Can Crypto Solve Real-World Problems

Cryptocurrency has a reputation for being “internet fun money” and “digital gold,” but can it solve real-world problems? In short, yes, although cryptocurrency isn’t taken seriously yet, it has huge potential to solve several real-world problems.

Privacy, financial inclusion, cross-border payments, and digital identity are only a few of the real-world problems cryptocurrency can solve if people would just give the technology a chance. Read on to learn more about crypto solving real-world problems.

1. Privacy

First and foremost, the world is currently headed into a privacy crisis. Despite some positive regulations, such as the GDPR, the general consensus is that it is too little, too late. The world is currently filled with hackers and governments who are tracking everything you do and every penny you spend.

Although it has been established that humans have a right to privacy, it seems that the moment there is positive legislation, it’s followed by two negative pieces of legislation. Blockchain technology, like cryptocurrency, allows for privacy when using technology, in everything from banking to P2P payments and even to identity verification. More on that later.

2. Financial Inclusion

Many people take the ability to have a bank account and a debit card for granted. Did you know there are millions in the world who aren’t able to get a bank account at all? It’s true, and some of those people live in America.

Generally, you can’t open a bank account without a certain amount of documentation, things individuals born at home (like the Amish) don’t have. While it might be easy to scoff and say they chose this, every year, young adults leave the Amish community only to find there is no record of their birth anywhere, and they struggle to find their way in society, especially with banking and finding a job.

Cryptocurrency allows those that a bank would scoff at to have a chance at using digital payments. While it has its own learning curve, there is no entity preventing individuals from opening a cryptocurrency wallet—something no fiat currency can solve.

3. Cross-Border Payments

The world has been steadily shrinking since the 1970’s, and though companies like MoneyGram have stepped in to help facilitate cross-border payments, it still isn’t a convenient way to send money over borders.

Not only are money orders expensive, but they also require the receiver to have access to a location where they can redeem the money order. Just because you live near a 7/11 that offers the service, doesn’t mean your recipient does.

Cryptocurrency has made it easy for individuals to send money to their friends and family all over the world, thanks to Bitcoin ATMs and other methods of redemption. In fact, cryptocurrency is one of the major ways companies are able to get aid into war-torn countries like Ukraine and Gaza.

4. Digital Identity

Unfortunately, it is very easy to forge a non-digital identity. All a malicious actor has to do is snag your social security number, then they can create all sorts of identity documents and open all sorts of credit cards in your name—only to max them out and disappear.

While many countries, like the Netherlands, have taken steps to create digital identities that are easier to protect, they are still government-run, meaning if the government collapses, millions lose access to their identity. While there is a low chance of that in the Netherlands, this is a very real concern in many other countries.

Cryptocurrency, or blockchain more specifically, offers technology to build digital identities that aren’t tied to a certain government and are valid on a worldwide scale. While this is a long way off, many countries have already begun to use blockchain for voter verification, and this is only the beginning for crypto in identity spaces.

While this may still be a long way off, in the meantime, check out this article on how to protect your identity from theft.

5. Supply Chain Tracking

Supply chain tracking has been the bane of human existence for decades. How many times have you gone to track a package only to find it is completely lost and no one has any idea where it ended up?

The reality is, our supply chains have been struggling since COVID, and blockchain can help to fix it. Right now, supply chains are a web of chaos instead of being easy and streamlined. For example, when you order from Walmart, Walmart has to rely on its system before passing your order to UPS, and relying on the UPS system to track the package until it reaches your door. Blockchain can be used to create one overarching system that all players can pay a small amount to get access to. Meaning Walmart can still hand your package off to UPS, but instead of relying on their system and UPS to track it, they would pay a small fee for open-source blockchain tracking, which you, as the receiver, could view, as could UPS.

Sounds cool, right? This would not only reduce fraud (for the missing packages that are stolen), but it would also make things cheaper for these companies, as they wouldn’t have to pay to maintain their own systems. You might think this sounds crazy and far off in the future, but let us tell you a secret: Amazon has already begun using a system like this for its deliveries—and it works. Of course, Amazon owns this system, so it isn’t decentralized like the one we are proposing, but it is evidence that something like this does have a place in society.

Overall, we hope this helped you realize the vast applications cryptocurrency has when it comes to solving real-world problems, and this is just the tip of the iceberg. Whether or not you like crypto, the reality is that blockchain tech is here to stay, and it will definitely transform the world someday soon.