Currencies, Evolution and Blockchain. ‘Creative destruction threatens power. This is why disruptive innovations require new models of thinking to truly enable new technology to reach its potential in a competitive market.’ — Tim Wu, The Master Switch
It is an undeniable fact, nowadays, that in our everyday life we use different currencies irrespectively whether we realize it or not. Using it every day one would think that most people should be familiar with the creation process, how money flow is regulated, how amounts are increased/decreased and basic currency history. However, most people do not possess this knowledge. The need to retrieve a tradeable object has already been existent since ancient times. People traded shells, stones, etc. for a desired good. Hence, exchange transactions, and “currencies” were existing even then. However, in time people expanded their trading habits and territory and became more and more aware of the value and power of money and started to use it as a tool for manipulation on different levels.
That is one reason why blockchain is the most appropriate tool, allowing transparency and easily enforceable relation in an absolute safe environment where each one shares the responsibility with the whole community. In addition, the risk of inflation is reduced in comparison with FIAT currencies. Furthermore, there is no central organization, the blockchain guarantees that the contract could not be changed or manipulated.
Only trough contracts concluded in the blockchain will a legal transparency and enforceability arise at a very low cost. Contracts are not concluded via intermediaries or insurance companies, but in a direct way. The reasoning is simple- manipulations are excluded.
Digital currencies present a chance for rethinking decades-old business models with a new emphasis on asset creation, asset transfer, and integrity of data.
Dentacoin Foundation completely agrees and endorses the opinion of Jeanne Boillet (Ernst&Youngs Global Assurance Innovation Leader) that “Blockchain has the potential to transform our world, and for CFOs it has the potential to revolutionize the way the finance function works. By removing duplication of effort and unnecessary processes and by guaranteeing greater integrity of data, blockchain could lead to a more efficient and secure way of doing business than ever before…”
Also published on Medium.