More Regulation, Less Scams: What the Future of Blockchain Looks Like
Blockchain technology has revolutionized government, finance, insurance, and personal identity security. By 2025, it’s predicted that corporations will be spending $20 billion annually on blockchain technical services. Tech giant IBM is investing more than $200 million in research and over 90% of European and US banks investigating blockchain options.
Although only taking the world by storm over the past few years, blockchain technology is already on its way to becoming a legitimate disruptor in a slew of different industries. So what exactly does blockchain accomplish to make it so popular?
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets across a network. An asset can be tangible (e.g. a house, car, cash, or land) or intangible (e.g. intellectual property, patents, copyrights, or branding). Anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Blockchain technology is revolutionary because it allows businesses to receive information faster and more accurately. It provides immediate, shared, and transparent information stored on an immutable ledger which can only be accessed by permissioned network members. Blockchain’s ability to track orders, payments, accounts, and production, while giving members trust and transparency into their transactions is what is makes it so groundbreaking.
One of the most appealing attributes of blockchain technology is its built-in smart contracts. Smart contracts speed up transactions by essentially providing a set of rules stored on the blockchain that are executed automatically and have the ability to define conditions for things like corporate bond transfers, or terms for insurance.
Although blockchain technology has arisen to rapid expansion and popularity, the space is still not without its problems, particularly with the incidence of crypto frauds like rug pulls and exit scams. Exit scams occur when cryptocurrency promoters vanish with investors’ money during or after an initial coin offering (ICO). DeFi rug pulls another type of exit scam whereby crypto developers abandon a project, exiting with investors’ funds by withdrawing buy support or Decentralised Exchange (DEX) liquidity pool from the market.
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Newcomer to the blockchain space Concordium believes that the blockchain world can rid itself of these issues and become a safer space by implementing accountability. Through its integrated ID layer, the company has designed a platform that increases privacy while also addressing the issues of accountability, trust, and transparency.
The platform was built under the premise that more authentication will lead to more user accountability, which will ultimately build more trust. Many other blockchains still have unclear anonymity guarantees making users believe they’re anonymous while their actions can still be linked back to them.
While regulations can promote identity, Concordium believes that one of the most critical problems it can help solve is accountability. Users who use Concordium’s technology will be completely private and protected unless they abuse the system. It ultimately aims to encourage users to act responsibly or face the consequences of their actions.
Blockchain technology has provided a groundbreaking solution for many industries, but there are still many flaws that has led to nefarious activity like exit scams to occur. As the technology grows and evolves, newcomers like Concordium can pave the way for a safer space by introducing regulation through identification, trust, transparency, and accountability.
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