The topic of blockchain technology’s impact on financial markets is gaining prominence in IELTS Writing Task 2. Based on recent trends and the growing significance of this technology, we can expect to see more questions related to this subject in future IELTS exams. Let’s examine a relevant question that has appeared in past tests and provide sample answers for different band scores.
Some people believe that blockchain technology will revolutionize the financial industry, while others think its impact will be limited. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the view that blockchain will revolutionize the financial industry
- Discuss the opposing view that blockchain’s impact will be limited
- Provide their own opinion on the matter
It’s crucial to address all parts of the question and provide a balanced discussion before stating your personal stance.
Sample Essay for Band 8-9
Blockchain technology has been hailed as a game-changer in various industries, with the financial sector at the forefront of this digital revolution. While some experts believe that blockchain will fundamentally transform financial services, others argue that its impact may be overstated. This essay will examine both perspectives before offering my own viewpoint.
Proponents of blockchain argue that it has the potential to revolutionize the financial industry in several ways. Firstly, the technology’s decentralized nature could significantly reduce transaction costs and processing times, making financial services more accessible and efficient. For instance, cross-border payments that traditionally take days and incur high fees could be executed almost instantly and at a fraction of the cost. Moreover, blockchain’s immutable ledger system could enhance transparency and reduce fraud, thereby increasing trust in financial institutions and markets.
On the other hand, skeptics contend that blockchain’s impact on finance will be limited due to several factors. They argue that the technology is still in its infancy and faces significant scalability issues, making it unsuitable for handling the vast number of transactions processed by global financial systems daily. Additionally, regulatory challenges and the conservative nature of established financial institutions may slow down blockchain adoption. Critics also point out that many of the promised benefits of blockchain can be achieved through existing technologies, questioning the need for widespread implementation.
In my opinion, while blockchain technology may not completely overhaul the financial industry overnight, its long-term impact will be substantial. The potential for increased efficiency, reduced costs, and enhanced security offered by blockchain is too significant to ignore. As the technology matures and regulatory frameworks evolve, we are likely to see gradual but meaningful integration of blockchain solutions in various aspects of finance, from payments and remittances to asset management and securities trading.
In conclusion, blockchain technology has the potential to bring about significant changes in the financial industry, although the extent and pace of this transformation may be moderated by existing challenges. As the technology continues to develop, its impact on finance is likely to grow, ultimately leading to a more efficient, transparent, and accessible financial system.
(Word count: 345)
Sample Essay for Band 6-7
Blockchain technology is a new innovation that many people think will change how money and banking work. Some believe it will make big changes, while others think it won’t do much. I will talk about both ideas and give my thoughts.
People who support blockchain say it can make big improvements in finance. They think it can make sending money faster and cheaper, especially when sending money to other countries. Also, blockchain can make it harder for people to cheat or steal money because all transactions are recorded and can’t be changed easily. This could make banks and financial companies more trustworthy.
However, some people don’t think blockchain will change much. They say that the technology is still new and has problems. For example, it might not be able to handle all the money transfers that happen every day around the world. Also, there are rules and laws about money that might make it hard to use blockchain. Some people also think that we can make finance better without using blockchain.
In my opinion, blockchain will probably make some important changes in finance, but it will take time. I think it won’t change everything right away, but over time, it will help make sending money easier and safer. Banks and other financial companies will start using blockchain bit by bit as they see how it can help them.
To sum up, blockchain technology could bring good changes to the financial world, but it won’t happen quickly. There are still some problems to solve, but I believe that in the future, blockchain will help make financial services better for everyone.
(Word count: 276)
Sample Essay for Band 5-6
Blockchain is a new technology that some people think will change how we use money and banks. Other people don’t think it will make big changes. I will talk about both ideas.
Some people say blockchain will make big changes in finance. They think it will make sending money faster and cheaper. For example, if you want to send money to another country, it can be very slow and expensive now. With blockchain, it might be much faster and cost less. Also, blockchain might make it harder for people to steal money or cheat, because all the information about money transfers is saved in a way that can’t be changed easily.
But other people don’t think blockchain will change much. They say the technology is still new and has problems. For example, it might not be able to handle all the money transfers that happen every day. Also, there are many rules about money and banks, and these rules might make it hard to use blockchain. Some people also think we can make finance better without using blockchain.
I think blockchain will probably make some changes in finance, but not right away. It will take time for banks and other companies to start using blockchain. But I think it will help make some things better, like making it easier and safer to send money.
In conclusion, blockchain might change some things about finance, but it won’t happen quickly. There are still some problems to solve, but I think in the future, blockchain will help make some parts of finance better.
(Word count: 255)
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the response
- Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
- Uses a wide range of structures with full flexibility and accuracy
- Develops ideas coherently and logically, with appropriate use of cohesive devices
- Demonstrates a high level of grammatical accuracy
Band 6-7 Essay:
- Addresses all parts of the task, although some parts may be more fully covered than others
- Presents a relevant position, although conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task, with some inaccuracies in word choice and collocation
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and there is clear overall progression
- Shows good control of grammar and punctuation but may make a few errors
Band 5-6 Essay:
- Addresses the task only partially; the format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses limited range of vocabulary, but this is minimally adequate for the task
- May make noticeable errors in spelling and/or word formation that may cause some difficulty for the reader
- Uses only a limited range of structures
- Presents information with some organization but there may be a lack of overall progression
Key Vocabulary to Remember
- Blockchain (noun) /ˈblɒktʃeɪn/ – a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system
- Revolutionize (verb) /ˌrevəˈluːʃənaɪz/ – to completely change the way people do something or think about something
- Decentralized (adjective) /diːˈsentrəlaɪzd/ – controlled by several local offices or authorities rather than one single one
- Immutable (adjective) /ɪˈmjuːtəbl/ – unchanging over time or unable to be changed
- Scalability (noun) /ˌskeɪləˈbɪləti/ – the ability of a system, network, or process to handle a growing amount of work in a capable manner
- Remittance (noun) /rɪˈmɪtns/ – a sum of money sent in payment or as a gift
- Transparency (noun) /trænsˈpærənsi/ – the quality of being done in an open way without secrets
- Fraud (noun) /frɔːd/ – the crime of getting money by deceiving people
- Adoption (noun) /əˈdɒpʃn/ – the act of starting to use something new or different
- Integration (noun) /ˌɪntɪˈɡreɪʃn/ – the act of combining two or more things to make something more effective
Conclusion
The topic of blockchain’s impact on financial markets is likely to remain relevant in IELTS Writing Task 2. As you practice writing essays on this subject, remember to:
- Address all parts of the question
- Provide a balanced discussion of different viewpoints
- Use appropriate vocabulary and complex sentence structures
- Organize your ideas coherently
- Support your arguments with relevant examples
To further improve your skills, try writing your own essay on the following related topics:
- The potential of blockchain technology in reducing financial fraud
- The role of government regulations in blockchain adoption for financial services
- The impact of blockchain on traditional banking jobs
Feel free to share your practice essays in the comments section below. This active practice will help you refine your writing skills and prepare effectively for the IELTS Writing Task 2.