To many lay persons and crypto newbies, cryptocurrencies are these exciting new digital assets that can make you a couple of extra bucks overnight. The excitement cryptocurrencies have brought to the world of finance has given them the spotlight so much that, many investors don’t get the chance to know the whole journey. Cryptos are what they are today because of their underpinning unique technology, the Blockchain.
Back when Bitcoin was the main and only blockchain, there wasn’t quite a bit of difference between the terms and were used interchangeably. However, with time, the technology developed and led to the emergence of a variety of blockchains, widening it initial use from the monetary angle to a whole lot of fresh and great ideas.
Cryptocurrencies and the blockchain technology are two different things now and many firms and tech geeks have subjected the technology to experiment with ideas because of its decentralized feature.
The blockchain is now the system which brings cryptocurrencies to play. The technology now basically serves as the distributed ledger that forms the crypto network and this network makes it possible for transactions to be done as well as the transfer of data, information, and value.
The newly found uses of the blockchain technology have now compelled many skeptics to wonder why the technology is still being associated with Bitcoin and other cryptocurrencies. Many believe that Blockchain could be of more useful purposes than just securing cryptocurrencies, which to them, are still a bubble that will soon burst.
However, whatever way cryptocurrencies turns out, whether they are a gigantic bubble or destined for greatness, its underlying blockchain technology is obviously of great value.
Blockchain makes it possible for the exchange of anything of digital value across a completely decentralized network, and at the same time providing anonymity for each participant.
The worry of Interference from any third party is also dealt with, making exchanges and transactions as safe and secure as they could be. Its strong components, including decentralization, consensus, cryptographic hashes, and smart contracts amongst others are what is being demonstrated by the biggest digital coins in the market.
Blockchain also empowers end to end data encryption without any transaction verification from a third party or source, topping it up with the maximum security it could ever wish for.
The hard truth is that experts do not know whether Cryptos may or may not be around for a long time but its underlying technology will still be and has already proven itself useful in other sectors apart from cryptocurrencies.
The blockchain technology could really be the next-generation platform and could be of immense importance to logistics, healthcare, government, and many others. Companies and firms can now move past the fear of operating in a no-trust environment to that of absolute trust.
Many experts aren’t rooting for cryptos and blockchains to go their separate ways, however, the many importance attached to the blockchain technology shouldn’t be overlooked due to the love for cryptos.
