We have seen a number of innovations occurring in the cryptocurrency and blockchain technology industry. In this article we’re going to explore some of these innovations and how they have the potential to disrupt society for the better.
1. Fiat Currency
The most well-known disruptive use case of cryptocurrency and blockchain comes in the form of Bitcoin. Bitcoin is challenging traditional fiat currencies such as the US dollar by serving as an alternative currency with which individuals can use and, more importantly, trust. The added advantage that cryptocurrencies have over traditional fiat currencies is that they are cheaper and faster to use when sending money abroad.
2. Decentralized Finance (DeFi)
The DeFi space is one of the more interesting aspects of the industry right now. DeFi applications are proving to be worthy challengers to the traditional financial system. DeFi applications allow for individuals to bypass the traditional financial system and instead conduct day-to-day financial activities on DeFi protocols. For example, there are DeFi applications that allow you to lend and borrow money, all in a decentralized and trustless manner.
Another area seeing significant disruption is law. Self-executing smart contracts are proving to be useful in the legal industry, as contracts can now be self-enforced automatically without the need for middlemen. This disruption is likely to continue permeating throughout the industry, from the practice of the law to also teaching the law. For example, LSAT course providers in the US and SQE course providers in the UK will have to change the way in which they operate as a result of the technological innovation.
A key advantage of blockchain is its ability to decentralize power away from a few powerful individuals and companies. This advantage has the potential to be especially disruptive in the sharing economies. Powerful companies such as Uber and Airbnb will likely see a challenge to their power, as blockchain-based alternatives become available.
There are many more use cases that will be disrupted as the cryptocurrency and blockchain industry matures. Whilst we can’t be sure what these use cases will be, what is certain is that the cryptocurrency and blockchain industry, and the innovations that have come from it, are here to stay.