This article is penned by Jim Conners. Jim Conners is a Blockchain enthusiast and evangelist based in Portland, Oregon. He is a freelance journalist and his articles have appeared in top Blockchain media all around the globe.
Since the invention of the internet the idea of decentralization has always been at the forefront. Few people seem to know that the internet was originally developed by the American military and one of the goals was for the network to be survivable. Even if the worst case scenario were to arrive, the military wanted the predecessor of the internet to be able to continue functioning - even if it were in a diminished capacity.
So, from the very start decentralization was critical to the development of the internet. Centralized structures and hierarchical network architecture would make the young internet far too easy to cripple or destroy. So the military engineers developed a system where there was a bare minimum of centralization and everything that could be decentralized was decentralized.
However, the internet was only a military instrument for a short period of time.
The fire rises
First picked up by scientists and then later by tech enthusiasts and hobbyists, the internet remained the domain of people committed to decentralization and the easy spread of knowledge and communication. And as more industries moved online the very nature of the internet began to decentralize them.
One of the first things to be totally decentralized was communication. IRC, USENET, and more provided the freest space for communication the world has ever known. Following communication came the news.
What did these two things have in common? They were constantly oppressed and controlled by governments the world over. However, the internet has proven to be a tough bull to wrangle and people that want to speak freely and report freely moved online.
Communication and reporting in general have both profited heavily and are slowly becoming as decentralized as possible (much news nowadays is reported first on social media and hours later by the ‘real media.’)
But in this era of decentralization, when everything important that had been for so long oppressed is finally escaping the cunning clutches of oppressive regimes, they hold one last bastion.
Storming the castle
Personal banking still remains heavily centralized and controlled by relatively few players. One of the reasons is because governments so effectively hold onto control of finance, money, and assets within their borders.
And the only reason they retain this control is because the government issues money and the government backs money. Without the government, (fiat) money is worthless as it isn’t actually backed by anything of real value.
And so long as the nation controls the currency, the nations control the finances of all citizens and non-citizen residents.
And because the nation needs this money to stay inside the country so it can be taxed, finance tends to be one of the most restrictive areas insofar as individual rights.
But with cryptocurrency this is changing and personal banking is finally decentralizing. Why? Because it cuts the control structure off at the root.
When currency is decentralized, finance is decentralized.
Decentralized banking puts you in charge
Cryptocurrency has caused a seat change in banking. Because people can remain anonymous and secure, it requires a whole new kind of system to manage crypto finance.
This has led to something spectacular - the new system (cryptobanking) frees you completely from the restrictions of the old one.
Borders are meaningless with cryptocurrency as they don’t exist online. A transaction between a user in NYC and another in LA is no different from a transaction between one in Beijing and another in Frankfurt. The system is totally decentralized and the power rests with the person holding the money not the person printing it.
A new world order for personal banking
Take Datarius - a startup cryptobank that makes full use of the benefits of cryptocurrency. As a cryptobank, Datarius will let you choose the services you’ll use (there’s no required service to be used for each country as is the case with old banks), and money transfers will not be obscenely taxed or subject to unnecessary fees, and cannot be forbidden by an oppressive government.
And perhaps best of all - It’s impossible for fees to be hidden on the ledger. You’ll know exactly what every transaction, purchase, or action will cost. Hidden fees won’t sneak up on you anymore. In the new world of cryptobanking, your bank can’t ask extra money from you because you’ll see it coming - everything is visible on the blockchain, after all.