Central Bank of Crypto Money System Effect of Blockchain's Growing Market

 According to Exotix, a specialist investment bank, BlockChain will  show its biggest impact in emerging markets, unlike in developed  markets.

Expert in emerging markets, Paul Domjan, global head of Exotix's  research, analysis and data unit, is writing a comparison between  blockchain technology and smartphone and mobile bombings over the last  decade in a post he sent to customers this week.

Smartphones have brought changes in emerging markets, rather than  advanced markets, allowing many countries to skip fixed line phones.
"The leading markets today may be positioned to move once again to  developed economies, but this time the key technology will be blockchain  and crypto currencies," Domjan writes.

In particular, ownership ownership, implementation of contracts, and  the prospect of a clear application for transactions such as the hiding  or sending of money,

BlockChain  technology, also known as 'Distributed Ledger Technology', was first  recognized along with the digital currency 'bitcoin' created in 2009. With  this technology, which allows for the creation of a shared database  that is almost instantly updated, everyone can see the same version of  the database. The system uses advanced cryptography and group approval to protect the bookkeeping process. 

 People often use a central database to store things like trade. In this way, a neutral vehicle ensures that everyone is doing business according to the rules. Blockchain removes the need for this agent.

This  technology could have been totally independent since it was initially  developed to remove the central bank's need for bitcoin. However, this feature brings with it numerous applications for a  reliable vehicle or other sectors and processes that include central  authorities.

Banks  are very eager to adapt this system because of the security and  reliable control practices within the blockchain system, which removes  the need for intermediaries for payment and clearing. This also reduces costs. According to Santander's report published in 2015, banks can save as much as $ 20 billion with this technology.

"Due  to the distributed nature, the recording of new assets on the  blockchain can take place very slowly, which can take hours or even  days, whereas in the case of everyday e-commerce transactions, this time  is expressed in seconds, which is why blockchain technology, advanced  and even evolving it's a pretty bad alternative for existing asset records in economics, "says Domjan.

"We see that developing countries have an advantage over them"
But  in developing countries it is not the case, he says, because the  systems that register assets in these countries are not as reliable as  they are weak. 

 "Latent periods in Latin America, Sub-Saharan Africa and South Asia,  even with prominent markets like Russia and China, with high-income OECD  countries having equivalent asset registration systems, can perform  even less than half of the best-performing economies."
Sweden is working on a blockchain-based land registration system with an advanced country. Ukraine and Georgia are among the other countries working on this solution.

"If  you look at it, blockchain technology can be used to keep a clean and  reliable record of everything, for example Estonia put a notary service  called BitNation into a system that recognizes marriages recorded in the  BitNation blockchain system, while Ukraine has a selection on the  blockchain system developing the platform. "

Similar applications also apply to contracts. Ethereum's blockchain technology makes it possible to write rules-based rules: for example, If the payment was received, such as registering the shop in the buyer's name. This technology, which is not yet a powerful tool for developed  countries where transactions are routinely carried out for such things,  can be used as a means of transforming emerging economies.

"The  same principle can be used in transactions carried out in many places,  from financial derivatives to international trading," says Domjan, who  recently stated that the easiest thing to do in transferring  cryptographic currencies is for the developing countries to work most. 

 "In countries  where factors such as capital controls, highly variable currencies and  high inflation, management problems, payment transaction costs, and  local currency volatility are present, the situation may be worse than  in the case of crypto currencies, or at least in comparison to local  currencies we can see this kind of advantage for foreign  investors who live in developing countries like Brazil and who want to  send their money to Zimbabwe's barricades and therefore look for  alternatives as value stock. "

In a recent statement  by Goldman Sacshs, crypto currencies like BitCoin could become a legal  currency unit in some parts of global financial systems where  traditional currency functions do not work very well.