Trade in cryptocurrencies has been booming for several years. More and more people are fleeing to the alternative financial market and investing either in tangible assets or in Bitcoin and Co., which has attracted a lot of attention as the blockchain technology behind cryptocurrencies. In the economic sector, this technology could bring some benefits and help save costs and time and make data traffic more secure. Because blockchain is a decentralized technology, this would cause banks and central servers for storing transaction data and business data packages to become redundant. However, this advantage is exactly why the introduction and comprehensive approval of blockchain technology in the German economy and finance is proceeding only at an extremely slow rate. For a long time, politicians have spoken out in favor of centrality, whereby the innovative technology was initially pushed to the side and practically only used on the alternative financial market – for the transfer of cryptocurrencies.
Times are changing, because already today those responsible have recognized how important the new technical revolution is and that blockchain will occupy a primary position on the financial market and in the overall economy of the future.
The guarantee and security of data against falsification
It is a fact that all systems with a central storage structure are faced with a huge problem. If a system is attacked, hackers secure all data and have the opportunity to make traces and content, such as sums of money from accounts, vanish or change them. The blockchain does not offer the possibility, which makes this technology a forgery-proof segment with a decentralized structure. In the case of blockchain-based financial transactions, the data of the individual user is not stored at a stationary bank, but as a copy in his own virtual space. Large servers, the rate of human error in processing, paths and times are shortened. A further advantage of the blockchain is the continuous expandability of data records, in which all newly stored data is directly linked to the previous block and thus enables complete traceability. The fact that politics has long resisted the blockchain and has not recognized its true value stems from the fact that the technology is viewed solely in connection with cryptocurrencies. These cryptocurrencies are the proverbial thorn in the side of conventional banking, which is why the technology behind them – the blockchain – has also been neglected. A reorientation is in sight, since the political community has now also recognized the macroeconomic merits of the blockchain and why it is a forward-looking option that increases data traffic security compared to conventional technology.
Why the blockchain can’t be stopped
In other countries, the blockchain has become an integral part of the storage of customer and patient data, due to its performance in preventing corruption and manipulation. Of course, this technology will generate noticeable changes in the economy, in this case explicitly on the financial market and in the banking sector. Decentralized vs. centralized, automated vs. manual – the advantages are obvious and show how important and efficient the blockchain has become when put to comprehensive use.