What it is
Blockchain is a decentralized peer-to-peer platform for digital assets which allows market participants to keep track of digital assets/currency transactions without central record keeping.
Meaning, it is a public ledger of all digital asset transactions whereby a global network of computers uses blockchain technology to jointly manage the database that records all the transactions.
Crypto-currencies are digital assets/tokens/currencies designed to work as a medium of exchange using cryptography to secure transactions, to control the creation of additional units, and to verify the transfer of digital assets.
Like paper (fiat) money and gold before it, crypto-currencies such as Bitcoin, Ether (Ethereum), XRP (Ripple) and Litecoin allow unrelated parties to exchange value.
Unlike their predecessors,
crypto-currencies are digital and decentralized.
Of significant note is that, for the first time in history, people/institutions can exchange value (peer-to-peer) without intermediaries such as banks.
This is true because, essentially the sine qua non, the “TRUST FACTOR“ is established by the immutable and
de-centralized nature of blockchain technology.
Eliminating the intermediaries from transactions thus has created profound changes and has provided individuals, institutions and global economies the options in how they create and manage value.
This autonomy translates to greater control of funds, lower transactional fees, lower transactional times, improving mitigating of risk and greater efficiency in value innovation.
Like paper (fiat) money and gold before it, crypto-currencies such as Bitcoin, Ether (Ethereum), XRP (Ripple) and Litecoin allow unrelated parties to exchange value.
Unlike their predecessors,
crypto-currencies are digital and decentralized.
Of significant note is that, for the first time in history, people/institutions can exchange value (peer-to-peer) without intermediaries such as banks.
This is true because, essentially the sine qua non, the “TRUST FACTOR“ is established by the immutable and
de-centralized nature of blockchain technology.
Eliminating the intermediaries from transactions thus has created profound changes and has provided individuals, institutions and global economies the options in how they create and manage value.
This autonomy translates to greater control of funds, lower transactional fees, lower transactional times, improving mitigating of risk and greater efficiency in value innovation.
Most countries in Africa, including Ghana, have no laws on the use of crypto-currencies such as Bitcoins or other applications that run on the blockchain protocol.
Although the groundbreaking Bitcoin currency, and the blockchain protocol it runs on have been around since 2009, the concept is still new in Ghana. Despite the numerous use cases that have been identified as beneficial especially to developing countries, most of the citizenry and institutions are slow in enrolling or embracing this force.
Blockchain applications will help low-tech nations to leapfrog legacy systems and ultimately create socio-economic impacts in backwater communities, similar to the way the Internet has helped in accessing of information and communication, to the way mobile telephony has helped developing countries to overcome lack of large capital outlays needed for land line infrastructure to bridge the communication gap.