What exactly is Cryptocurrency?
Cryptocurrency is a form of digital currency that relies on a form of technology called blockchain. This makes it almost impossible to counterfeit or double spend. Transactions are verified and records are maintained on a public ledger by a decentralized system, that is distributed across many computers, rather than being managed by a centralized authority. It could be used to make payments as well as a store of wealth. Being a decentralized form of money, cryptocurrencies are immune to government interference and manipulation. Currently, there are over a thousand different cryptocurrencies.
What is Blockchain technology?
Blockchain is the technology that enabled the creation and is the backbone of all cryptocurrencies. It allows data to be recorded and distributed but not edited. This forms the foundation for immutable ledgers that cannot be altered or destroyed. The distributed ledger then allows to track and handle transactions across multiple computers, eliminating a single point of control, rather, collectively retaining control. So far, blockchain has demonstrated its ability to ensure integrity of transactions, which is important for any digital platform to acquire widespread use.
Blockchain Technology isn’t limited to cryptocurrencies and has been adopted by different industries for various other purposes where integrity and immutability of data are crucial.
The Current Landscape
Many established companies are showing interest in Cryptocurrencies. Vast Bank in the US has allowed customers to conduct cryptocurrency transactions directly from their bank account. A major financial organization, JP Morgan has recently started adopting Cryptocurrency, launching their own coin as well as accepting trades in cryptocurrency.
On the other side, some well-known personalities in finance have recently rejected cryptocurrency citing its use for nefarious purposes. Warren Buffett, the CEO of Berkshire Hathaway has famously called out on cryptocurrencies, claiming it to be a “gambling device.”
Virtual and online payments have been expanding ever since the turn of the century. Transacting and engaging in business online has become mainstream and the inclusion of cryptocurrency payments at Visa, Mastercard, and PayPal has made it more accessible. In a virtual environment, crypto payments will become even more popular, and it stands to reason that crypto-enabled payments will move to the forefront in the future.
Rtr. Mohammed Yasir