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Blockchain and the evolution of Cryptocurrencies is still a work in progress.
Every day, the number of blockchains technology, including the proliferation of ‘cryptocurrencies’, used in real-world scenarios grows.
From logistics to fine art, it is hard to find a sector that has not been touched by this transformative technology. We have reached a point where the technology has proven itself and global businesses can no longer afford to ignore it
The ‘World Economic Forum’ anticipates that 10% of global GDP will be stored on the blockchain by 2025. That means Executives out there are preparing for this seismic shift and are ready to completely back its implementation. The impact of distributed ledger technology could be as grand as the internet revolution itself.
Blockchain
Blockchain provides an ability to operate in a peer-to-peer business model, where individual members of a chain interact directly without the need for intermediaries. The blocks in a blockchain contain a cryptographic hash of the previous block and therefore is resistant to modification of data. This provides a significant level of security over the integrity of the data as the transactions recorded in the ledger cannot be altered retroactively without alteration of all subsequent blocks.
Having said that, the potential of collusion from members is still a risk that is present in transactions within the blockchain.
The application use of the blockchain technology is expanding in a different type of business and sectors ...
Cryptocurrencies
It is difficult to talk about blockchain and do not talk about cryptocurrencies as this was initially invented to serve as the public transaction ledger of the cryptocurrency Bitcoin.
Cryptocurrencies are digital currency in which encryption techniques are used to regulate the generation of units of currency. These currencies operate independently of a central bank. Since the genesis of Bitcoin (by far the most well-known cryptocurrency) other hundreds of cryptocurrencies have been created.
Recently, a matter that has been of public interest has been the volatility of its value. While on introduction in 2009 a Bitcoin’s price amounted to US$0, its price during the years 2014 to late 2016 was ranging between US$200 to US$400. Then, suddenly it rose to US$1k by the end of January 2017 and reached US$20k in December 2017 (now approx. US$6k). Why such appreciation?
This appreciation appears to be the combination of significant changes in demand, driven by the limited number of digital currencies in circulation, a peak demand from late technology/investors adopters and obviously speculation.
For more information
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