I believe blockchain technology influences the global economy through its features and

applications. Any transaction involves two parties like a seller, buyer or sender, receiver, etc.

Sometimes there might be many parties associating though they are unrelated to each other. In

this scenario, a representative agent will help get the transaction through and take their

commission to facilitate it. This type of handling creates a delay and many opportunities for

fraud and theft. Blockchain solves this problem by using an unchangeable distributed ledger

tracking the transaction in real-time and permitting the parties to trust its details. It reduces the

documentation efforts involved with an agent facilitating the transaction. Each step of the way,

all components can be viewed with the time they have been recorded, and each involved party

can view and approve the reception. Also, it follows the cryptography techniques that enable the

uniqueness of each entry, and it cannot be modified in any way (Norberg, 2019). This had been

the first phase of the release, in which it achieves transparency, authentication, and reliable

auditing features. The second phase of its release allows people to record the contracts, which

has been widely used today by many renowned financial institutions, enabling them to provide

smart contracts to their customers. Followed by the release of the third phase, blockchain is

available to all industries by an open-source hub for any developmental activities using the

technology.

It is used with cryptocurrencies where currencies possess public key security encryption

as the underlying security protocol. Through its application, as explained above, it provides an

economy of trust and value. The digitized flow of money through technologies like bitcoin will

help get the transaction quicker and more accessible, proving the future of all trades. Even today,

most of us have moved to use digital wallets, replacing the traditional way of using cash, credit

cards, etc. As Sakiz and Gencer Hic (2019) mention, the future of the blockchain market will
contribute approximately $120 billion between five years (Sakiz & Gencer Hic, 2019). For these

reasons, I believe it will positively impact the global economy.

References

Norberg, H. (2019). Unblocking the Bottlenecks and Making the Global Supply Chain

Transparent: How Blockchain Technology Can Update Global Trade. The School of Public

Policy Publications, (9), 1.

Sakiz, B & Gencer Hic, A (2019). Blockchain Technology and its impact on global

economy. International Conference on Eurasian Economies, 26(8)

https://doi.org/10.36880/C11.02258