Can Blockchain Education Elevate FinTech?

Education, as in all spheres, can eliminate fear. The same applies to Blockchain and Digital Assets as well. FinTech, or financial technology, is designed to help businesses and individuals gain improved access to financial services. Blockchain, a cutting-edge FinTech, has introduced a whole new digital financial sector, and the world is slowly waking up to it.

FinTech companies are growing worldwide, and so is the number of people using digital assets. The rise in the use of cryptocurrencies can be attributed to the rise in DeFi (Decentralized Finance). However, the number of people who avoid digital assets (which includes crypto and tokenized physical assets) is still huge and this can be solely due to a lack of education regarding the technology.

Digital assets and blockchain can be difficult to understand for the average person. Unlike fiat currency, crypto and blockchain-related assets are intangible and involve computers, codes, etc. that are far beyond the comfort zone of ordinary people. It is therefore no surprise that people tend to stay away from Digital Assets and Blockchain. The only way to build trust with people would be to teach them about the technology and simplify the concept to a level where they start using it.

Blockchain education should be made available to non-blockchain users

Awareness can help people become more confident in using blockchain-based products, whether for transactions or investments, or even to start their own blockchain-based businesses. Fear is the main cause of volatility, and education can counteract this by drawing more people to participate. The increase in the number of participants can also reduce price fluctuations caused by high volatility.

Blockchain is not only related to finance. It has several use cases that are not related to cryptocurrencies or digital assets, such as implementing smart contracts, identifying information, etc. Blockchain’s versatile nature makes it easy to implement in businesses in any industry, such as education, healthcare, and travel, among others . Once people learn how it works, they can very easily integrate it with their businesses.

Raise awareness of the benefits and limitations of Blockchain

Blockchain has benefits as well as limitations, and the more people are aware of this, the more growth we will see in the FinTech industry in the coming years.

Today, the market is an arena for fraudsters looking for opportunities to deceive newbies in the crypto world. Crypto fraud beats any other form of payment method, which is why people should be made aware of how it works so that they can identify red-flag projects and protect themselves from fraudsters.

Beginners should be taught to never share their private keys and seed phrases with others, just as they should never share their pin or bank details with anyone. They should be made aware of how to identify and avoid tokens that are worthless and stay away from marketing hype.

Educate people in developing countries

Not everyone has a bank account. This applies in developing countries where many people are in the low-income category. For such a special challenge as this, Digital Assets can be a perfect solution. All one needs is an internet connection to create a digital wallet on a phone or computer, and trade with people all over the world. With many governments and central banks coming up with their own digital currency (called central bank digital currency), it is more important than ever to educate people about the technology behind it.

In developing countries, open source Blockchain can be a great educational tool. For now, it would not be a stretch to say that Blockchain and digital assets are here to stay, evolve and grow, and that FinTech’s growth correlates directly with the level of education among the general population.

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