Blockchains, smart contracts, and stablecoins as a global payment system : The rise of web 3.0

Abstract: Blockchains, smart contracts and cryptocurrencies are reaching further global adoption each day and are becoming more prominent to be the foundation for a new technological era and to be used in transactions globally. The technology has strong coherent properties, including a high level of security, decentralization, and its use of smart contracts to obviate intermediaries. These technologies offer the possibility to do any transaction without a centralized bank controlling, denying, or reversing the transaction. This report aims to shed light on blockchain technologies possible impact on society and if the current centralized-based system can be replaced or if it is deemed as necessary. What the potential outcome would be if these centralized authorities sees a decrease in power and how blockchains, smart contracts and stablecoins can be used as an everyday payment and transaction system, excluding all third parties. To do this, a literature review, a quantitative survey, and qualitative interviews were conducted. The literature review, to lay the ground for the questions in the survey, interviews, and additionally, to determine what blockchain and what kind of stablecoin is most suited for global adoption. The result from the qualitative interview were to acquire knowledge from more experienced individuals working or owning a company that is based on top of blockchains. Lastly, considering blockchain technology and web 3.0 is still under development and yet to become globally accepted, the questionnaire survey was conducted to retrieve the general consensus from individuals inside crypto communities. The report overall, came out to be successful, indicating that blockchain technologies has a bright future and that the decentralization it adds to society can benefit the individual in multiple of different ways, specifically in the financial sector. However, although the conclusion that blockchain technologies can be used as a global payment system were deemed successful, objective, and subjective opinions were discussed and reported relevant, whereas one individual might view the exclusion of intermediaries as necessary and beneficial, while the other – as something negative. Scalability issues in blockchains and smart contracts controversy, such as its complexity and its immutability aspect are also analyzed and discussed as a potential hindrance for further global adoption.