The Argument for Peer to Peer Transactions
The current financial system in many, if not most, nations is antiquated, inefficient, and prone to disastrous mismanagement and corruption. With very little transparency, and complete centralization, the money of all lays in the hands of very few institutions and financial agents, who often fall prey to making decisions in accordance with their own self-motives. The most recent and obvious illustration of this came in the shape of the 2007–2009 financial crisis, which is widely regarded as the worst since the Great Depression of the 1930s. Conservative reports reveal that the 2007–2009 financial crisis cost the United States an estimated $6 to $14 trillion — the equivalent of $50,000 to $120,000 per household. The consensus amongst leading economists is that deregulation, compounded by the “systematically lax assessment of risk” by major credit rating agencies; faulty assumptions about the housing market, and; loose mortgage underwriting, emboldened risk-seeking banks and institutions to engage in reckless, self-serving behavior. In short, bourgeoning systemic risk undermined the stability of the global economy. Without a widespread societal reliance on these leading institutions, banks and ratings agencies, the crisis would likely have never materialized in the first place.
In the aftermath of the market crash, the United States thoroughly reformed the laws governing Wall Street, making the movement of money relatively seamless, safe, and efficient. Many countries, in fact, now have financial systems and institutions in place that work well and provide undeniable benefits to the general public. However, still, in many nations across the globe, there are no such reliable institutions to speak of; and consequently, people are forced to place their trust — and their money — in the hands of unstable banks and governments. But now, Blockchain technology, and Bitcoin in particular, provide an alternative to these old and antiquated “trust-based” financial systems and intermediaries in countries lacking strong and/or stable financial systems — eliminating much of the inherent systemic risk associated with traditional money services.
At its very core proposition, Bitcoin presents a viable alternative financial system. In the first line of Bitcoin founder Satoshi Nakamoto’s now famous introductory paper in which he states: “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments.” Satoshi goes on to point out how this reliance on central banks and government entities has and continues to prove dangerous to the financial well-being of the general public. Bitcoin, as he notes, is a trustworthy and reliable alternative to the current financial system that presents no conceivable pitfalls or systemic risks. To Satoshi’s point, the widespread adoption of Bitcoin as the people’s primary choice of currency could forge a new decentralized financial system that is built upon the core values of financial security and accessibility. In countries without a stable economy or financial system, Bitcoin (and possibly other cryptocurrencies) presents a welcome alternative.
But, the widespread adoption of cryptocurrencies, and the possibility of Bitcoin and other blockchain-based cryptocurrencies replacing the current financial system (or presenting a viable alternative to it) is unlikely to materialize unless cryptocurrencies are adopted in masse by large institutions and the general public alike. Largely, this is because cryptocurrencies are challenging to use, and the prospect of purchasing and transferring crypto coins quite often deters buyers from using blockchain-based purchasing platforms. More specifically, crypto wallets far and wide are generally (a) difficult to use and prone to data breaches and/or hacking (i.e. problems with accessibility and security); (b) lacking decentralized solutions when associating a user’s e-mail address, phone number, or name to public keys; and, © devoid of a multi-currency approach that offers data privacy. However, Stibits presents a new and viable platform that resolves these difficulties often associated with buying, selling, and transferring cryptocurrencies. Stibits, in short, erodes the barriers in place for the widespread public and institutional mass adoption of cryptocurrencies. In effect, Stibits creates a viable path for Bitcoin and other cryptocurrencies to forge a new, decentralized financial market.
Stibits, allowing for the seamless and secure transfer of Bitcoin and other cryptocurrencies, would lay the foundation for a new alternative financial ecosystem — one in which consumers would no longer be forced to place their trust in the hands of large financial corporations and banks. As we now understand, these corporations and banks are by no means too big to fail. Thus, a shift to a decentralized platform and currency, from the current outdated and unreliable financial ecosystem would undeniably revolutionize the way that we all think about and interact with money.
One might rationally question: but what about those who have no proficiency in cryptocurrencies, Bitcoin, or blockchain technology? How accessibility would the purchase and transfer of digital currency really be? Well, the need for expertise in Bitcoin and blockchain technology would be unnecessary, thanks to Stibits. More specifically, Stibits has eliminated the need for individuals to have any prior expertise or background knowledge of cryptocurrencies or blockchain technology in order to quickly and easily send or receive cryptocurrencies in a secure manner to/from their family, friends, or loved ones. Specifically, on the Stibits platform (as opposed to most, if not all other current crypto exchange platforms), there is no need to enter a lengthy cryptocurrency address — often too difficult to type out for even those proficient in the field. As a result, exchanging cryptocurrencies is manageable for everyone no matter their age, technical proficiency, or level of intelligence. Users on the Stibits platform can very simply send or request cryptocurrency by entering the name, email address, or phone number of the desired recipient — with no strings attached.
Sending and receiving Bitcoin and other cryptocurrencies has never been easier, and as a result, the barriers for the widespread adoption of Bitcoin have been largely knocked down. Consequently, the possibility of an alternative Bitcoin and blockchain-based financial system seems all the more realistic.
With this in mind, governments and large, centralized banks are incentivized to leverage Blockchain technology in their favor — and in many cases, as a recognized supplement to the current systems in place. By embracing Blockchain technology, banks and centralized authorities would certainly be able to garnish more trust from their populace, allowing more transparency, and in turn, flourish by building a safer, stronger, and more profitable operation in the long run. Furthermore, embracing the advances of Blockchain technology and leveraging it into modern financial systems (i.e. centralized banks and government run banking authorities) would undoubtedly create a stronger, more trusting relationship between people and their banks/and or governments. In this framework, Stibits would aim to work side-by-side with regulators and other relevant third party overseers as to lay the foundation for a Blockchain-centric banking system, thus eliminating many if not all of the systematic risks traditionally associating with modern, centralized banking systems. Thus, Stibits would strive towards developing solutions for banking systems that, in leveraging blockchain technology, would help reduce the occurrence of wrong address transactions; help ensure safety in money transfers; and keep data secure.