Using bitcoin as an example, here are some of the pros blockchain technology:
- Decentralization: No government agency issues or controls bitcoin and other cryptocurrencies. The lack of intermediaries reduces cost, as the fees associated with third-party transactions also are eliminated. And it is time efficiency, the blockchain is open for business 24 hours a day, 365 days a year, unlike banks and other intermediaries.
- Transparency plus anonymity: All transactions on the Bitcoin blockchain are recorded on computers across the network. Transactions are completely transparent because the address and transaction history of bitcoin wallets, which hold the cryptocurrency, are publicly viewable, but the owners of each wallet connected to those public addresses are anonymous and not recorded.
- Accuracy and security: Because the transaction involves little human interaction, there is a lower risk of error. Each transaction must be confirmed and recorded by a majority of the network nodes, which makes it vanishingly difficult to manipulate or alter information. This also prevents anyone from spending a bitcoin more than once.
- Opportunities for the underbanked: In countries and regions with poor or corrupt financial institutions, cryptocurrencies based on blockchain protocol allow the transfer and holding of cash that bypasses unscrupulous third parties.