In 2009 Bitcoin was launched by a pseudonymous individual or group known as Satoshi Nakamoto. Over 10 years later, Bitcoin’s launch has resulted in an entirely novel and innovative industry that promises to revolutionise the way that we live. In this article, we’re going to explore some of the exciting real-world use cases that are ripe for cryptocurrency and blockchain disruption.
1. Fiat Currency
Easily the most well-known use case that is currently being disrupted is fiat currency. Current problems that exist with fiat currency include high fees and long wait times for simple transactions such as sending money abroad. These high fees and long wait times exist due to the numerous middlemen that are involved in executing an international payment. Cryptocurrency and blockchain technology aims to solve this problem by removing the middlemen. With cryptocurrency and blockchain technology, users are their own banks and can send digital currency anywhere in the world instantly and with low fees.
2. Decentralized Finance (DeFi)
There are numerous problems that exist in the traditional financial system. We explored one of those problems above – high fees and long wait times associated with sending money abroad. However, the traditional financial system is a behemoth, and includes other areas of finance such as lending. DeFi refers to a growing number of open-source software applications, primarily built on Ethereum, that are intended to serve as financial protocols upon which individuals can perform day-to-day financial activities on i.e. lending. DeFi aims to build a trustless and decentralized financial system that solves the problems that exist within the current traditional financial system.
The emergence of cryptocurrency and blockchain technology has also introduced the notion of decentralized smart contracts, which are self-executing contracts that allow for agreements to be enforced in a trustless manner, thus, removing the need for a middleman. The development of smart contracts promises to disrupt the way in which the law is practiced and even taught, including LSAT course providers in the US and SQE course providers in the UK. It may even lead to a world in which lawyers require a coding background in order to fulfil client needs effectively. Regardless, blockchain technology promises to disrupt an industry that is infamous for being resistant to technological innovation.
A key value add of blockchain technology is its ability to remove the need for middlemen. This simple value offering can have wide-ranging applications to industries such as the sharing economy. For example, a decentralized network removes the need for centralized entities such as Uber and Airbnb to oversee and maintain sharing economies. Another example is the music industry, with blockchain, artists can sell directly to their fans instead of having to go through labels and publishers.
These are just a few use cases that are seeing significant disruption with the development of blockchain and cryptocurrency technology. The list of use cases will likely grow as the industry becomes more mature. Given the level of innovation we have seen in the last 10 years, one can only guess just how different things will be in the next 10 years!