To what extent security printing can contribute to blockchain
As bitcoin is a digital currency and not backed by any authoritative body like other tangible currencies which include the dollar, Euro, and pound. For example, the dollar being fiat money which means that the currency is backed by the government rather than being backed by commodities like gold. Whereas bitcoin is backed by blockchain technology which keeps and secures the record of all transactions on the network.
The idea of secure document production in a form of paper money is generally holding the perception of being trustworthy and secure in our financial system. The real question is why not a decentralized system. As most of the central banks are moving towards digital money systems. How relevant would cash be in the future?
As the emergence of bitcoin resolved the most critical issue of “double-spend” through cryptography, eliminating the threat of counterfeits, and stretching the stereotypes structures of payments, and redefining the existence of financial capabilities. If you have not used or traded bitcoin yet, then there are platforms like bitcoincircuit.biz that can help you to understand it in an easier way. What attraction or logical explanation is left to counter the significance of security printing?
Besides the fact that the world is shifting from physical to digital, but we cannot ignore the reality that we live in a physical world where physical goods are still exposed to counterfeiting.
Considering the above scenario, security printing can play an essential role in securing the blockchain. The best way to secure the private keys to a cryptocurrency address is through a hardware wallet, many inventors prefer to store user’s keys in a hardware wallet instead of software wallets. Now, these wallets are sold online after manufacturing and sent on to buyers. Hardware wallets being tangible are not immune to counterfeiting, in order to make things free from counterfeiting, secure printing and design of these wallets can make it verified as authentic and original.
Cryptocurrencies are constantly being criticized regarding legitimacy. The role of cryptocurrencies in illegal activities, the threat of being hacked, chances of fraud, all these aspects add up to trust issues. Cryptocurrencies are still lagging in areas like dependability and stability, which makes the existence of virtual currencies less attractive to some people.
Cryptocurrencies portray an image as individualist and anti-authoritarian, an appropriate solution to this could be the production of banknotes, which can elevate the element of trust which would improve the existing image of digital currencies, making it a more trustable area of investment.
When it comes to the privacy of cryptocurrencies, the false belief that all transactions are hidden is a misconception, the ledger is open but verifiable. The balance between liberty and safety regarding blockchain is an interesting thing to look into.
Cash is the most used and privatized form of money. It does not require any on-boarding or KYC process. On the other side, cryptocurrency requires a lengthy setup, boring sign-up procedure.
The security printing involvement to enhance the digital currencies’ existence is something that might never happen, or it if happened then it will take many years to incorporate it. Besides the existence of the use of debit/credit card as a method of payment is something that shows that in the near future the importance of cash would decline.
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