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CZ on trust and blockchain

Thu 15 Jul 2021 ▪ 16h00 ▪ 2 min read — by Greg Hansen

Changpeng Zhao (CZ), a crypto billionaire and CEO of Binance, the largest crypto exchange in the world, mentioned in one of his latest tweets the main reason why we use blockchain in the context of financial ties. Yes, that’s right — it is all about trust.

In God we trust, for everything else, use blockchain

It is hard to overestimate the importance of distributed ledger technology (DLT). Ten years ago Satoshi Nakamoto designed Bitcoin seeking to create a financial instrument operating without intermediaries, which would free market players from relying solely on trust. 

According to Nakamoto, trust is too fragile to be involved in finance and trade. Bitcoin became a self-sufficient system allowing users to exchange material assets in a digital form and forget about such things as financial institutions policies, inflation or geopolitical boundaries.

In addition to monetary relations, blockchain technology can be applied to plenty of other areas. DLT is now actively used for:

  • tracking supply chains of goods
  • quality control of goods and commodities
  • authorship and ownership rights confirmation
  • luxury items and precious metals authentication
  • data management
  • personal identification and user data protection
  • electronic voting systems

Blockchain technology is truly conquering the world. It proves to be the only possible option for financial areas related to “trust”. Blind faith is the actual root of the problem when it comes to identity theft and counterfeit goods, which still appear to be quite common in our day-to-day lives.

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Greg Hansen avatar
Greg Hansen

Belgium native who has a passion for writing. Since 2015 I have understood that the blockchain will radically change our lives, and I absolutely want to share my findings with you!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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