Most consumers already have a basic understanding of blockchain technology because of the abundance of cryptocurrency-related material available online. By virtue of being a decentralised financial instrument, blockchain technology, which forms the foundation of cryptocurrencies like Bitcoin and Ether (Ethereum’s cryptocurrency), is appealing to the common person.
In essence, cryptocurrency is money not controlled by any government, central bank, or bank in general, making it immune to manipulation by those organisations. It is a peer-to-peer (P2P) technology that completely avoids governments and central banks. This opens the door to a wide range of non-financial applications that have the potential to transform our way of life completely.
An Introduction to How Governments Are Reacting
Let’s look at a few of those non-financial applications of blockchain technology before examining some of the factors causing governments worldwide to have such a negative outlook on the matter. The ramifications are obvious if you take their rhetoric seriously. Governments cannot exert control over anything not governed by their laws and regulations or valued according to those values, such as money.
Just for a second, think about Ether. The government cannot control something that is a global currency and not a national fiat. They are unable to instantly alter a country’s economy by printing money. View the Ethereum Price Index changes, for instance, throughout a 24-hour period on OKX.com. Ultimately, those costs fluctuate depending only on customer supply and demand. Which government would advocate for a currency that they have no control over?
A Few Notable Non-Financial Uses
Blockchain technology is a collection of ledger entries spread across a vast global network of hundreds of thousands to millions of machines. Although ledger entries may be tracked, access is impossible without a secret key. This would almost end the current problem of product counterfeiting. For instance, fake drugs. A counterfeiter would have to access at least half of all those computers at once to hack a prescription drug, which is impossible to do because every ledger entry is authenticated and entries are dispersed across potentially millions of computers worldwide.
So, verifying goods and intellectual property would be some non-financial purposes. Because the data in those digital ledgers would be immortalised in cyberstores, it would be a huge advantage in real estate. Blockchain technology would establish an unquestionable record of ownership, which alone might prevent the yearly legal expenses from costing most countries more than their national budget.
Giving You Something to Consider
If you’re still unsure about the extent of blockchain technology’s nonfinancial applications, think about these effects:
- Pharmaceutical companies
- Online IDs
- activities of federal governments
- organisational designs
And there are many others, making practically every element of our life transparent. Transparency is the cornerstone of blockchain technology’s non-financial applications. There would be no more space for discussion if you questioned the veracity of some of those assertions. You would discover that in the blockchain if it could be proved.