Could Blockchain Help Your Future Retirement Plans? – Article Review
A range of factors has put intensifying pressures on the US retirement system in recent years, leaving the industry facing a decelerating revenue growth outlook. Poor management, limited mobility, a lack of trust, an excessive number of stakeholders, and a lack of transparency are just a few of the problems that pose a threat to the ability of a sizeable percentage of the population to live peacefully during retirement. According to the article, blockchain technology has the potential to vastly disrupt the American retirement system in a positive way.
First, with blockchain, it is possible to have everything stored in one easy-to-access place which would give people a clearer picture of their retirement assets and perhaps incentivize them to invest more. A blockchain-based system would also allow employees to have all retirement accounts in one easy-to-access place.
Secondly, a shared decentralized ledger could help to remedy the lack of faith in the US financial institutions by increasing transparency. In such a way, citizens would be more likely to make smarter investment decisions, driving economic growth not just for themselves but in the markets overall.
What is more, incorporating blockchain into this system would result in speedier turnaround times and potentially lower transaction costs, improving service delivery, as blockchain doesn’t require a third-party intermediary to validate transactions.
Finally, blockchain technology is more difficult to hack. Information on the blockchain network is in a shared database that exists on millions of computers rather than in one central location. That decentralized structure makes it more difficult for any person to penetrate the network & steal data or funds.
To sum up, blockchain adoption in the US retirement system would benefit both the government and its citizens. However, this innovational change is possible only under the existence of the government policy regarding blockchain technology (which currently is lacking). Adequate and appropriate government regulation would create an incentive for investments in blockchain technology and it would also build trust around it, making its widespread adoption easier.