Tagged by several technological experts as the greatest invention since the internet, cryptocurrencies and their underlying technologies offer a lot of potential applications that can help governments, companies, and every individual on the planet. A few decades from now, cryptocurrencies and the blockchain technology are expected to change almost everything that we knew about the world today, in a positive and revolutionary way that we can ever imagine.
By textbook definition, cryptocurrency is a form of digital currency wherein new virtual coins are generated and transactions are verified by computers through a series of processes. There are no central banks or institutions that have control over the network as the transactions are distributed and handled by millions of computers all over the world. The blockchain is basically a public ledger where every transaction, past and present, are recorded in the computers that participate in the mining or staking process.
Learn more about the top three amazing ways that cryptocurrencies can help make a better world and be part of this technological revolution at its early stages.
- It has the potential to change the way we think of finances.
From getting freedom from the annual inflation of fiat currencies to being able to control our own finances without being dependent on banking institutions and governments, cryptocurrencies hold the greatest potential in changing the way we know about money. Because of the limited supply of most cryptocurrencies, the demand for them continues to grow over time and, consequently, their value increases. It is now also possible for people to transfer funds overseas without intermediaries and with fast, cheap, and secure transactions.
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- It can help reduce the risk of frauds.
The blockchain technology of cryptocurrencies also has the ability to support large-scale projects wherein security and transparency are of utmost concerns. With this technology, the chance of your coins getting hacked is almost zero. It is, however, still your responsibility to keep your private keys to your wallets safe. Because of the huge network where the same information will be stored, blockchain and smart contracts can also be used to keep confidential information safe and secure, such as in national elections and other organizational operations.
- It can help support new projects and scientific advancements.
Crowdfunding is also one of the most promising aspects of cryptocurrencies. With the generation of new tokens that are designed for a particular project, startup businesses and research institutes can set up an initial coin offering (ICO) to boost crowdfunding. These tokens will gain value over time, similar to how company shares work, and they can also be traded for cryptocurrencies. With this in mind, the competition for the best business ideas, and astounding scientific and technological advancements are expected to gain traction with the rise of cryptocurrencies.