The United Nations recently released a paper titled, “World economy and social survey” which focuses on frontier technologies such as Artificial intelligence, Robotics, Blockchain, and Cryptocurrency. In the case of the latter, the paper states that it is an innovative technology that takes away the need to rely on a central authority to ensure that fraudulent transactions do not occur.
U.N. Labels Blockchain and cryptocurrency as Frontier Technologies
The United Nations in its report focused on some technologies including Blockchain and cryptocurrency. These technologies are labelled as “frontier technologies” whose innovative power have the potential of achieving the “2030 Agenda for Sustainable Development.” Among the agenda is to bring about good health, prosperity, and longevity says the document.
According to the UN, Blockchain is a digital platform that takes away the need to check if there is double spending during transactions. In a traditional banking system, verification has to be made of who owns funds; if the funds are sufficient for a transaction; and verification that money is not spent twice. This is made possible by updating ledgers to reflect the transaction that has taken place.
Blockchain Helps to Foster Trust Without a Central Institution
Therefore, the paper points out that Blockchain helps to foster trust and guarantee among people. They added that this is the case even when there is no central institution or regulation to carry out checks and prevent fraud. Specifically, the U.N. referred to Satoshi Nakamoto who in 2009, proposed the distributed ledger system to enable electronic transactions.
According to the U.N.:
The blockchain technology presents the possibility—a first
in the field of finance!—that trust in institutions backed by government can be replaced
by trust in computer code.
Blockchain’s Potential in Various Industries
Blockchain has been receiving a lot of attention of late, and an instance was reported by BTCNN on December 16, that the European Parliament (EP) has proposed using the DLT to monitor global trade. In a resolution tagged “Blockchain: a forward-looking trade policy.” , the EP outlined Blockchain’s potential. This includes its ability to bring about security, traceability, and transparency.
In the aspect of a cryptocurrency like Bitcoin, BTCNN also informed on January 19 of the Federal Reserve Bank of ST. Loius’ opinion of the digital asset. According to the Fed, Bitcoin’s price will likely not fall to zero. This was attributed to the fact that it is a database management system which offers fundamental value to people.