Blockchain technology has lots of potential that it offers in various industries, however, without favorable and strict regulations and policies it is mostly a disaster waiting to happen.
For example, blockchain is used for secure and fast transactions in the financial industry and can foster illegal transactions if there are no regulations.
On the other hand, it can enable innovations around financial services with the right regulations and policies.
Now, this is just an aspect of where blockchain finds use, there are so many use cases. Several factors are indeed responsible for the development of technology, regulation holds a precarious position.
It can either make or mar blockchain technology development and implementation. With the right, supportive regulations, people and businesses have more faith and are encouraged because of the perceived legal backing of the technology to trade and invest in cryptocurrency.
When regulations are stifling and overly restrictive, it raises a lot of difficulties and this leads to lower adoption rates and most of the potential of the blockchain potential would be left untapped.
Blockchain regulation across the globe should be unanimous with little or no variations since blockchain technology is a worldwide market, and people who use the technology do so from various countries.
If the regulations vary greatly, the development and implementation will be affected greatly too. The government is charged with the responsibility of providing regulations that would encourage the development and implementation of blockchain technology.
Regulations that are clear and provide clarity for all blockchain use cases and when innovations occur, they should readily provide new tailored regulations alongside.
In addition to favorable regulations, the government can as well provide funding for further research and development in the sector, increase adoption by educating its citizens and increasing awareness of the technology, and at the same time addressing misconceptions around blockchain technology.
The government can also collaborate with industry leaders or private organizations to address concerns raised by the use of blockchain technology, one of which is its energy consumption.
Together, it is easier to tackle the problem and proffer effective solutions. Supporting individuals and businesses to use blockchain technology to conduct their business transactions will also go a long way to encouraging the use of the technology.
Furthermore, the government can go ahead and use it to conduct its affairs. Not only will this make their work easier, it will also increase transparency, and accountability as well as reduce corruption.
This would even garner citizens’ trust in the government as well. Imagine using blockchain technology for elections, with its decentralized state this guarantees elections can be monitored in real-time and tracked effectively.
Results too cannot be manipulated, as blockchain technology has strong immutability features. There is so much more the government can do to increase the development and implementation of blockchain technology, the above is merely scratching the surface.
However, pending their involvement, a favorable regulation will advance the blockchain technology cause.
In conclusion, the role the government plays coupled with the right regulations would go a long way in shaping the development and implementation of blockchain technology.
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