Page 53 - Zenith2024

| 4) Social Issues | 53

Not only disinformation but misinformation also plays a role in information asymmetry. As soon as
distorted information gets circulated, investors move, buying or selling stock at the instant. SNS also
can play a role in the circulation of fake information, potentially hurting the market. In the past few
decades, no effective measures were in place to stop what could devastate our entire economy. And
then blockchain technology entered the financial field.

You may have heard about blockchain technology.
This technology has a far larger meaning than just
being the backbone of cryptocurrencies; it is an
innovation that has redefined how we perceive
and manage data. In simple terms, blockchain
is a transparent, unchangeable, decentralized
digital diary that records transactions across many
computers. When a block of information is recorded
online, that data cannot be removed or modified. This ensures safety and trust and acts to counteract
attempts to distort information. When information is recorded, that information is distributed over a
network of different devices; this is the decentralization of information.

Blockchain computing allows for transparent, trustworthy transactions to occur. If a new block of
information is added to the system, it has to be verified by all users in the system. After and when
it is added to the system, everybody within the system can view that new block of information. This
is very promising for countering information asymmetry. The people within the blockchain system
do not have to trust each other, just the system by which everything operates on. Many companies
use private blockchains for internal transactions and this proves to be a highly effective way of
keeping track of information. In the case of lemon markets, a blockchain system just might provide
the adequate information and trust in that information to overcome the barriers toward an effective
transaction.

In an era where trust and security are vital yet rare, blockchain technology continues to gain
importance and influence over our everyday lives. A tamper free environment doesn’t mean that
it isn’t immune to hacking or other drawbacks that would potentially hurt the blockchain system;
those problems are a task that we must address together. Blockchain technology has potential and
has already proved to be a viable system to operate upon. For a future with transparent, secure
information provided for everyone, I’m willing to take the risks; this technology will be truly life
changing to everyone.

Lee Seunghyun (2-8)
Seunghyunleems@gmail.com