With the recent interest in Blockchain and the supposed benefits that it has for users, Bank of Canada has decided to investigate this topic. In one of their most recent research papers they uncovered that blockchain’s attractive features are not particularly unique.
A brief history of the blockchain
What is Blockchain? In the last couple of years, it has become a safe platform for transferring funds easily from one country to another. It is also responsible for creating a new platform through which cryptocurrencies like Bitcoin or Litecoin, among many others, can be exchanged.
What does this new research paper reveal?
Bank of Canada has done some investigations into this matter and it has found out a number of things about Blockchain that were not easily predictable. For starters, the main features that blockchain says are part of their cutting-edge technology are quite common. We are talking about their type of encryption and their use of smart contacts.
The author of this research paper, Hannah Halaburda, stated that all this hype that was created around blockchain is in fact hurting the economy. How is this happening? Well, the number of startups that reference blockchain have been evaluated very optimistically so far, a factor that needs more time to be looked at.
What did the Bank of Canada have to say about this?
They issued a statement saying that the conclusions of this research paper do not mirror their own beliefs and are just a pure reflection of the author’s thoughts.
So far, many institutions in Canada have started to look into the real life applications of blockchain style technologies, including Bank of Canada. It will be interesting to see how this new technology is going to influence and hopefully improve the payment system and how it could be integrated into other fields as well.
Shawn and his wife live remotely in a 880-square-foot cabin along with their three dogs. They implemented many of the things they learned from the internet and trial and error. They have been helped by so many contributors over the years and desire to now return the favor to other Canadian Homsteading readers. They heat with a woodstove and cut firewood by hand from their 11 acres. They went back to the land and are essentially do-it-yourself people.