Cryptocurrencies: restoring trust from technology

Privacy, transparency and trust will be key for cryptocurrencies to restore the path of growth.

By Jorge Rubia Antúnez and Samir El Souki *

The cryptocurrency sector, led by Bitcoin, has closed in 2022 a very turbulent year. The fall in their prices has also had an impact on confidence from the investors, whose base had increased significantly thanks to the popularity that this type of investment had been charging.

Some experts consider that one of the factors that explain its recent crisis lies in the arrival of a large number of users who sought to have excessive and immediate returns on their investment, with little commitment in the financial market. This is an ideal breeding ground for speculation, risky bets and the emergence of financial bubbles.

There are even those who see the crisis as a positive aspect, because they believe that it will help differentiate serious and viable projects from those that were not sustainable in the market. But regardless of what happens to their value, many specialists and investors believe that the technology behind cryptocurrencies will be an important component of the financial infrastructure in the future.

Companies and organizations in this sector will undoubtedly have to take action aimed at restoring confidence to investors. This is an indispensable measure for those who want to continue in this industry in the medium and long term. To this end, there are several lines of action under discussion, including alternatives to increase transparency and there is even a debate already opened by the sector itself to incorporate more regulations and control by governments.

BUILD TRUST FROM TECHNOLOGY

From a technological point of view, privacy and transparency will continue to be fundamental pillars for cryptocurrencies. And also secure digital signatures that allow to maintain the integrity and validity of the information, which would imply improving the data hosted on the network.

Technology platforms can also contribute to the growth of the sector, mainly those that improve accessibility to financial concepts for common users. Currently many applications are complex and difficult to manage for users, which in the end can affect their use and discouraging investment.

In this sense, one aspect to improve is the UI/UX (User Interface / User Experience) user experience so that they access applications and their tools in a much more fluid and natural way.

Technological solutions can contribute to provide more transparency to cryptocurrencies for the user or investor. The use of blockchain always allows to maintain the integrity of the data, immutability of information, as well as the principles of decentralization.

Cryptocurrencies: restoring trust from technology

Source: Forbes Centroamérica 
Author: Jorge Rubia Antúnez y Samir El Souki 
*The authors are CEO & founder of Coderland and *Senior Developer & Blockchain at Coderland
Criptomonedas: restableciendo confianza desde la tecnología (forbescentroamerica.com)