Crypto tech boom

Cryptocurrencies and technology are deeply, deeply intertwined. To be certain, cryptocurrencies and technology are inseparable. Cryptocurrencies can neither exist nor operate without technology. In essence, technology is the lifeblood of cryptocurrencies. Yes, blockchain, a decentralised and distributed ledger technology, is the foundational backbone of cryptocurrencies.

Blockchain performs three key functions: First, it records transactions across a network of multiple computers. Second, it ensures the security and transparency of these transactions. Third, once a transaction is recorded on the blockchain, it becomes nearly impossible to alter, safeguarding data integrity.

Cryptocurrencies and technology form an ideal partnership. At their core is cryptography, the science of secure communication, which encrypts and safeguards transactions on the blockchain. Cryptographic techniques are employed to verify the authenticity of transactions and prevent fraudulent activities.

Blockchain has self-executing smart contracts with the terms of the agreement directly written into code. Smart contracts automate processes, streamline transactions, reduce the need for intermediaries and make transactions reliable.

Yes, innovation and cryptocurrencies are also deeply, deeply intertwined, with one driving the other. In essence, cryptocurrencies are a catalyst for innovation. Cryptocurrencies stimulate innovation, such as improving blockchain scalability, increasing transaction speed, and creating interoperable blockchain networks that can communicate seamlessly.

Please consider these four facts. One, only 20 per cent of Pakistan’s adult population has access to formal financial services. Two, Pakistani women are significantly less likely to have bank accounts than men. Three, financial inclusion is much lower in rural areas compared to urban areas. Four, small businesses, farmers and low-income Pakistanis struggle to access credit.

Yes, cryptocurrencies can revolutionise financial inclusion in Pakistan as cryptos can be accessed through smartphones, bypassing the need for traditional bank accounts and physical infrastructure. Yes, cryptocurrencies can offer a faster, cheaper, and more secure way for the Pakistani diaspora to send remittances to their families back home.

Yes, cryptocurrencies can reduce corruption by eliminating the need for intermediaries and making transactions transparent. Yes, putting land titles on a blockchain will revolutionise Pakistan’s land registry system. Imagine, once a land title is recorded on a blockchain, it becomes immutable; no fraudulent alterations or disputes. Imagine, all transactions and ownership history will be publicly visible. Imagine, smart contracts-tamper-proof records, no fraud, no corruption.

Healthcare on blockchain – a tamper-proof medical record system. Imagine, tamper-proof digital diplomas and certificates. Imagine, peer-to-peer electricity trading. Yes, tamper-proof digital travel documents. How about conducting secure and transparent elections using blockchain technology?

Yes, automating insurance claims and payouts using smart contracts. How about using blockchain to facilitate direct trade between farmers and consumers, reducing the role of intermediaries? How about blockchain-based solutions to monitor carbon emissions? How about facilitating cross-border trade by simplifying customs procedures and reducing paperwork?

Pakistan, with its burgeoning tech industry, is uniquely positioned to harness the crypto tech boom. Pakistan must embrace blockchain technology – and revolutionise finance, healthcare, education, and agriculture. The future of finance is crypto. The global economy is heading toward tokenisation. The era of digital assets is upon us. Smart contracts are rewriting the rules of power. The blockchain revolution isn’t coming, it’s already here – and Pakistan must seize it.

The writer is a columnist based in Islamabad. He tweets/posts @saleemfarrukh and can be reached at: farrukh15@hotmail.com