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The opinions expressed by the entrepreneur's contributors are their own.
There is no doubt that blockchain technology has enormous potential to change the world. This has been shown in every area of human endeavor.
Blockchain technology has been used in the medical, engineering, and especially financial industries. But one thing stood out: governments and many investors were concerned, at best, about the healthy adoption of the technology.
The reason everyone is citing is that the blockchain is not regulated. In order for blockchain to be widely accepted, some degree of assimilation to the traditional approach must be required.
Blockchain as a technology has spawned true limitless peer-to-peer value transfer and innovative ways to raise capital or invest in promising projects. However, a coin has two sides. A major application the blockchain was first used for was cryptocurrency, which many people have used in various ways as the primary exchange of values for illegal activities. You also can't wish that many investors were cheated of their resources by shady ICOs.
It was sweet music for the ears when Zurab Ashvil, founder and CEO of L3COS, came up with the idea of the world's first regulated blockchain-based operating system. "Without a single universal platform for governments, businesses and individuals around the world, there is no practical solution to addressing the underlying blockchain problems we are facing today," said Ashvil.
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With a three-tier transformation, the government can gain voter confidence, save money, and go green. Businesses to minimize fines, globalize and reduce operational costs; while society will strengthen democracy, facilitate international travel and simplify taxes; A regulated blockchain is a gateway to our technological progress.
What a regulated blockchain means is that the effects of negative testimony from government officials and media, as well as regulatory uncertainties, on entrepreneurs, investors, the market and the industry at large will be a thing of the past.
One area where we have seen the positive effects and changes in technology is in the case of digital currency. The internet was the forerunner of cashless politics and internet banking, which greatly reduced the stress people had to go through doing business.
The Chinese government vehemently rejected the cryptocurrency because it was decentralized. However, it is a huge relief to see that the People Bank of China (PBOC) is at the forefront of legitimizing the digital currency.
As part of a pilot program, PBOC launched a native digital currency in four cities. This is a big step in upgrading a major central bank's first electronic payment system. The Bank of England (BoE) is also following in China's footsteps, but is in a review phase as of July 2020.
BoE Governor Andrew Bailey reportedly said, "I think in a few years we will be approaching a digital currency."
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In the US, too, concerted efforts are being made towards digital currency, with US investment bank JP Morgan being the first bank to create a digital token to process payments between customers in the wholesale business for payments. This does not undermine the fact that the US Federal Reserve has not made a categorical statement about the country's position on CBDC.
"We support cryptocurrencies as long as they are properly controlled and regulated," says Umar Farooq, JP Morgan's head of Digital Treasury Services and Blockchain. It is known that the bank has always claimed that blockchain technology is of immense utility. Their only problem was the inability to regulate them.
If you previously expected blockchain technology to be fully deployed, even when it wasn't intended for areas of financial relevance, you didn't assume this wrongly. What was accomplished before the advent of regulated blockchain technology is a situation where investors are proceeding with caution.
They are rightly skeptical when it comes to pouring their resources into a company that could crash at any time due to the position of government officials and policy makers. The adoption of regulated blockchains like L3COS and others that will quickly compete is based on the fact that they can automate a wide range of operations and reduce bureaucratic procedures.
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The automation takes place through intelligent contracts. The system removes intermediaries between end customers (businesses and consumers) and central banks.
Aside from regulation, which is the primary culprit for almost anyone with an opinion on blockchain technology, the environmental impact of business transactions is another area that has raised many concerns. You can now afford to reduce paper consumption to an unprecedented minimum and thus make a significant contribution to the green world.
Reducing costs is very important to the upkeep of your business, especially if these costs arise from illegal activities that you must have carried out accidentally or unintentionally. This is a thing of the past, as the system automatically performs a compliance check for you every time you attempt an operation.
This results in your operation being blocked if it appears to be violating the promised rules and regulations. In this way, the system ensures that you do not fall victim to potholes and saves you from engaging in illegality while running your business.
A regulated blockchain ensures that transactions are monitored by supervisory authorities. The fear institutions housed the whole time, can now be laid to rest.
With unregulated blockchains, institutions usually run the risk of financial loss and the risk of further repercussions due to abuse of the responsibilities entrusted to them. There are also financial penalties to be paid and reputational damage to be taken into account.
Now that the world is not short of regulated blockchains, this is a very good opportunity for any government or organization that wants to lead the global blockchain market to act quickly. In a short time leaders have to show up and the others simply have to follow suit.