Can blockchain education elevate FinTech?

Education, as in any sphere, can eliminate fear. The same applies to Blockchain and Digital Assets as well. FinTech, or financial technologies, are developed to help businesses and individuals get improved access to financial services. Blockchain, a cutting-edge FinTech, has introduced a completely new digital financial sector, and the world is slowly waking up to it.

FinTech companies are growing across the world, and so are the number of people using Digital Assets. The rise in the usage of cryptocurrencies can be attributed to the rise in DeFi (Decentralized Finance). However, the number of people avoiding Digital Assets (which includes Crypto and tokenized physical assets) is still huge, and this could be purely due to a lack of education with regard to the technology.

Digital Assets and Blockchain could be hard to understand for an average person. Unlike fiat currency, crypto and blockchain-related assets are intangible and involve computers, codes, etc. which are far outside the comfort zone of common people. It’s no surprise, therefore, that people tend to stay away from Digital Assets and Blockchain. The only way to build confidence in people would be to educate them about the technology and simplify the concept to a level where they begin to use it.

Blockchain education should be made available to non-blockchain users

Awareness can help people become more confident in using Blockchain-based products, be it for transacting or investing, or even for starting their own blockchain-based businesses. Fear is the main cause of volatility, and education can counter this by drawing more people to participate. The increase in the number of participants can also bring down price fluctuations caused by high volatility.

Blockchain is not just related to finance. It has several use cases unrelated to cryptocurrencies or digital assets, such as the implementation of smart contracts, identifying information, etc. Blockchain’s versatile nature makes it easy to implement it in businesses in any industry, such as education, healthcare, and travel, among others. Once people learn how it works, they can very easily integrate it with their businesses.

Raise awareness about the advantages and limitations of Blockchain

Blockchain has advantages as well as limitations, and the more people are aware of this, the more growth will be witnessed in the FinTech industry in the years to come.

Today, the market is an arena for scammers looking for opportunities to deceive beginners in the crypto world. Crypto scams beat any other form of payment method, which is why people should be made aware of how it works so that they can identify red-flagged projects and protect themselves from scammers.

Beginners should be taught never to share their private keys and seed phrases with others, just like they should not share their ATM pin or bank details with anyone. They should be made aware of how to identify and avoid tokens that are worthless and stay away from marketing hype.

Educate people in the developing countries

Not everyone has a bank account. This is true in developing countries where many people are in the low-income category. For a challenge as singular as this, Digital Assets can be a perfect solution. All one needs is an internet connection to create a digital wallet on a phone or computer, and transact with people across the globe. With a lot of Governments and central banks coming up with their own Digital Currency (Called Central Bank Digital Currency), it is more important than ever to educate people about the technology behind it. 

In developing nations, open-source Blockchain can be a great educational tool. Presently, it won’t be wide of the mark to say that Blockchain and Digital Assets are here to stay, evolve, and grow and that FinTech’s growth correlates directly with the level of education among the general population.



Views expressed above are the author’s own.


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