cryptocurrency

5 Ways Cryptocurrencies Helps Developing Countries

This article has been originally published in theripplecryptocurrency.com, to read the original click here.

Cryptocurrencies are changing the world in more ways than meet the eye. They have made transactions easier and safer, and the blockchain technology that allowed them to exist is now being used for more than just cryptocurrencies.

Among the most promising developments that have spawned from the cryptocurrency space are the ones that are taking effect in developing countries. Some people believe that cryptocurrencies have thus far functioned only as another game for wealthy investors. The truth is that many people in developing countries are now able to join global commerce in ways that they haven’t been able to before.

The biggest advantages that cryptocurrencies offer the developing world are increased access to money, the improved ability to send or receive it, greater access to ATMs and digital wallets, and a huge increase in transparency, which is sorely missing in many countries.

Cryptocurrencies are helping out developing countries in more ways than one.

1. Access to Banking

The World Bank estimates that over two billion people around the world lack access to banking services. There are several reasons for this, most of which center around poverty, but the end result is that these people are disconnected from global commerce. This is where cryptocurrency now shines…

There are many applications that allow you to open a cryptocurrency wallet and use it for banking purposes from your mobile device. Because mobile devices have proliferated in the developing world far faster than banking services, there is now a perfect opportunity for cryptocurrency to fill in a huge gap in international commerce. The end result is a higher level of inclusivity than would ever be found in traditional banking services.

2. Easy Transactions Over Mobile Devices

The accessible nature of cryptocurrencies allows you to easily complete transactions over your mobile device. It is now safer and easier to maintain a cryptocurrency wallet than it is to deal with banks and various financial institutions, which make international transactions difficult or costly.

3. Greater Transparency

Of all of the challenges holding developing countries back, corruption is one of the most persistent. Unnecessary bureaucracy and corrupt officials cause the ever-growing gap between the rich and the poor to persist, and even money that is set aside for the public interest simply goes missing on a regular basis.

The blockchain technology that enables cryptocurrencies to function comes with tools that make corruption impossible; or at the very least too visible to go unnoticed. The blockchain is an immutable ledger of all transactions. This means that every transaction is publicly recorded on a ledger and it can never be deleted.

This level of transparency makes unscrupulous activities difficult to get away with, while also allowing ordinary people to safely conduct transactions.

4. Greater Social Mobility

Despite the stereotype of cryptocurrencies being another game available only to the rich, cryptocurrencies offer a new solution to global income inequality.

One of the greatest setbacks to social mobility in the developing world is corruption, but as we have seen, that issue is tackled ferociously by cryptocurrencies and their blockchain technology.

Unlike traditional banking institutions, no physical presence at any specific location is required for crypto banking. Generally speaking, you just need an internet connection and a crypto wallet. Now some countries are seeing the rise of crypto ATMs, allowing any user to purchase, send or receive money from anywhere in the world.

Cryptocurrencies provide accessibility, transparency and clarity, three things that are often in short supply in many developing countries.

5. Easier Remittances

Every year, hundreds of billions of dollars in remittances are sent to developing countries. According to the World Bank, this figure stood at approximately $441 billion in 2016.

The remittance payment process has created a global industry that is seldom favourable to migrant workers and immigrants. Traditional remittance services such as Western Union collect fees and sometimes enact various different charges, making these transactions more expensive.

Cryptocurrencies have allowed remittance payments to be made in an easier and far more affordable way. Crypto transfers are conducted very easily, but not at the expense of safety. This is another factor that has made Bitcoin popular in developing countries. There have been new services emerging in developing countries, such as SureRemit from Nigeria, that are targeting the growing crypto remittance demand.

The Verdict

Cryptocurrencies have offered the world an alternative to the problems that come with traditional banking. These alternatives have extended to countries of all levels of economic development. It will be interesting to see how the world at large changes as a result of cryptocurrencies, but there is no doubt that they are also helping developing countries.

Share you thought with me in the comment section and express your opinion. Awareness and open conversation are the key for the creation of a better future.

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cryptocurrency

Concurrency and blockchain – revolutionizing democratic election

Block chain is revolutionizing democratic election. This article is originally posted at Coincentral.com . As part of series of articles in the subject. Here you can find the innovative block chain technology is going to revolutionize our health system.

There’s a reason why we have to go to a polling place to fill out ballots for our elections. Anonymous ballots are the easiest way to protect the integrity of the vote while also protecting voter privacy at the same time. Digital voting has been a difficult challenge because it’s tough to verify that each ballot is valid while also keeping them anonymous. Blockchain voting could change that with its cryptography.

Bloackchain and elections

In fact, blockchain voting is already changing some elections. Right now, military from West Virginia, USA who are serving overseas can vote in their home elections using their mobile phones. A combination of encryption and blockchain registry tallies those votes. Other countries like Brazil, Denmark, South Korea, and Switzerland are exploring blockchain voting. By far, however, Estonia is leading the way. Their citizens have unique ID cards that allow them to vote on the blockchain quickly and securely.

Digitizing the most essential part of democracy could have deep and lasting impacts on global governance. Citizens can make decisions much more quickly and public referendum is a feasible option. Representative democracy could get marginalized for direct democracy by the people. But that’s not all. Another result is rigging elections could become more difficult, nearly impossible. This article explores how blockchain voting works, and its implications for the world.

