Recent macro events across the globe, combined with fragile financial systems, have caused mass economic uncertainty and a decline in financial freedom. It's times like these that remind us how important blockchain technology is, because it's the technical and economic foundation of the crypto industry and Web3.
The global and collaborative nature of building out blockchain solutions does not adhere to geopolitical divisions or borders. The technology itself is considered by many to be the solution that will lift the world out of its economic shackles.
7 Best Use Cases for Blockchain Technology
- Transparent & Auditable Ledgers
- Distributed Computing
- Hack Resistance
- Censorship Resistance
- Financial Privacy
- Cross Border Payments
- P2P Marketplaces
What the blockchain industry is trying to create is an alternative financial system that creates a new economic power, controlled by code and distributed to people without regard to financial or geopolitical status. This vision officially started with Satoshi and has been kept alive by an avid 24/7 free market and hundreds of crypto startups.
When FUD is at its highest, often during economic instabilities, wars, and elections, you will likely hear that cryptocurrency is only used by foreign interpolators and terrorists (1000% false). But what many of us are trying to build is a fair and open global economy.
Quadency as a company and all its individual team members are not just here to build crypto trading tools. It’s our vision to give fair access to as many people as possible to the tools necessary for financial freedom and prosperity.
Today, we strengthen our resolve, remind ourselves of our place in this decentralized universe, and share with those new to crypto the seven most poignant reasons why we will continue to build out blockchain tech.
1-Transparency - Open public blockchains like Bitcoin and Ethereum feature a fully transparent database of transactions. While those people transacting on the blockchain generally have their personal data shielded, the permanent record of transactions is always available and can be analyzed to track criminal activity, such as with Chainalysis detecting The DAO Hacker. Additionally, the openness of blockchains leads to easy auditing and enhanced reporting capabilities that freely access 24/7 real-time data. Anyone with an Internet device may view the live ledger of a public blockchain.
2-Decentralized computing - Blockchains are distributed ledgers, meaning their maintenance and storage is handled by thousands of nodes (computers running the software) instead of one centralized entity. This makes them a very unappealing choice for hackers. To hack Bitcoin, they’d need to hack over 14,600 nodes. The Ethereum Virtual Machine is currently maintained by over 3.8 million nodes. Additional solutions, such as Filecoin (FIL), enable people globally to share their computing space to help run and secure a blockchain network.
3-Hack Resistance - Bitcoin’s use of the SHA-256 hashing algorithm ties each and every Bitcoin transaction together. To alter, delete, or reproduce one transaction would mean to alter every transaction ever created on the blockchain (at the time of writing, over 700 million). Doing so is economically infeasible and would be instantly detected by nodes that are financially incentivized to follow the codebase rules and deter attempts to change the blockchain.
4-Censorship resistance - Bitcoin has been described by most digital asset experts as “censorship resistant”. Since Bitcoin has no CEO and is simply a free software that anyone can download and use, it offers zero opportunity for central banks and governments to intercede. No government or central bank had the ability to censor the flow of millions in Bitcoin donations to the Ukraine government, for instance, when donations are accomplished in a P2P manner. In fact, payments such as these only take a few seconds and cost pennies and have the ability to be sent and received without crossing into the legacy banking system.
5-Financial privacy - Without financial privacy, our financial security is threatened more and more each day as the Internet grows and our day-to-day finances, shopping habits, and investments become digitized. But do we want to be constantly providing our name, address, phone number, financial information, and IDs to all the apps and devices we use for payments and transactions to satisfy KYC requirements? Identity privacy tools like Zero Knowledge Proofs enable blockchain-based applications to verify the personal data of someone without sharing or storing it. Privacy coins like Monero (XMR) and ZCash (ZEC) provide a system of money where financial privacy is the default.
6-Cross border payments - Blockchains are maintained on a global 24/7 basis and have no geographical restrictions. Due to their peer-to-peer (i.e. cell phone to cell phone) capabilities, they provide a much needed solution for cross border transactions, or remittances. Bypassing 3rd parties such as Western Union means that money sent home to family is accomplished instantly and without any 3rd parties and their accompanying fees (small blockchain network fees apply). Additionally, unbanked people who do not have access to the legacy financial system are no longer left out with crypto as a solution.
7-Global peer to peer marketplaces - Sending cryptocurrency wallet to wallet in a P2P way is only the tip of the iceberg. Entire markets for DeFi lending and NFT marketplaces have exploded providing hundreds of new ways for people anywhere to trade and transact with each other. You can put down crypto as collateral and get an instant DeFi loan, or earn APY in tokens for providing liquidity to the Uniswap DEX. The NFT industry has been expanding at breakneck speed as art, collectibles, ingame assets, and many other digital properties are now available on blockchain-based marketplaces.
Quadency will always be here to bring you the best of blockchain’s most world-changing financial tools. More than that, it’s our mission to simplify the entire crypto trading experience so that as many people as possible can access the freedom-inducing features of cryptocurrencies.
- Meet Quadency’s Simplified Wealth-Building Tools
- Discover 10 Terms to Know Before Trading Crypto
- Learn about QUAD tokens and start staking!
Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.