Years from now, who would think about us using 4G or 5G that we will need to rely on in order to perform money transfers and transactions in our daily lives? Starting from paying for our commute to work to ordering clothes online. The Blockchain is one such technology, that will soon transform the way industries work. Before we look at the reasons cryptocurrencies are the future, let’s first take a look at what are cryptocurrencies and what is the Blockchain technology.
What is Blockchain?
The blockchain is a technological creation, that forms “chains of blocks”, under the DLT (distributed ledger technology). Each of the blocks contains data from various transactions, which are all secured and verified. They serve as the base of the technology in which cryptocurrencies act as assets. Potential applications include transferring funds, settling trades, voting, and other things.
What are Cryptocurrencies?
Cryptocurrencies are resources that work in the Blockchain technology, known as the medium of exchange for the digitalized era. One of the most popular currency is Bitcoin. All of the transactions are decentralized, and there is no involvement of banks or governments. It is an advanced technology, which is expected to be accepted by people all around the world.
Here are the reasons why cryptocurrencies are the future:
1. It prevents scams and hacks – one of the best advantages of these currencies is that it will prevent payment scams. When needed, the data will be acceptable to all users, which leads to transparency. Blockchain has a shared ledger which no one can tamper with. Information will be shared in real time, and the ledger will be updated when all the involving parties agree on it. This can reduce the chances of fraud, as well as reduce the time and costs needed for specific transactions.
2. More employment opportunities – the job market in the crypto world is expected to grow. Today, there are several places where people can get training in this technology. However, as the demand becomes higher, the supply also increases. Some of the jobs that might be available are cryptocurrency traders, full-stack bitcoin developers, blockchain solution architects, and so on.
3. Blockchain in financial institutions – now that some financial institutions are aware of the disruptiveness of Blockchain, it is expected that it will reach a critical mass by the year 2020. This technology allow to speed up the whole process by implementing cross-border payments, it can also help with commercial transactions and agreements by using “smart contracts”.
4. It is easy to use and it is secure – it is already easy to use this technology, and it is expected o be even easier. For example, when property transfers are secured by blockchain technology, we will no longer need to rely on a third party to verify them.
5. Transactions are fast and private – bitcoin can do up to seven transactions each second, thanks to its Lightning network. This means that the application will be able to perform millions of transaction per second. It will most certainly help with the adoption of Bitcoin and other cryptocurrencies.
6. Investment is easier – by tracing the bitcoin exchange rates. There are various companies that offer bitcoin exchange rates. Companies like Areatak Global offer people the chance to see updated lists in real time, and it is also free of charge. So, if you are interested in what the exchange rates are, make sure to check the lists.
One of the most important features of cryptocurrencies is that YOU own it. There is no other electronic cash system today in which your account will be entirely yours — for example, PayPal. If the company decides that your account is being misused (for any reason), they have the power to freeze your account. With cryptocurrencies, only you will own the key to your account and only you will be able to access your funds. No one will be able to take your money from you, and that is one of the most beautiful things about cryptocurrencies.