Decades from now, who thought, we’ll be hovering over 4G-5G networks and did we ever imagine, that we will be relying on virtualized money transfers and transactions in our daily lives, starting from paying for the commute to ordering food online.
After demonetization, even small cigarette shops have started adopting the online mode of transactions. That was a big swerve, which indicates transformation. Similarly, we’ve been hearing jargons like “Blockchain”,”Cryptocurrency” and “Bitcoins” for a year or so. It’s just capturing a crucial part of the news, but do we know what it is and how is it going to shape our future.
The Blockchain is one such technology, which will soon be able to transform the way industries work, currently.
Before going further, let’s understand what is “Blockchain” and “Cryptocurrency” briefly so that the content below doesn’t confuse you. In no way, you can understand these terms in three sentences, we shall talk about these in a separate blog altogether.
The blockchain is the technological innovation, which forms “chains of blocks”, under distributed ledger technology (DLT). Each block includes data from numerous transactions, which are secured and verified. Blockchains serve as the basis of technology in which cryptocurrencies work as an asset. Potential applications include fund transfers, settling trades, voting, and many other issues.
Cryptocurrencies are tools or resources that work on the “Blockchain technology”, known as the modified medium of exchange for the digitized era. Bitcoin is the most popular Cryptocurrency. The transactions are decentralized, where there is no involvement of any financial institution like governments and banks. It’s the payer and payee who will be responsible for their wallet and transactions. A complete peer to peer model of transactions! Blockchain is an advanced technology which is yet to be accepted by people across the world. But, once you understand the technology and its uses, you will embrace the beauty of it, without being hesitant.
The rise of cryptocurrencies over the past years represents “the legitimization of an emerging asset class alongside the traditional global economy,” according to Dr. James Canton of the Institute for Global Futures where he mentioned we could expect an exponential increase of new investment vehicles to come from cryptofinance.” - an experts opinion on the future cryptocurrencies.
Let’s figure it out ourselves why Cryptocurrency is the next magical thing the earthlings are going to embrace:
One of the most talked about advantage after Blockchain will be accepted is the prevention of payment scams. The data will be accessible by all, when needed, leading to data transparency, wherein they use the same power grid. Blockchain has a shared ledger which is resistant to tampering. With blockchain technology, information can be shared in real time, and the ledger can only be updated when all parties agree. This can reduce time, costs and opportunities to commit fraud.
Human involvement is the most common bottleneck. With the help of Blockchain technology. We’ll be able to initiate and enforce contracts without the human intervention. Financial institutions and government departments can privilege by using “smart contracts.” Blockchain will add significant value, reducing friction in the value chain.
The job market for the crypto enthusiasts is expected to grow exponentially. Nowadays, there are several institutes training people on Blockchain technology. As the demand is becoming more and more, the supply tends to increase. Some of the designations might be ‘Cryptocurrency trader’, ‘Bitcoin Full-stack Developer’, ‘Blockchain Solution Architect’ and so on.
Now that financial institutions are acknowledging the disruptiveness of Blockchain, it’s being predicted that it will reach the critical mass by 2020. Blockchain technology enables to speed up the process by facilitating cross-border payments. It can help execute commercial transactions and agreements with the help of “smart contracts”.Blockchain will even help improve online identity management.
Apart from the Banking sector, there are other industries which are incorporating Blockchain, which ultimately drives the ubiquity value. Like, Tron as a cryptocurrency is mainly used in entertainment industries. Even Retailers can access a customer’s information such as managing loyalty rewards. Tokens can dramatically simplify the tracking and managing of loyalty points, rewards cards, and paper or digital coupons.
Blockchain offers a universal infrastructure facility, connected to form a new market infrastructure, integrated into the existing process and systems. Right now, aging infrastructure is the reality, which results in inefficient and costly solutions, thereby diluting the benefit of big-ticket initiatives such as a single European settlement platform. Now, the market infrastructure providers have the opportunity to drive down costs, as well as to future-proof their offering and meet demands for return on investment by the use of Blockchain technology.
Cryptos will get a lot easier to use - leading to mass adoption as it will rebrand the new feature with the old technologies. Who knows, it might solve problems like the inheritance of the property for example. When property transfers are secured by the blockchain, we no longer need to rely on a trusted party to verify them. However, an associated between a particular property and a genesis transaction output becomes the weakest link.
Bitcoins can do seven transactions per second at its peak. Thanks to the Lightning network. The applications can scale this to millions of transactions per second. It will help to increase the adoption of Bitcoin and cryptos. Lightning could be the future of Bitcoin.
Once Governments and regulatory bodies start embracing cryptocurrencies, it’s just a matter of time, when it hits the plateau of productivity(Gartner’s 5 step Hype cycle). The “plateau of productivity” is the last stage of the Gartner's 5 step hype cycle, which according to Gartner, Blockchain has at least achieved somewhere between 5% and 20% adoption. It’s undeniable that: The technology has reached a new level of acceptance or adoption based, on increased interest from governments, banks, and media. After taking a look at the current level of understanding of the blockchain’s potential for government and industry, we are certain that it will reach the plateau of productivity pretty soon.
Cryptocurrency ICOs have become the leading crowdfunding method used mostly by startups to raise capital for their projects. Around the world, the conversation seems to be about cryptocurrencies, smart contracts, and Blockchain-based applications.
Ethereum, for example, is a cryptocurrency project that has raised $18 million in ICO and reached an approximate $1 billion market cap in 2016. If you are a startup founder, you can set a predetermined goal for ICO-funded projects.
As more and more masses understand the technology behind how cryptocurrencies work and how can it prove beneficial to them, it’s slowly and gradually infused into the ecosystem. The fate of cryptocurrencies and blockchain will shape our lives!
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