Blockchain payments are a perfect match for Gen Z
The emergence of blockchain technology and its related features and benefits have started being widely used and adopted in the last 2 years globally.
With a range of different use cases, blockchain technology has been adopted across several industries, with prominent examples being in the world of supply chains and payments.
Blockchain technology is regarded as the safest, most reliable and efficient way of transferring and storing value, without any third party involvement. While people of all ages are starting to realize the untapped potential of blockchain integration, the concept of blockchain technology is increasingly being accepted by a large chunk of the world’s population, most notably, the Generation Z.
Generation Z is typically assumed to consist of individuals who are born after the mid-1990’s till the mid-2000s. It makes up a large chunk of the population, as indicated by a 25% population share of the current U.S. population. Generation Z consists of digital natives. The reasons behind their increasing reliance on technologies such as blockchain can be attributed to a variety of reasons. Trust is a major factor here, as they do not fully trust today’s centralized institutions and systems, citing government intervention as one of the main reasons. Thus, a direct correlation has been seen between the generation’s lack of trust and their high rate of adoption of crypto assets and other blockchain use cases.
Let’s also look at other socio-economic reasons why blockchain is increasingly being adopted by this generation.
New and efficient way to store value: Over the years, the ways to store value and investment has been changing drastically on the global landscape. Unlike prior generations that introduced gold, and equities as a viable investment option, Generation Z individuals increasingly look for decentralized options in today’s world. This can directly be attributed to the general distrust of Generation Y towards any centralized entity, citing third-party involvement as a major reason. This is also considered by many analysts as the driving force behind the future of crypto-assets and their mainstream adoption.
Lack of trust on traditional financial institutions: There is a general consensus among Generation Z members causing them to steer away from traditional financial options. Many individuals have already lived through major economic crashes throughout the world, such as the financial crisis of 2008 which involved centralised institutions. As such, individuals today are weary of involving themselves with banks and other government- controlled financial institutions. In a world that is increasingly being digitized to develop complex but efficient financial systems, digital trust has become increasingly important. Generation Z, thus, prefer blockchain integration which is creating digital scarcity and native digital trust on a global level.
A new way of crowdfunding: The emergence of start-ups on the global stage has highlighted the importance of crowdfunding methods. Through blockchain, raising capital via token sales or initial coin offerings has presented individuals with an almost foolproof method of capital generation. This is because of the existence of a degree of safety and trust, where contributions made go directly to the intended party of the project.
Online anonymity: Online anonymity is a highly controversial feature of blockchain technology, and has been described as a “Double-edged Sword’ by many industry experts. Online anonymity is increasingly being preferred over open social media interactions for a variety of reasons. Industry analysts believe that the demand for online anonymity and security of personal information will only grow exponentially as Gen Z grows into maturity.
Freedom of speech: Freedom of speech is another important reason why many individuals across the world are preferring blockchain. Individuals view the transmission of information through blockchain networks as an important requirement, especially in countries with high levels of public censorship. By tapping into the decentralized nature of the blockchain, information can now be transferred without the fear of censorship, no matter where in the world it originates from.
The Blockchain technology is almost tailor-made for Generation Z, an entrepreneurial, tech savvy and socially aware chunk of today’s population. In the past two years, we have seen widespread adoption and integration of blockchain technology in varied industries such as healthcare, supply chain management, arbitration, real estate and even in some governmental sectors.