Fundamentals of Blockchain Voting

Blockchain voting is similar to analogue voting that we’re used to. The same concepts and processes apply. In order to cast a digital vote, a citizen would need to register and prove their citizenship in a given jurisdiction. We could then record that identity and citizenship on the blockchain associated with that user’s key.

Next, a citizen needs a ballot to cast a vote. In the blockchain, this would likely take the form of a special voting token that would be deposited in the user’s account. This token would also likely have a time limit in which it could be used to vote, after which it would burn itself via a smart contract or become useless.

Casting a vote on the blockchain would involve sending the voting token (the ballot) to a specific address. Voters would know which address aligns with which candidate or referendum. Sending a token to that address would represent a vote.

Technically, that sounds simple enough. The vote gets registered on the blockchain where its immutable, verifiable, and transparent. We can easily count up the votes to declare a winner to the election. In addition, we can build nice user interfaces that automate and hide the process of sending a token to a specific address. Instead, voters would see a simple online interface for them to select a candidate or proposal and click submit.

Verifying Voter Identity

revolutionizing democratic election.

If that first explanation sounded simple and you wonder why we’re not voting on the blockchain already, just hold on. It’s actually a lot more complicated than that. There are a lot of issues that need a resolution first.

One major issue is verifying voter identity. In order for blockchain voting to work, we need a system that prevents people from voting more than once or voting in an election where they’re not a citizen. That get’s tricky on the blockchain because it relies on a central authority to verify citizenship or residency documentation.

A blockchain solution would likely rely on submitting passport or driver’s license scans. Then that identity might be connected with a mobile device via a password and two-factor authentication or biometrics (like a fingerprint). The idea is to verify that the person who submitted the citizenship documents is the same person who is actively at the computer or smartphone at the time of the vote.

Maintaining Anonymity & the Secret Ballot

Once we’ve verified identity and eligibility to vote, however, we need to separate it from the ballot itself. Importantly, one of the key parts of democracy is the secret ballot. Nobody should know how you voted so they can’t influence your vote in any way.

With blockchain voting, the information that registers on the blockchain shouldn’t include identifiable information. This means that information about the sender of the voting token has to be hidden. There are different ways to accomplish this, including zero knowledge proofs, ring transactions, or various encryption methods. Each has its benefits, drawbacks, and technical challenges. True anonymity at the same time as verified identity is the big challenge of blockchain voting.

Cybersecurity experts generally agree that blockchains are unhackable (with the right network size and consensus algorithm). Logic proofs and statistics indicate that it becomes increasingly unlikely that a block can be compromised once the network confirms it. However, the anonymity needed for voting is more difficult to secure and be certain that it won’t be compromised.

Possible Implications

Blockchain voting has huge implications if it grows in popularity and usability for the general public. It could fundamentally change how democracy functions.

1. Increased Transparency in the Voting Process

The biggest benefit of blockchain voting is increased transparency. Right now, once you cast your vote, you don’t really know what happened to it. You trust the poll workers to count it correctly. However, there’s no way to be sure that your vote counted.

On the blockchain it could be possible to track your vote and see that it ended up in the right place. Even though it wouldn’t have your information tied to it, your vote would exist on the blockchain for all of history.

2. Reduced Fraud & Election Rigging

A side effect of increased transparency is reduced fraud. It becomes harder to cheat the system or vote in the wrong jurisdiction with blockchain identity verification. Moreover, in countries where dictators rig elections, the blockchain could bring true democracy. Of course, initiating a blockchain voting system requires buy-in from the current government. However, over time blockchain could become an international voting standard, with the world community advocating for blockchain governance in all nations.

3. Everyday Voting in Real Time

If blockchain makes voting transparent, then we can follow and tally votes in real time. This means that elections can happen on a much shorter timespan. Additionally, if they are digital, they require less investment in polling infrastructure. As a result, elections could be held with a short lead time to vote on a referendum quickly.

This could completely change daily life. Imagine if you could vote on your phone on how traffic in your city would be routed today or whether to increase taxes to pay for a new park in your community. Voting could become highly targeted, even neighborhood specific. There would be little overhead to voting more often, possibly making voting a daily occurance.

4. Corporate Governance & Autonomous Organizations

Governments aren’t the only institutions that could benefit from blockchain voting. Employees or shareholders could vote for initiatives within a company as well. It’s possible to even imagine ownerless businesses where every decision is an open vote from shareholders.

5. Increased Voter Engagement

A big advantage of blockchain voting could be increased engagement. If blockchain makes digital voting possible from your smartphone or computer, voting becomes as easy as logging in and casting your ballot in just a few minutes. This would likely increase voter turnout drastically, leading to more direct democracy. Alternatively, it could lead to voting fatigue, where voters realize they liked electing representatives to worry about policy for them.

Conclusion

Blockchain voting still isn’t perfect or ready for primetime yet. However, it’s likely to be a massive change in democracy once it does reach legitimacy. Making voting easier and more transparent will create a more engaged electorate. It may also remind us of why representatives exist to think about policy full time and make wise decisions about things the general public might not be able to research fully. Easier voting could mean more frequent representative elections or ongoing referendums on our leadership. Even that would be a big change for democracy.

Share you thought with me in comment and express your opinion. Awareness and  open conversation are the key for the creation of a better future.

If you like this content and would like to get more, Please like this post subscribe to this blog or to my Facebook. Your support is giving me motivation and helping me cause. For more topics in this blog click here.