Some ten to fifteen years ago, we only use paper, coin, or even gold to “pay” for something. Some argue that the paper that our government issued does not have a real value, only fake but controlled value by an entity called government. Now, that technology already advances for quite a lot in the recent 15 years, a new currency based on cryptographic accounting was born, or so called Bitcoin (BTC).
Bitcoin offers aspects that never been available if the society only uses fiat currency. Anonymity, lower fees, worldwide trade. Even though it’s been said over and over that BTC is not exactly anonymous, but still to some degree it provides anonymity. Lower fees are obtained by reducing the institution needed to transfer some amount of money. Traditionally when I want to transfer money from Bank A from USA to Bank B in China, Bank A must check whether they have a direct link to Bank B or not. If not, Bank A have to transfer the funds to another bank that have the direct link to Bank B. Even worse sometimes if we are sending to a country without strong banking establishment, the funds from Bank A must hop several times before ending in Bank B. Which means that every time the money was being transferred in between banks, we are being charged some amount of transfer fees. All of the fees collected add up pretty quickly. Believe me.
BTC tried to evade the institution needed to transfer funds, which also means that banks does not have control over the transaction happening in the network. That what it means to be decentralized. Transactions are validated not by one entity, but by a collective effort from nodes operated by real people all around the world. That’s the beauty of decentralization.
Some are against, while some are waiting for the revolution around banking system to come. A lot of institutional bodies tried to take BTC down by spreading doubts, hate speeches, or even strangling regulations, in an effort to protect the current monetary system. On the other hand, groups of innovation minded people starting to embrace the benefit of using cryptographic ledger, which is the block foundation that build bitcoin system. Even some banking corporations are already testing the reliability of such system being implemented for keeping all customers transaction data.
Now, all we need to do is wait for the exciting years to come in the field of technology. We are now living in a year full of excitement ranging from cryptocurrency, space travel, DNA editing, and well who knows later on in life we’ll be able to combat aging.