Blockchain: Democratizing the Global Digital Economy

braincubation (25)in #pi • 4 years ago

Blockchain is changing the global economy and the way we view money. It is a digital financial channel based on a distributed ledger technology, that has the potential to replace money and outdate banks and financial institutions.

The most popular blockchain based project is Bitcoin, and the rising challenger is Ethereum, (a more promising solution that large enterprises are beginning to explore). Think of bitcoin as a diamond, which does not really have any practical use, but rare. Now think of Ethereum as a programming language, that you can use to build other programs. These virtual monies uses electronically recorded transactions between two parties in a verifiable and permanent way to transact financial deals, eliminating the use of money and banks.

According to World Bank, over $430 billion U.S. dollars were circulated in the last two years using blockchain mechanism. With this technology, there is no concept of a middleman (banks or financial institutions) in transactions. Digital wallet applications in a blockchain let users to purchase products using bitcoins and other digital currencies; this is equivalent to your credit card in an app, minus the banks as intermediaries.

Unfortunately, there has been a lot of controversies surrounding bitcoin recently because of the high amount of energy it requires to mine it. For the same reason, Ethereum is rushing to migrate to a PoS (Proof of Stake) consensus; a minting model -- instead of the traditional mining (based on Proof of Work that requires a lot of computing power).

Introducing a new contender in the Crypto space -- Pi Coin: The Cryptocurrency You Can Mine On Your Mobile Phone