Today there is a major phenomenon taking over the world that is cryptocurrency and the Blockchain technology. These innovative technologies are taking over the world systems gradually.
The Blockchain has continuously proving its mettle and in the coming years will function as a stable platform for all major financial markets. The most unique thing about the blockchain is that it can be incorporated in every sector not just to make transactions but also store data and create third party free contracts.
Cryptocurrency is just the tip of the iceberg and the blockchain can be incorporated in every system and work structure giving it seamless and stable access.
The growth and acceptance of cryptocurrency is an example of how this tech works in real time situations with great durability and efficiency. But the questions still stands that as to where can the blockchain tech be applied. Some of present and the future uses are mentioned to give the readers a small understanding of how the blockchain has the capability to change the world in the near future.
What is cryptocurrency?
Crypto currency is basically a digital currency, which means that it only exists electronically and has not physicalexistence like a currency note or coin. Also a cryptocurrency does not have a regulatory authority or central body issuing the currency. To put it in a simpler manner we can say that any crytocurrency does not have an organization or government deciding when to make more currency, how to produce more of it or investigating fraud.
Being a decentralized authority we can simply say that a cryptocurrency is like peer to peer sharing network somewhat like any social network where you send information and keep track of it yourself making the transfer transparent.
Smart contract is a protocol to digitally facilitate and verify the negotiation or purpose of basic contract between two people. A Smart contract allows the verification and credibility of all transactions without the hassle of getting validation form a mediating third party. Every transaction on the blockchain is traceable and irreversible. Smart contracts were introduced by Nick Szabo. Smart contracts claim that many kinds of contracts and clauses can be made partially or fully self-executing. Aim of smart contracts is to provide security that is superior to traditional contract law. This shall also reduce other costs like transaction or registration fee associated with creating a contract. Various cryptocurrencies have implemented types of smart contracts.
These are two of the major uses of the blockchain technology that are in the market now and are making progress at substituting the traditional work structure all over the world to bring stability, balance and security not in just the economic or the financial sector but also every work structure be it storage, contracts, legal mitigations and data accumulation.