Digitalisation Of Currency In The Modern World

“So my view’s quite clear. I believe cryptocurrencies, Bitcoin is the first example, I believe they’re going to change the world.” - Richard Brown

There exists a strong need to understand the functioning of cryptocurrency and block-chain technology and other such terms that have gained immense popularity in the present day.

Cryptocurrency is a digital form of currency which provides a decentralised and anonymous medium for the safe transfer of money. It presents a parallel mode of transaction which requires no central organisation. Two cryptocurrencies are commonly used today; Bitcoin and Ethereum. Bitcoin was started first in 2009 and soon after became hugely successful, and its total valuation currently runs into billions. Cryptocurrency is increasingly used by multiple hosts, and many different cryptocurrencies have surfaced since the invention of Bitcoin. They are exchanged as per values digitally, similar to the workings of a stock market. ‘Cryptomining’, which earlier involved few individuals solving complex mathematical calculations, has now turned into a lucrative business for increasing profits with several individuals and enterprises investing in it.

Cryptocurrency makes use of the dynamic tool of Blockchain technology. It allows digital information to be distributed but not copied.Since this database and information exists on global network, it cannot be hacked into, is regularly updated and gives a secure alternative to data storage. For instance, Ethereum, a cryptocurrency, making use of blockchain provides a digital platform to sign mutual smart contracts without chances of fraudulence or interference by another party. Bitcoin transaction block chain, which is a construct that is formed by bitcoin miners and is used as a ledger for recording and validating Bitcoins on a global scale.

Although blockchain technology was initially used in Bitcoin, it is now discovered to have several other potential uses. It can transform the manner in which transactions take place in the future, bringing a paradigm shift in the workings of E- commerce. It is can also be used in securing instant insurance claims, or by advertisers in their regular financial transactions by simply choosing the secure process of smart contracts or bonds.

ICO (International Coin Trading) offers another such digital replacement to the existing stock market. It is a superior platform where companies can create their own digital currencies and sell them when in need of raising funds. This provides them autonomy and an easier processing than the stock-exchange system which is dictated by extensive and binding regulations. Such innovative approaches that blockchain technology uses, can benefit each and every growth sector in the world.

The ingenious invention of blockchain technology and cryptocurrency provide many avenues for economic growth, and if it correctly follows ethical standards, it can help in democratizing the global economy, develop a fair and more open system that can improve innumerable businesses and transform lives; for its scope is truly limitless.

However, one should always deal new inventions with a sense of responsibility, just like Warren Buffet, one of the richest men in the world has warned about this new fad of cryptocurrency in the world.

Thank you for reading!