Introduction
The genesis block of Bitcoin bears the inscription, “Chancellor on Brink of Second Bailout for Banks.” This encoded message, imparted by Satoshi Nakamoto, signaled the advent of a paradigm shift in finance: distributed ledger technology. The distributed ledger transformation is not limited to crypto speculators; it is finally reaching the echelons of central banks and commercial banks.
Cryptocurrencies bear significant risk. The collapse of entities like FTX and Terra, coupled with extreme volatility and the largely unregulated nature of the crypto realm, suggest that it might not be an ideal investment avenue for the average consumer.
Despite these risks, the innovative technology behind cryptocurrency is undeniably powerful. It empowers anyone with internet access to transact and store their own crypto‐assets, opening up promising possibilities for financial inclusion. It represents the precursor of an open, global financial system without intermediaries, operating 24/7 and challenging traditional financial structures, thus paving the way for a more accessible and inclusive financial landscape.
As we will explore, blockchain technology – more broadly referred to as distributed ledger technology (DLT) – is spearheading dramatic changes and advancements in finance. DLT enables for an efficient, secure, and interoperable financial ecosystem, enabling faster and more inexpensive experiences for consumers and businesses. Its potential to transform payments and capital ...
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