The Financial Future Of Decentralized Monetary System In The Coming Years Will Be Profound

The Future Of Decentralized Monetary System In The Coming Years

Handling money and financial transactions have evolved in the wake of civilization and technological advancement. In the early times, the safety of one’s assets can be guaranteed in how discrete the holder of such an asset is in keeping them.

Before the establishment of banks, people dig holes in secured locations to keep their money, others find safe spots in roof and crevices to safeguard their cash, a practice still in operation today. Majority of people love the freedom that comes with them making decisions relating to their finances. The advent of modern banking or financial institutions did introduce a certain level of restriction, a development that man keeps inventing ways to subvert.

Decentralized Monetary System In The Digital Space

In this system, multiple parties make financial decisions as soothing to them. The concept of decentralization is sufficiently boosted by the advent of cryptocurrencies using blockchain technology which in many ways helps to provide an acceptable level of anonymity. The decentralized nature of blockchain technology means that it doesn't rely on a central point of control. A lack of a single authority makes the system fairer and considerably more secure. Decentralization is believed to be a credible alternative in digital space as it is gaining considerable traction but many fear for its future because of the perceived risks associated.

One of the fears of a decentralized monetary system as noted by Rohit Khare as published in The PACE project is that in a large-scale system, certain domain-specific behaviors may indicate the trustworthiness of a user. Trust relationships should generally improve when good behavior is perceived as a particular peer.

Similarly, when dishonest behavior is perceived, trust relationships should be downgraded accordingly. Rohit also hinted on impersonation, fraudulent activities, collusion etc. as other critical threats bedeviling the decentralized system.

The major proponents of decentralization in the cryptosphere hide behind decentralized exchanges that help curb the untrustworthiness of the peers in the decentralized system.

Decentralized cryptocurrency exchange offers in addition to the credibility of transactions, the opportunity for users or customer total control of the asset. Users tend to keep their private keys, the encrypted cryptographic code that is needed to access cryptocurrencies in decentralized exchange’s wallets. This way, holders can deploy the assets without fear of regulations.

Fate Of Decentralization

In the cryptosphere today, decentralization is not just gaining traction, it is serving as the long-sought solution to the many inconveniences that surrounds regulated financial institutions and centralized cryptocurrency exchanges alike. The utmost clamor is for stakeholders in the financial system to support the technological development of decentralized systems.

Should the proponents of this decentralized monetary system with regards to cryptocurrencies get it right with regulatory agencies which many believe would not happen in the next few years, then we would experience a monetary era where everyone would be their own “central banks”.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 20th)

 

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Alo Kingxy
Alo Kingxy
Alo Kingsley had been a strong Cryptocurrency & blockchain enthusiast with immense interest for privacy , and masternode coins, and a passionate Cryptocurrency article writer and marketer since 2017

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,440FansLike
2,795FollowersFollow
4,189FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

‘Big Buys' on Bitfinex Exchange has Bitcoin Trading at a Premium

The world’s leading cryptocurrency shot past $10,000 yesterday in a strong move only to fall to $9,150 on Bitfinex and $8,600 on BitMEX in...

Russia to Prohibit Crypto Circulation, Mining, and Ads Under New Draft Law For Digital Assets

Cryptocurrency regulations are quite tricky and up until now, only a few countries can boast of finding the right mix of existing new laws...

China’s Largest Mining Chip Maker, SMIC, Gains Regulator’s Approval On $2.8B IPO

One of China’s biggest semiconductor manufacturer, SMIC, announces plans to raise a $2.8 billion public sale IPO on the Sci-Tech Board of the...

Bitcoin Flash Crashes to $8,600 with BitMEX Shenanigans at Play Again

Bitcoin doing bitcoin things! Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low. https://twitter.com/100trillionUSD/status/1267835341987340288 Yesterday, Bitcoin jumped as high as...

AVA Labs Integrates Chainlink’s Decentralized Oracles to Improve DeFi Dapps Development

AVA blockchain, becomes the latest platform to add Chainlink, a decentralized oracle system to its platform. The integration of Chainlink to the Dapp blockchain...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today