In a year-end report on the global economy, the United Nations defines cryptocurrency as a "new frontier" in digital finance. According to the UN, cryptographic technology and blockchain in general has the potential to create new and revolutionary business models that reduce bureaucracy and drastically increase efficiency.
This is not the first time that the UN has expressed its interest in digital resources. In May, the United Nations Office for Project Services (UNOPS) revealed its collaboration with the IOTA to "explore how IOTA's innovative technology – which provides an open source distributed registry for data management – can increase the efficiency of UNOPS operations ". UNOPS is also exploring Ripple's cross-border payment solution suite, according to a report by the Association for Financial Professionals since the end of 2017.
The new UN report, called "World Economic and Social Survey 2018", plunges into the advantages of crypto, blockchain and distributed ledger technology.
Here is a look at the highlights.
Crypto represents "New Frontier" in Digital Finance
"Cryptocurrencies represent a new frontier in digital finance and their popularity is growing." Decentralized cryptocurrency networks, since Bitcoin is a well-known example, can track digital transactions, allow them to exchange value and can give rise to new models. of business that otherwise would require major regulatory and institutional commitments.
Blockchain and Crypto have many cases of use
"For example, a value token called climatecoin is considered a basis for the creation of a global carbon market, allowing for the peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. possible for the devices to calculate their carbon emissions and purchase carbon credits to offset these emissions.
There are also proposals for the use of blockchain technology as a distributed ledger of real information on property registration, personal identity and the origin of food and medicines, among many other types of data. The United Nations and the World Identity Network are exploring ways to record the identity of children on a blockchain as a means of fighting child trafficking ".
Innovation derives from intrinsic trust
"The innovation of this system lies in the way the various parties combine to build trust and ensure that the traditional financial system comes from institutions and regulations." Incentives align the participants' interest in contributing to security. of the system.
In contrast, the traditional system relies on a complex armor of implicit or explicit reporting, supervision and guarantees, ultimately supported by the central authority's reputation. As such, blockchain technology presents the possibility – a novelty in the field of finance! – that trust in institutions supported by the government can be replaced by trust in the computer code. "
You can check the full report here.
Image via Wikimedia
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