Editor’s Note: This Is Part 2 of the CCN series, “Peace & Stability Through The Public Ledger.” For Part 1, click here.
In the first part of this series, we examined the ways in which changing political postures of global citizens, and the history of IBM, helps paint a picture of the world in which blockchain operates. As we wrote:
The legacy corporations now working in the blockchain space – keystone financial institutions and technology multinationals – have a long history of promoting peace and stability on Earth. IBM, which is “all in on the blockchain”, outlines the sort of moral and business fortitude needed to define the evolution of distributed technology.
There are still various other examples in which individuals believes blockchain technology can usher in a more peaceful society. While Bitcoin could do wonders for the unbanked and underbanked, it could do the same in other areas, like humanitarian aid, electric vehicles and welfare.
This week, we look at the ways in which blockchain technology could promote peace and stability through payments and finance.
An undeniable example of distributed digital currency’s potential, BitWage represents a new paradigm for how workers receive wages. Using Bitcoin, the company foresees a day in which workers are paid much more frequently than the common two-week or four-week time frame. BitWage, in an age when investing in employees, is less a norm than would-be employees investing time in their potential employer via internships, pushes a radical concept.
Of course, PayPal theoretically makes such arrangements possible, if the receiver has the PayPal debit card. Blockchain technology could further the innovation by enabling more complex data, and thus transactions, to be associated with payments.
A simple shortcoming of Bitcoin includes how there can be no recurring payments done easily. A script could be written in the form of a digital contract, but because senders need to confirm transactions in Bitcoin, there is no way for websites like OKCupid to secure memberships based on recurring payments.
Blockchain in Finance
Continuing in the crypto-economic tradition of Bitcoin, R3 CEV, Digital Asset Holdings (DAH), Ethereum, Ripple, and Overstock have explored the ways in which not only can financial arrangements be made easier, but, in addition, transparent.
“We don’t think of bitcoin as being a store of value or an alternative currency or an investment,” Blythe Masters, former JP Morgan Head of Commodities and current CEO of DAH, envisages. We think of it as a medium for exchange and a mechanism for recording information.”
She added: “I have a deep personal commitment to the idea that we can ultimately restore confidence and trust in financial markets and I believe this type of technology can move us in that direction.”
Others see the potential for public ledger technology to streamline the know your customer and anti-money laundering procedures. Chris Kitze, CEO of Safe Cash, believes blockchain forward technology could improve these systems.
“A small mid-sized bank was talking to us about implementing blockchain,” he said at a recent Blockchain Conference in San Francisco. “The reason they’re going to use to justify it is they’re going to save on KYC. They’re gonna automate the KYC process. KYC is gonna go on the blockchain because it makes things very simple for consumers. You need to have that.”
Images from Shutterstock.