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Why Privacy is Important for Our Financial Future: Using Blockchain Payment Systems

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  • Why Privacy is Important for Our Financial Future: Using Blockchain Payment Systems

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    A recent Harvard study claims blockchain technology to have a similar impact on the banking industry as the internet impacted electronic media. It is without any doubt that Blockchain technology has immense practical applications and it has the ability to transform our financial future. Financial privacy is among the defining features of blockchain.

    In most geographical location, customers no longer have the same financial privacy that they once enjoyed. A series of legislations, such as the Right to Financial Privacy Act (1978), concluded that users’ financial data belonged to financial institutions and not the individuals. Moreover, the government can access financial or banking data at any time on smaller doubts of frauds, corruption or money laundering. In short, people relying on traditional means of financial transactions can no longer expect their data to remain private. It is a fact that almost all banking and financial institutions sell customers’ data to third-party marketers and other interested parties.

    Blockchain technology, on the other hand, allows users to make financial transactions with ultimate privacy and security of their financial data. The fact of the matter is that, unlike the conventional banking system, no single entity owns all the money in any blockchain system. Similarly, transactions are completely decentralized with everyone playing their part to keep the record straight. In other words, no group of board members controls the whole blockchain system or makes important decisions.
    Most people are aware of Bitcoin, the most popular cryptocurrency. Bitcoin is also regarded as a tamper-free and transparent payment mechanism. Users do not have to provide their names, contact info or addresses when making a transaction, allowing them to enjoy complete privacy. Instead of giving your money and financial information in a third-party’s hand with conventional banking, blockchain allows users to control their financial information.

    DAPS, which stands for Decentralized Anonymous Payment System is an example of how blockchain technology may be used in a practical way in everyday life. While the coin launch date is yet to be determined as they go through a rigorous security audit, the cryptocurrency community seem very excited about the privacy in conducting their personal and safe transactions in their daily lives. DAPS also has the potential to offer billions of global users access to make cross-border payments for their goods and services. As opposed to risking a lot of personal and financial information and waiting for days to complete an international financial transaction, users are expected to instantaneously conclude financial transactions across borders, and with better privacy and security features.

    For a typical person, the use of blockchain technology for payment transactions by using the DAPS wallet can ensure the required level of financial privacy in the future. Moreover, as the system is completely decentralized and self-reliant, there is no danger of any organization to sell your private data to third parties for financial gains. However, it is also important to mention here that law enforcement agencies in some countries may still have ways to access blockchain data in case of serious offenses, such as terror funding or drug trafficking.

    Furthermore, blockchain technology has the tendency to radically reduce instances of financial fraud, leakage of financial or personal data and hacking attempts. All this will ultimately result in better and more efficient business operations and more trust of people in financial integrity and transparency.

    Indeed, at present, many people have their doubts and confusions regarding blockchain and the future the technology may have to offer. The future surely lies with blockchain because of the enormous benefits it has to offer to mankind, especially those related to financial privacy and financial integrity.

    Sources:
    1. https://hackernoon.com/how-is-blockc...s-9241df07c18b
    2. https://en.wikipedia.org/wiki/Right_...al_Privacy_Act
    3. https://www.forbes.com/sites/andrewr.../#915ca6e6337d
    Last edited by DAPS User; 5 September 2019, 11:46 AM.
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