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Web 5, The new digital revolution!

Since the emergence of blockchain technology, or more commonly known as a blockchain, we know that it allows several interconnected nodes or computers to approve exchanges of information for subsequent verification and recording, reducing the likelihood of errors.

The World Economic Forum and Forbes define blockchain technology very similarly, as a shared digital ledger that allows the storage and maintenance of data in a more transparent and verifiable way.

Harvard Business Review, meanwhile, defines it as a distributed database whose list of ordered records, called "blocks," are kept constantly growing.

But, taken to everyday life and in terms more familiar to the people who use it, blockchain is the technology that enables the mining of cryptocurrencies, and what makes their decentralization from traditional economic systems possible. 

On the other hand, wallets are virtual wallets that allow the management of cryptocurrencies, perform transactions and, depending on their capacity, these can vary in their functions, which allows users to get a little closer to the crypto world. 

Blockchain, much more than cryptocurrencies.

Can you imagine living in a world where this technology allows you to do things you would have never imagined before? Can you imagine having at your fingertips the possibility of buying a house through the blockchain, or going on vacation and being able to send all your authenticated papers directly, without bureaucratic procedures or long waiting times, for example to get your passport or visa? Or, being able to have at hand in a safe, fast and reliable place all your documents and you decide who can have access to them and who cannot?

Let's not go too far, since blockchain is much more than mining and cryptocurrencies and it has proven to be successful in sectors such as: finance, education, health, energy, manufacturing, among others. salud, energía, manufactura, entre otros.

For example, in banking it is very effective for currency exchange and international transfers in real time.

It is ideal for registration and tracking of copyrights and patents. It is used to determine the origin of ingredients or food in the supply chain. In the manufacture of products, it helps to determine their sanitary processing.

In pharmacy it allows the verification of the origin of medicines and in health it unifies the medical history of patients. In logistics, it tracks products throughout the distribution chain.

Currently, we can see how the blockchain has been incorporated into different scenarios, so the information and the use of your data are a fundamental part in the development of processes that go from being manual to being digitized.

An example of the above is the Republic of Palau, which is incorporating NFT ID cards for its citizens, on the BNB blockchain, in order to incentivize its digital residency program. 

Impact on the global economy

The effect of this change in transactions induces a level of economic efficiency through the increase in the velocity of money, which represents a higher growth in GDP that can be projected as a multiplier in inflation, as we are experiencing today, because monetary policy models always assume a constant velocity of money, there are no studies yet that can capture the effect that these new technologies have on the economy. 

However, this new revolution will be accompanied by a great recession that will mark the beginning of a new decentralized economic system where central banks will have a very important role, as their tools will tend to lose effect on the economy because transactions happen faster than they can process them and they will be forced to replace their current tools with methods that integrate the new decentralized transactional systems. 

Yet if their decisions are restrictive for the blockchain industry, this could prolong the recession to the point that inflation serves as a stress test to sovereign debt repayment capacity and credibility is lost in the Standard & Poor's Credit Rating system when they go into Default and the "safest asset in the world" (US10Y Treasury Bond) loses risk-free asset quality.

Effects on everyday life

Let's imagine much more specific, everyday scenarios in which the development of this technology is an ally that brings us incredible benefits. Suppose we can have control of all our information in a device so secure that only you allow who can see it and who can't (this would be possible thanks to hardware wallets and public and private blockchain systems).

In the future with Web5, there will be devices that allow identification, authentication and decentralized access to nodes within the Web, which will facilitate agencies to deploy tokenization protocols that allow the migration of processes and bureaucratic procedures, which depend on third-party verifiers for approval and validation, and in that sense can be done without intermediaries.

Let's think that a person can have in a hardware wallet an NFT that represents his house, car and other public instruments that, at the time we want, we can make them visible to the person or institution we want, with just one click, we can connect it and offer it in a marketplace, without the need for transfers or notarial processes.

The above examples simplify a very useful application of blockchain in digital identity issues. But it could also be evidenced in legal issues, avoiding impersonation, in writing processes it shields the processes avoiding the generation of false documents. This same principle would be applied in the education sector as a mechanism of authenticity in academic certificates, and likewise in different areas.

Would you like to maximize the benefits of the crypto ecosystem? Remember that if you have a business, you can receive payments in cryptocurrencies with Pluto Crypto POSIn addition, you can manage your assets, send and diversify your portfolio easily and intuitively in PlutoWallet.

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@spartanhill

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