Blockchain Boon for Watchdog Transparency Activities in Cryptocurrency is Becoming Vital


The blockchain industry and market continues to expand all over the world. There are several firms and companies that are starting to use and implement it in many different areas. One of the main features related to distributed ledger technology (DLT) is that companies can run their own node and monitor every single transaction that takes place on it in real time.

In general, the crypto space has a bad reputation with regulators. This is due to several reasons. Back in 2017 and the beginning of 2018, several Initial Coin Offerings (ICOs) were releasing their tokens to the market, but several of them were just scams or fraudulent projects.

However, the Mt. Gox collapse back in 2014 showed that Bitcoin (BTC) and its blockchain worked as they should. They were immutable, uncensorable and preserving provenance. However, the collapse of the trading platform can be compared to how other traditional financial institutions work (Lehman or Enron).

Indeed, blockchain technology has the potential to become one of the most important developments for regulators. As soon as the technology goes mainstream, investors would only have to rely on third-party companies that regulate data. According to Omid Malekan writing for Diar, manual labor that enforces compliance will be automated.

Another important thing that Malekan mentions are related to disclosure accountability. He explains that public companies around the world have to make massive public disclosures on a regular basis. This is especially important in the banking industry, however, due to the challenges faced by these institutions, things are not so clear.

The author of the article puts the example of MakerDao. This project uses a smart-contract system that allows individuals to put up collateral and borrow funds against it. Users can watch in real time how new loans are generated, old ones are paid and under-collateralized loans are liquidated.

It is also possible to monitor all kind of exchanges using blockchain technology. This allows firms to understand whether there is wash trading, whether the proper book works properly and so on.

Malekan wrote:

“In the future, as more and more services get ported over unto decentralized platrofmrs, their values of fairness and transparency will go mainstream. When a decentralized ride-sharing service goes into surge pricing, you’ll be able to see exactly why.”

The author provides more examples and how blockchain technology can be used for tracking transactions, products and more information.

https://bitcoinexchangeguide.com/todays-coin-price-watch-btc-eth-xrp-and-bch-cryptocurrency-chart-predictions/

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