Blockchain technology is a distributed ledger, meaning that no major party, individual, or business needs to facilitate transactions on the blockchain network. The trust required for transactions on a blockchain network is left with the node or collection of peers in the network. This is a shift from our traditional way of thinking, in which we instill confidence in national governments. That being the case, is blockchain technology a threat to governments worldwide? Also, in the era of Big Data, is blockchain technology a threat to the big companies that profit from our data and information? This article will examine how blockchain technology can threaten national governments and large corporations worldwide.
Simplified Transfer of Digitally Represented Assets
As mentioned, a blockchain network allows for a distributed trust system where transactions can be carried out without a 3rd party intermediary. This allows anyone to transact with any digitally representable asset and exchange that digitized asset with anyone on the blockchain network. It can be a digital representation of money, such as cryptocurrency, or information such as title deeds or personal information and data.
The blockchain network can also grant access to any digital asset, such as personal information if the person who owns the asset wants to give access to someone else. This is achieved using cryptographic keys representing ownership of support on the blockchain and enabling these assets to be exchanged between people on the network.
Now that we have a look at how blockchains can enhance any digitally representable asset let's look at the threat it poses to governments and large corporations.
Blockchain Threat to Governments
Blockchain networks pose a significant threat to governments because anyone can be part of a blockchain network and transact anonymously. This is a government problem for several reasons, which we will now examine.
Anonymous Transactions
As mentioned, anyone can transact anonymously on the blockchain. This is a problem for governments worldwide because monitoring and stopping illegal financial activities such as money laundering is harsh. It is also challenging to track movements that could be considered terrorism, as blockchain technology can be used to create anonymous messaging channels that do not flag specific keywords. Also, if suspicious activity occurs on the blockchain and governments are aware of it, it is relatively challenging to link the blockchain profile to a non-blockchain identity.
Seamless Global Payments
Anyone on the network can do unlimited transactions without any problems. This is a problem for governments when looking at cryptocurrencies, especially digital representations of money, as anyone can now send and receive money globally using the blockchain. This is great for everyone in the network but not so good for governments because they can't effectively monitor the inflows and outflows of funds in their own country. This creates a massive problem for governments as each country's money is no longer traceable and uncontrollable.
No Connection to Any Jurisdiction
Because the blockchain is decentralized, it is not subject to government authority. This means that people transacting on the blockchain do so outside their country of residence. At the time of writing, all activities or profits made on the blockchain are not taxable until the money is exchanged for the fiat currency of a particular country. When cryptocurrency is exchanged for a specific country's fiat currency, the traded value is subject to tax regulations in that country. However, most people think their funds are better on the blockchain than in a bank account. This is a problem for governments because they cannot collect taxes as much as before the invention of blockchain technology. People can also hide how much money they have in a blockchain ecosystem due to the anonymity and privacy of the blockchain.
These are just some of the main problems that blockchain technology poses for governments worldwide. Many more are not yet considered major threats or are not yet considered major threats; this will inevitably become more significant problems as the current adoption of technology grows towards mainstream adoption. Let's take a look at how blockchain technology poses a threat to large companies. This mainly applies to companies that monopolize the Big Data industry.
Big Data Age
Data and personal information are more valuable than gold and oil in our age. Big tech companies have noticed this. Many have found a way to monetize our user data, claiming that they violate our privacy by selling our personal information to other companies. Blockchain poses a threat to these big tech companies. Let's take a look at how.
Threat to Large Corporations
As you may recall, blockchains allow anyone to control access to their digital assets. These assets can be money like cryptocurrency or personal information, title documents, etc. may contain information such as This allows people to do what they've never been able to do before controlling access to their personal information. This is a problem for big tech companies, which collect our data in the background without our prior consent and then make money by selling it to other companies. Thanks to blockchain technology, users can control how much access they have to the personal data of these big tech companies and what personal information they can access. This would significantly reduce the potential earning capacity of this lucrative revenue stream for these large tech companies. Blockchain technology can eliminate all monopolies in the market and create a fairer marketplace with a lower barrier to entry for new market players. With all that said, it's easy to see why some of the biggest tech companies, especially those playing in the Big Data space, are investing in research to identify ways to play in the blockchain space while simultaneously mitigating the risk posed by blockchain technology. About their position in the industry.
To summarize
Blockchain technology poses a serious threat to governments and large corporations worldwide because it gives users control over their data while protecting user privacy and providing a seamless, global transaction ecosystem where anyone can transact. The Big Data industry is most at risk because its customers start using blockchain technology in their daily lives; it will restrict their customers' access to their information. This will significantly affect the revenue streams of these companies based on collecting and selling their customers' information.
Posschain Puts User Privacy First
Posschain is a super-performing blockchain ecosystem that aims to eliminate the market dominance of Big Data technology companies and envisions a borderless world where users can transact seamlessly across the globe. Their ecosystem can achieve this by cleverly using some of the best blockchain technologies and protocols that strengthen privacy within the ecosystem. Technologies such as ZK-Snarks and transaction jammers are just a few of the protocols used in the Posschain ecosystem that control access to users' personal information and ensure their privacy.
