How Blockchain Technology is Rejuvenating Free Trade
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Problem faced by the governments world wide
Today more than ever, world governments are seeing the effects of Crony Capitalism. Special interest groups lobby politicians and make substantial monetary contributions to bolster and secure these public legislators’ positions. In turn, policies are created benefitting those businesses. The transference of incomes and wealth are gained by the few and taken from the many at serious costs. Consequences of these actions are significant losses in efficiency and productivity, slower long-run economic growth and the public’s growing mistrust in their political representatives.
Role of internet
The internet and industrial science have broadened the scope of marketing worldwide giving just about everyone a level field of competition through blockchains. The power of this technology is decentralization. A blockchain or distributed database/ledger contains an ever-growing list of transactions by way of blocks.
The ledger is shared among a vast network of computers while advanced cryptography keeps it secure, private, and decentralized allowing each participant to interact with the ledger in a secure way without the need for a central authority. A growing list of records (blocks) are maintained, time-stamped and are a link to the previous block.
Transactions are stored in a system that cannot be diluted by politics, over-supply or altered in any way by third parties.
How Blockchain Technology works
Blockchains are a publicly accessible system, owned by no-one entity and cannot be closed down or censored by anyone. Because information is linked, recorded and cannot be changed or altered within it, the transparency lends to better assurances for investors opening the door of more opportunities to smaller businesses. Entrepreneurs would be able to compete on a more even keel in the global market because there are no special entitlements or political relationships to influence it.
Financial institutions are already implementing blockchain technology. More blockchain companies have been established as the advantages of this technology are being realized and improvements discovered.
There will be a change in capitalism as we are seeing it today as blockchains enable a new relationship between producers and consumers. As this digital technology continues to grow and improve, we will have the opportunity to dramatically change how business, society and government work together to rebuild some of the many crumbling economies at home and around the world. The alliance of lobbyists and politicians has directly affected the demise of the true free enterprise. Blockchain technology is an avenue to what can be considered more of a “free market” than what has been the standard created by crony capitalism.