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Apr 24, 2020

A Financial Revolution

ILCOIN Development team

The world is quickly moving from the use of physical money to the usage of virtual money. This has been evident since the invention of credit and debit cards as well as cash-sharing sites like PayPal and TransferWise. It is seen as good practice to travel with as little cash as possible and use virtual money more often than not.

And as time progresses, the need to push further into the usage of cashless monetary systems only seems to grow. Now that we live in this world of cards and contactless payments, we must come to understand the issues faced with this reality and how we can stay safe. This comes through knowing what is happening in the social and technological advances of money today. We need to become part of a revolution that can keep us and our money safe.

The problems relating to modern monetary systems are obvious and are only getting worse as time goes on. The primary issue is that we have to work mainly through banks, which as we all know are profit-driven businesses. Though these have supervision from the government, they have a special, seemingly autonomous status in society. We can all remember the 2008 bailout. Many average people struggled with this issue; something that is known as centralization.

Centralization is concerned with one institution controlling all the decisions. This means that if the ship starts to sink, you sink with them. If they make rules or changes that you don’t agree with, you have no choice but to abide.This is somewhat unavoidable today. Employers require you to work through banks. Banks are regarded as watchdogs for money laundering and they play a central part in society. More and more, people are coming to realize that banks are not trustworthy; even with their cashless options.

Online, not much is different. Companies such as PayPal and Amazon are similar to banks in that they deal with your cash but now have even less oversight as they are owned by large companies. The rules and processes of using these options are sometimes stifling and hard to navigate. They also give some of your most private information to businesses that don’t necessarily have a great record with protecting your data. In many cases, dealing with the customer service of these companies can also be an absolute nightmare.

And above all else, there is the government that makes fiscal decisions for us and oversees the state of the economy for better or worse. This sense of leaving our money in other people’s hands is creating an increased sense of anxiety in many households. As people show less and less responsibility when things go wrong, how are we to react when we find ourselves in crisis? This is where the next generation of cashless monetary systems come in.

It has been a dream for many developers over the years to bring technology and society together and create a system which works for the vast majority. Finally, after more than ten years of development, we have the answers we need.

Moving into the future, decentralized monetary systems are being adopted by the people of the world in the form of blockchain technology. The blockchain allows people to interact with each other peer-to-peer without interference. It creates a space where none other than the people involved have a say in what goes on in any given transaction. Beyond transactions, one can also store data and create an ecosystem in which one upload leads to another creating security and trust throughout the system. This is the way that most blockchains work, and it does not contain any central power. The supervision is left to the community and the miners.

What are miners? Miners are the would-be employees of the blockchain system. They use hardware and software to validate the system and make sure everyone is playing fairly. Because miners are incentivized with monetary rewards embedded in the system through encrypted calculation, they are neither at the mercy of users nor do they have any leverage or access to the users. This is what keeps most blockchain systems decentralized. Similarly, these miners play a separate role of creating new money and releasing it into the economy of any given chain.

More than anything else, a blockchain ends at the developers and internal ownership and profiteering only goes as far as coin ownership. This gives investors the incentive to keep the system healthy but never allows them to actively get involved. This is what the next step in the monetary system looks like: a system in which people are returned to their place in control of their own lives and money; a system that allows peer-to-peer sharing, storing and exchanging of value and goods; in short, a decentralized system.

The blockchain has become safer and more effective since its original conception. Nowadays, we are seeing developments that allow for mass use and safety that can maintain confidence in its users. The blockchain is the result of the needs of society, and we can see now that people are beginning to understand that and gradually gravitate towards its use. It is a sign that we cannot trust these large companies or the government to protect us against their abuse of power. The blockchain is here because there is a need for it; a need for people to feel like they are in control of their own money and their own lives.

Finally, we can discuss the monetary revolution that is going on as we speak. Sometimes it takes big ideas to get us out of our deep-rooted problems. The blockchain creates an ecosystem for people to work together in a safe environment online and in society.

Now, we look forward and hope that we can see progress in a decentralized system. Money has evolved over time, and now we have a new opportunity ahead of us: an opportunity for fairer interaction; an opportunity to have more transparency; and an opportunity to have more equity in society.

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