Hey! I’m taking you through fun ride today. Still clueless? You are going to get exposed of the history of money, from barter system to blockchain technology. Are you already getting a hint of how advanced and organized we are now compared to back then?
Barter system was invented when money has not been introduced yet into the financial and economy system. It was introduced by the Mesopotamia tribes which later it was adopted by Phoenicians. 1920 was the era where everything works through batter system. For instance, you can exchange a bag of rice with two bottles of milk in return with another person that wants rice.
Now, just imagine how cool it would have been if we are still living in the barter system’s world. You can exchange your locally-made car to foreign-made in a wink.
However, conflict may arise if your opinion does not comply with the receiver. For instance, if he/she is not in favour with your goods or service, then there will be a thin chance to get hold of what you want. Then comes the valued traditional money system in physical notes and coins form.
Oh snap! I’m assuming my first half of article sounded like your mind-numbing history class. Alright now I’m getting to the bottom of it.
Fast forwarding back to 2019, the disappearance of barter system and emergence of blockchain technology. Even though blockchain technology has not been used widely yet, it is still playing its role somewhere around the world. There are good and bad side of this advanced technology whereby not everyone will benefit nor loss. It all works from the mind frame of one’s perception.
Till to date, majority of the people still rely on traditional money system as it has low risk compared to blockchain technology. Blockchain technology can be considered as the fastest transaction method, where everything will be done at that point of time.
It is just that, blockchain technology’s transaction will be recorded digitally, which barter system don’t as it involves individuals face to face. According to ccoingossip, blockchain technology is like an internet democracy by the people, for the people and to the people.
Blockchain itself acts as a decentralised ledger with multiple nodes in the network that, the transaction must be verified by all of the nodes.
I hope that you’ve got a glimpse of how did the financial system developed, especially to those that have not ever thought about any of these.