In the past two decades, the entire world has seen a tremendous amount of development and progress in every sector. The sector that has achieved many milestones in the past decade is cryptocurrency and blockchain. With so many advancements taking place in the crypto-blockchain industry, the potential and the benefits offered by this sector are growing with passing hour. In this industry, new projects are initiated in huge numbers, and products are given birth as a result of these efforts.
However, it has become somewhat of a rule that every invention has its advantages and its disadvantages, and the crypto-blockchain industry is no exception. On one hand, the decentralized nature of the cryptocurrency and blockchain sector has managed to provide users the convenience of performing trades without sharing any personal information, rely on any mediator (Governments or Banks) or the fear of losing their assets in any case anything were to happen to their respective blockchain or exchange they are connected with. On the other hand, this leaves the crypto-blockchain with uncertainties of regulations, scalability, and reliability.
Although there are many countries around the world who have recognized the importance of the crypto-blockchain industry and its technology, recognizing it as the future of financing and the sole entity that can layout the foundation of the prosperity of their governmental, private and public sectors, there are, however, many countries including the United States of America, who still have their doubts around the crypto-blockchain technology and requirements for them to be regulated before they add this technology into their laws.
Even though the world is still progressing towards the crypto-blockchain technology and enjoying the benefits they are able to acquire in the form of crypto-assets, there are still a lot of risks involved that pose a threat to the entire user community. A few very important drawbacks are cyber-crimes that have been on the loose since the internet came into being and for such fraudsters, crypto-blockchain as a decentralized platform is like a walk in the park to run their scams and deprive people of their digital assets and still be unharmed.
The second problem is the crypto-blockchain’s ideology of having no regulations, which has its benefits for the users but also imposes danger for the future of decentralized financing through the blockchain industry. With no rules and regulations, users borrowing money from the DeFi platforms will simply not worry about ever returning the money as their personal information was never shared, to begin with.
Through the DeFi loaning platform, there are high chances of criminals and illegal groups to do money-laundering, an act which is highly punishable by all the countries in the world.
However, there are some economic giants, who in order to save the sovereignty of the traditional currency issued by the Governments, are trying their best to sabotage the entire image of the crypto-blockchain industry because of these potential crimes. However, one should always be aware that crime is committed in every field and every sector and just because of a few crimes, the entire industry cannot be blamed and as a result, banned from operating entirely.
