Blockchain protocol has revolutionized the way the world looks at data storage mechanisms. Specifically, P2P networking helps achieve this decentralized distributed consensus by combining the advantageous appliances of blockchain and P2P design. With that, a new era of data management and financial asset storage sprouted and came to life. With the creation of the first blockchain digital currency, Bitcoin, in early 2009, many researchers and like-minded visionaries recognized the potential of independence that this technology holds.
With the concept of centralized organizations controlling operations from digital commerce to financial industries, it is evident that in a world of growing and ambitious individuals, these types of organizations hold threat to the advancement of both the world and the way social structures are molded.
Throughout history, it is seen that all centralized entities have their downfall as social structures advance and humanity progresses. Leaving the power held to a select few to determine the
future of evolvement of humanity is the exact reason why blockchain P2P networking was created. Aside of common known centralization problems, lack of privacy adds a second issue, not only to traditional financial systems, but to cryptocurrency transactions as well. Financial privacy has become a rare and valued commodity; purchases performed via credit cards and bank transfers are monitored. It is possible to determine a lot about one person by analyzing spending habits. Sensitive financial information is currently being stored in systems that are highly vulnerable to being compromised.
As Bitcoin came to solve some centralization problems by providing the liberty of transacting with others without third parties involved, it has not, however, been able to provide complete financial privacy as transactions can still be linked to individuals.