Blockchain Revolution and Its Potential Benefits behind Crypto

by Stella Lincoln I am Stella Lincoln, currently involved in fulfill

The Blockchain Revolution started with the initial works of Satoshi Nakamoto in 2008, which was intended to serve the public transaction ledger of the cryptocurrency Bitcoin. Today the blockchain technology is being observed as a robust ledger and record-keeping mechanism for various industries.

From smart contracts to financial services and from healthcare to supply chain, blockchain is emerging with progressively growing use cases. Plus, nowadays, we have blockchains that serve both the public and private sector along with sidechains.

According to a recent study by Dot Com Info Way, the global blockchain market is expected to be worth $20 billion in the year 2024. Furthermore, around 69% of banks are experimenting with blockchain technology to make their services more seamless, secure, and transparent.

Moreover, ICO (initial coin offering) investments increased 16 times since 2020, with Ethereum growing 50 times and more than 14 countries exploring the development of official cryptocurrencies actively. Not to mention that global spending on blockchains amounted to $2.1 billion back in 2018.

In light of this information, let's take a quick look at some of the potential benefits blockchain technology has to offer to cryptocurrencies.

· Absence of Transaction Fees

Okay, I agree. It is not that you can make transactions using cryptocurrency without paying up some amount in transaction fees. However, comparatively, it is almost negligible and nonexistent. This has led to even greater popularity for cryptocurrency and its adoption by the masses.

Transaction fees are usually defined as the amount charged by a business that has to pay every time it processes a customer's electronic payment.

Therefore most of the time, transaction fees can vary depending on the service being used. For cryptocurrency, the fee is based on the currency's current rate and how much you are trying to transfer.

Common types of transaction fees include exchange fees, network fees, and wallet fees, to name a few. Some of the cryptocurrencies with the lowest transaction fees include:

· Bitcoin – a little over a dollar for a transaction

· Bitcoin Cash – 10 cents for a transaction

· EOS – a single penny for a transaction

· Litecoin – 20 cents for a transaction

· TRON – an average fee of $0.0000901 for a transaction

· Ease of Access

Even though cryptocurrencies are not backed by central controlling authority, they have become fairly common with the passage of time as more and more people are willing to invest in them.w

This has led to further developments across the globe where people can freely access their cryptocurrency and make use of them along with some of the biggest exchanges that offer international conveniences.

The European Union, along with the European Central Bank, classifies Bitcoin as a convertible decentralized virtual currency. In the United States, Bitcoins are ruled in as a type of funds. Some of the biggest exchanges include:

· Binance

· Coinbase Pro

· Huobi Global

· Kraken

· KuCoin

· Decentralization & Transparency

The very basic proponent of cryptocurrency lies in its ability to function as a digital or virtual currency that is secured by cryptography. Hence it is nearly impossible to counterfeit or double spend.

However, one of its greatest proponents lies in the fact that cryptocurrencies are dispersed networks and they are based on blockchain technology.

Hence there is a distributed ledger enforced by a disparate network of computers. This makes it incredibly transparent.

· Fraud Reduction

Since blockchain uses a shared ledger that is automatically updated every time a transaction is verified, record keeping can help protect systems from those who have malicious intent.

In the image above, an example is shown to depict just how easily fraudulent activities can be identified through verified record keeping and how a private service sector organization that offers insurance can protect itself from fraudulent activities.

· Immutability

Immutability refers here to an object whose state cannot be modified once after it is created. But why is it a good thing when it comes to blockchain? The answer is simple. It makes the technology even more robust. Malevolent users cannot take advantages or bring in faulty changes to the system, leading to loopholes that they can exploit to create further damages.

This can further make transactions in cryptocurrency secure and more valid. Even students who buy assignments online are interested in blockchain technology. It offers them the ability to work in a publicly shared network and cannot be altered or changed easily.

· Instant Payments & Transfers

Probably one of the most attractive features of using cryptocurrency nowadays is the ability to make instant payments and transfers. With numerous organizations gradually opening towards the acceptance of Bitcoins for payment, this makes a tremendous case for user experience. People don't have to wait for long to make their payments or receive and send transferred amounts.

· Security

Blockchain is at the current moment heavily considered as an additional advantage to security. Its cryptographic nature implies more encrypted layers for secure communication protocols as well as creating a haven for sharing files and important documents through its safe and secure boundaries.

Furthermore blockchain allows for a decentralized form of data storage that can be used to protect sensitive data. Today several of storage service companies are actively assessing ways through which blockchain can be used to protect data from hackers.

Conclusion

The future of blockchain technology looks bright as more banks and financial institutions have come to realize just how useful this technology can be for the future. This is why we find today many banking organizations and conventional financial institutions working towards accomplishing interoperability.

This will allow both the access and implantation of blockchain technology without any restrictions, and organizations can work with other establishments with a greater sense of understanding and security. In fact, many critics have already predicted that blockchain technology has an immense outlook to become the future of all modern data transfer technology. That's it for now. Cheers and all the best for your future endeavors!

Author Bio

Stella Lincoln currently works as the Assistant Editor at Assignment Assistance and Master Thesis. This is where higher education students can acquire professional essay writers who are experts specializing in their own field of study. She likes to go out for long walks on the beach with her pet terrier during her free time.