Millennials are now grown up and can no longer be defined as the youngest, most spoiled member of the family. Instead, millennials are seen as tech-savvy consumers that have matured alongside the internet, and can understand and appreciate the benefits of emerging technologies, such as blockchain. Blockchain technology is a natural fit to the millennial lifestyle and these are some of the reasons why:
Blockchain promotes straightforward communication and seamless flow of information
Millennials demand instant gratification, therefore dealing with third parties, filling long forms and following any form of bureaucracy in the era of high speed internet feels like a waste of their time. Blockchain technology builds itself on the idea of creating a decentralized world where no central entity acts as the main point of contact between two or more people sharing information. Currently, we live in a world where each financial transaction has to go through a bank or financial entity. Blockchain aims to change the way information flows by promoting a technology that allows peer-to-peer transactions and eliminates the middleman. Blockchain technology facilitates the creation of decentralized protocols, which is one of its biggest advantages over today’s centralized alternatives: “Unlike banks, which can be hacked or robbed due to their use of a central storage for both data or assets, Blockchain-based platforms are almost impossible to infiltrate as it would require access to every computer system on the network simultaneously to succeed.” Central authorities and middlemen in charge of transactions charge fees for their services and make the process long and tedious, by creating decentralized alternatives, blockchain holds the promise of facilitating cooperation and creating seamless flow of information between users.
Blockchain provides effortless payment options and creates new financial alternatives
Millennials are constantly broke. They are earning less than previous generations, yet they manage to plan last minute vacations and expect to have access to the latest fashion trends and tech devices available on the market. Millennials grew up in a world where consumption is encouraged 24/7 and where any purchase is possible by owning a credit card and clicking ‘purchase now’. In a society where a savings account is almost a luxury and big corporations own most of the businesses, cryptocurrencies promote a reward model that democratizes the economic model as we know it. As HBR explains: “In a world without middle men, things get more efficient in unexpected ways. A 1% transaction fee may not seem like much, but down a 15-step supply chain, it adds up. These kinds of little frictions add just enough drag on the global economy that we’re forced to stick with short supply chains and deals done by the container load, because it’s simply too inefficient to have more links in the supply chain and to work with smaller transactions. The decentralization that blockchain provides would change that, which could have huge possible impacts for economies in the developing world. Any transformation which helps small businesses compete with giants will have major global effects.”
Cryptocurrencies operate under the premise that all users have access to a public digital record of every transaction that has taken place. The blockchain is a digital ledger where all of the information is stored, across a number of computers that belong to cryptocurrency holders. Additionally, cryptocurrency presents itself as an appealing investment opportunity with huge potential for growth. ICOs are essentially crowdfunding opportunities that raise money in order to get a project to the next stage of development. This provides millennials easy access to investment opportunities and gives them the chance to get involved in new and exciting projects from their inception. As explained by the Foundation for Economic Education: “The 2008 financial crisis traumatized a generation. They no longer trust banks. Conventional financial markets are driven by electronic trading, and there is no way to beat the market in the short run. Plus, there is the draw of the new and techy. Young people have no assets but they do have tech skill. Crypto markets are easy to get into and you are rewarded for knowing your way around.”
Blockchain boosts entrepreneurial skills and creates a new world
Millennials are constantly looking for meaningful life experiences. They’re easily bored and expect to find a sense of purpose in every activity they engage with. As a result, many of them quit their promising full time jobs in search of ‘new experiences’ abroad or to launch their own businesses from a very young age.
According to Forbes, “blockchain startups raised $5.6 billion in funds in 2017, mostly driven by community campaigns. More than having a stake in the future, millennials want to use blockchain technology to build it with their own hands. Millennials love the internet, but this also makes them intimately aware of its downsides, namely that it only exacerbates media bias, corporate control and political obfuscation. Many in this age group see open-source blockchain technology as an accountability tool, one that will create a better system for voting, sharing data and advertising for instance.” Unlike their predecessors, millennials’ career dreams are not focused on climbing the corporate ladder to become a CEO or a President. Instead, their goals involve starting their own business, and blockchain technology is the foundation that makes the creation of any project they have in mind possible.
Blockchain empowers the millennial lifestyle in many ways, from the possibility of becoming a part of the platforms they believe in (investing in their ICOs), to building their own decentralized platform to create whatever they think society needs. Blockchain is the tailor-made technology that provides freedom and endless possibilities to a generation that has been trying to escape from the structured lifestyle that defined their parents.
About Alexander Lopatine
With more than twenty years of international business experience, Alex Lopatine is recognized as a visionary strategist in the realms of finance, banking and technology. His leadership has leveraged technological innovations to disrupt entrenched industries for the benefit of consumers, investors and partners. Currently Alex wears many hats, including Chairman of WYSH, Executive Chairman of Blockchain Shift, one of the crypto industry’s most anticipated events; Managing Partner of Park Capital, an investment and advisory firm focused on the digitization of retail banking, and leveraging blockchain technology for the companies in its growing portfolio; Managing Director at Paladin (paladin-fs.com), a reputable consulting firm in the banking space, where he leads the newly-created Fintech Advantage practice. He is best-known for starting up Nymbus.com, the software system revolutionizing the banking industry through a modern and holistic approach to core infrastructures.
By Alexander Lopatine