The original purpose of blockchain was to enable trustless payments on the Bitcoin network. Before Bitcoin, online payments required an offline third party such as a bank to manually approve each transfer. This created a major weakness to fraud and theft – one which is no longer present in Web3 systems built on the blockchain.
Did you know?
As of 2018, the average international transfer costs over $35 USD. A Bitcoin transaction by contrast costs less than $10.
Payments online are currently transmitted through private third parties, which complicates international transactions and reduces the ability of regulators to monitor activity.
In order for a more open and transparent system to be truly efficient, users must be able to be held accountable for their actions. With the introduction of cryptocurrencies and the Internet of Value, it is finally possible to create transparent incentive-based systems online. We can now connect digital action with value in a very real and precise way.
What can we do today?
1. Develop proper online identity tracking systems
2. Implement systems to track value creation through the supply chain and better reward contributions despite intermediaries
3. Keep others accountable online
4. Use smart contracts to allow all participants to see the inner workings of a system and handle automatic fulfillment
Check out our section on finance for more on how these systems can promote independence.