Blockchain currently offers three main advantages over conventional banking which augurs well for the future of Blockchain. The first advantage is that financial transactions are carried out much quicker than they would normally do when there are third parties involved; such as the bank.
Conventional financial transactions consume a lot of time as they travel through third parties. Although we may not be aware of it, as many as ten entities may be involved in the transaction, exchanging messages, reconciliation, or security which means the seller receives payment only after days.
Blockchain decentralises everything and thus eliminates the necessity of a third party which would slow things down considerably. It can do transactions in seconds which if done conventionally, would take three or more days to complete. It records and locks transactions and users can access the full historical data easily.
In this way, it offers greater transparency compared to the more secretive traditional banking sector. It also eliminates the commission for the middleman, also known as commission which could mean that a global enterprise may end up paying as high as $25 for a transaction. With Blockchain, the costs are kept low as there is no commission involved.
Blockchain also accelerates transactions which reduce the costs involved. It renders third parties and their charges unnecessary. Therefore, businesses that do multi-nation transactions stand to benefit.
When it comes to politics, wherever we are in the world, it is common knowledge that the system of politics, has some questionable ethics especially during the election processes. The Electronic Voting Machine ballot that many countries use and trust to select politicians is vulnerable to hacking, but thanks to Blockchain tech, electoral bodies can now deter anyone from meddling with citizens’ democratic rights and responsibilities.
Rigged votes and “voting irregularities” could be a thing of the past, and so could the threat of rival governments or terrorist organizations hacking votes. Voting systems secured with blockchain technology would be completely unhackable.
From voter registrations to verifying identity to tallying votes, the system would be indisputable. Gone would be the days of recounts and “hanging chads.” The good news is that many nations have already begun researching blockchain voting and Estonia is one of the pioneers.
As we are aware, despite their eligibility and possession of a voter registration card, too many citizens don’t vote. This is becoming alarmingly more frequent as the years go by. Of course, the voter has many reasons for not voting namely long queues, no time, apathy, etc.
These obstructions can be overcome instantly by using Blockchain voting. Once e-voting is enabled from smartphones or desktops, voters will be able to cast their vote from anywhere within minutes. This would increase voter engagement and, thereby, result in a stronger democracy. This would solve the problem of so many people not going out of their homes to vote.
The advantages of Blockchain through banking and also politics are endless. As time goes by, more and more advantages are being discovered propelling us to a brighter and more efficient future.