by Lumai Mubanga
The debate as to whether the rise and adoption of blockchain is a natural evolution or a consequence of revolution will be around for some time to come. While others contend that it is a revolution, others strongly feel that it is an evolution because change is inevitable.
One thing that stands out is that whether it is a natural evolution of technology or the result of a backlash against banks and other large institutions, blockchain technology developers are pushing for solutions that provide more transparency, more control, and more equality for consumers around the world. They want to enhance financial inclusion so that everyone can hold products that were previously only available to the rich and powerful.
The service delivery model seems to have elated millions of consumers around the world especially those disadvantaged by powerful conglomerates. The following are the reasons why many are elated.
The term ‘democratization of finances’ is used to imply bringing financial resources to the majority. For a long time, wealth has been a preserve of the rich and powerful in society. For most of the poor, borrowing money, insurance bonds and the general management of wealth has been a pipe dream. However, the coming of blockchain seems to have brought these services to ordinary people much more closely.
As mentioned above, financial wealth has concentrated in the hands of a few. Could this be broken up? Disaggregation is a term used to describe that action, dividing or breaking something apart. Blockchain technology service providers have begun to give clients better and quicker access to information. This has reduced the cost of doing business as well as increased options for investment. An example of this is the online cryptocurrency trading platforms that offer a variety of options for clients cheaply and profitably.
For a long time, many financial services have been provided through intermediaries who seem to have taken advantage and exploited many through higher commission charges. Disintermediation is a term that literally means removing or cutting off, of the intermediaries or agencies. Blockchain has just demonstrated that and the cutting off banks in many transactions has brought relief to clients. Peer-to-peer lending services and blockchain-based remittance services are now becoming popular and widely adopted.
The power to control and manage financial transactions has been in the hands of governments and banks. Decentralization of finances means the very opposite and this has given power and a measure of control to individuals and blockchain companies. However, blockchain is not controlled by a single, central entity but instead give control and power to many players simultaneously. The same decentralization has allowed many customers to exercise some degree of freedom and secured their identities when doing business online.
Blockchain seeks to remove a lot of biases from the financial system. This is meant to create a levelled playing field. The belief is that financial institutions have been too exclusive and closed off, and they are hoping that the use of technology can make finances easier to understand and accessible. Largely, this seems to be happening.
With all the point above, do you feel blockchain has been a product of natural evolution?