When Satoshi Nakomoto devised the whitepaper for Bitcoin, the first cryptocurrency, back in 2008, the technology was in its infancy. It has since expanded enormously into the modern investment world.
Digital assets are the newest asset class, and for many, they are the most exciting asset class because of the immense potential of cryptocurrency and blockchain technology. For instance, Bitcoin is a store of value and is seen as the digital equivalent of gold. Ethereum, the second biggest cryptocurrency by market cap, is seen as the digital oil that allows the infrastructure to run so effectively.
The cryptocurrency technology has transformed countless industries, yet we have only seen the tip of the iceberg regarding cryptocurrency’s vast capabilities. For instance, you can use Bitcoin as a legal tender in some countries, such as El Salvador. Yet, the possibilities with the technology are vast.
In this article, we will break down the future of crypto in the digital ecosystem.
What Industries Could Be Affected?
Theoretically, this could completely transform industries such as conveyancing, which involves paperwork and authorization. It can take months for this process to become verified, and it can cause many headaches for all parties involved. By utilizing blockchain technology, there is an instant and clear transaction record.
Besides, the innovative feature of cryptocurrencies lies in their ability to process transactions quickly. Although the blockchain technology is still new, the gambling world adopted it as a means of processing transactions. If you’d like to experience the novelty of these transactions first-hand, you can visit a crypto-supported online casino and check all games here.
Another way crypto revolutionizes the digital space is through record storage. You can use the technology to store your medical records, for examples, as you would be able to verify your identity with a blockchain that is unique to you and designed for this sole purpose.
Due to the technology’s effectiveness, your information would be extremely secure, removing the need for extensive or unnecessary storage across multiple systems. A real use case has developed in India where the police are using blockchain technology to store complaints in a bid to remove the possibility of corruption.
The payment system that many banks use to send international payments can be a long and arduous process. Depending on the country you’re sending the money to, it can take a number of days actually to go to the intended recipient.
Banks that sign up to use blockchain technology to send money will be able to verify all compliance and security by using the blockchain, as it will be information verified by cryptographic signatures.
This has the potential to change a process that takes 48 hours to a process that takes a matter of seconds. If this were implemented across the financial sector, it would have incredible repercussions for the banks and their customers.
After All, What Is the Digital Ecosystem?
The digital ecosystem is a broad term, and it can encompass a huge number of variables. The best and most simple way to remember it is that it is a community that operates solely in the digital space, such as the internet, and creates value and benefits for those who interact with it.
Blockchain technology is a highly innovative and secure method of registering transactions. It can be viewed by anybody and cannot be altered without the network’s consensus. Bitcoin’s peer-to-peer transfer system uses blockchain technology to ratify transactions on the network.
A centralized bank acts as a middleman that will handle your transaction and then send your money to another person or company. Bitcoin negates the need for a bank to be used. You can send directly from wallet to wallet without any other entity needing to be involved. The blockchain stores this information and is virtually impenetrable, so your transaction is registered properly.
Due to these huge advances, transactions that would usually require high levels of clearance at a bank and security checks can be done instantly as the technology underlies it and creates a record of the activity.
We have only touched on a handful of topics that could be revolutionized by blockchain technology and the potential of crypto within the digital ecosystem. Whilst mass adoption has yet to occur, digital assets are becoming more discussed in the mainstream media. In addition to this, more people are becoming aware of the technology and the enormous potential that it has.
Much like anything in life, if there is a process or a technological advancement that can make a process quicker and more convenient, that will be the most popular choice. The convenience of blockchain technology compared to some of the dated computing many companies use is a no-brainer.
Companies operating within the digital ecosystem could see widescale changes within this space over the next decade. Despite the clear evidence that this technology could improve entire industries, the sentiment from financial institutions and central governments regarding cryptocurrency has been quite negative as a whole.
There has been talk in the US about regulating the space, which will be necessary at some stage. But, some people fear it could drive investment away from cryptocurrencies and blockchain technology. However, irrespective of any legislation change, cryptocurrencies and blockchain technology are here to stay.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.