly developed countries. Countries throughout the world, no matter what is its standing, deserves to use a technology that would benefit its people and improve its operations. It has been a decade passed since Blockchain has been introduced to the world. Although it has its shortcomings, it could indisputably deny its great potential in many aspects and levels in life.

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