Many people have heard of cryptocurrencies at this point. However, for many, there is a vague understanding of what cryptocurrencies are part of, which is a digital economy. The ideological foundation of the idea is that with the rapid spread of technology, there can be a global currency and a more democratic financial system as an alternative to the current system dominated by the large banking industry.
When it comes to the concept of a large decentralized monetary system, the major concern is how to ensure that the system is not taken advantage of. This is where blockchain technology comes in. The best way to think of blockchain tech is to imagine a block that is connected to another block. These represent two parts of a financial transaction. Now imagine that connection is added to another block and another billions of times over. This would be the growth of a digital financial system.
The importance of blockchain technology cannot be overstated, as it provides security and transparency in a system many people are new to and thus are wary about. The term “shuffle paperwork” describes making a financial transaction difficult to track by layering it through hundreds or thousands of administrative paperwork. Monitoring such transactions is extremely challenging and is a tactic used to overwhelm by sheer volume any attempt to monitor the transaction. Blockchain technology is built to defend the digital economy from the online equivalent of such a tactic.
At the most basic level, blockchain technology is data storage and sharing. It’s a digital ledger that can be accessed by any interested party, facilitating transparent business interactions. When you consider the pace of the growth of cryptocurrency, it’s easy to understand the value of researching and developing blockchain technology. As larger and larger companies and corporations switch to more cryptocurrency use, there needs to be a robust infrastructure set in place to monitor and connect the billions of financial transactions that will occur. Institutions such as the Blockchain Technology Development Institute (BTDI) are essential to the funding and innovation pouring into the field.
The BTDI aims to bring in the most talented young developers, programmers, and thinkers to the development of blockchain technology. Through the platform 2x.energy, the BTDI recently offered a $20,000 grant for students who can develop the most innovative blockchain development. Many young, talented students are traditionally drawn into the established financial system, where their talents are wasted, and any idea that is too innovative is copyrighted and shelved. The goal of the BTDI and other institutions like it is to incentivize people to bring their talents to a global digital world that values innovation and big ideas.
Developing blockchain is more than technological programming to handle vast volumes of data. It’s also developing security standards and safety protocols; it’s about educating people about the alternatives to “traditional” finance and developing the digital finance structure to a point where people have the freedom to manage their finances without banks and financial institutions manipulating the system for their benefit. Each day, the concept of a decentralized, global economy becomes clearer and more developed. Now, it’s time to spread the word.