The popular search term “crypto-anarchy” is often linked to topics revolving around the topic of cryptocurrencies and their relationship with the Internet. However, when asked about the subject of how blockchains could impact the future of businesses or governments, few people can help but think about the Internet and its ability to be used as a protocol on which all currencies can be traded. It’s this notion that underpins Cryptocurrency and Blockchain technology. Through this article, we’ll examine what Cryptocurrency is, how it works, why you should care, and how it may one day change the way we do business.
Basically, a Cryptocurrency is any kind of digital currency that can be traded and stored over the Internet, instead of through a traditional online account or through a financial institution. A typical Cryptocurrency is e-gold, digital stocks, money, gift cards, e-mail addresses, or virtual “toys”. There are hundreds of other types of tokens currently floating around out there. However, when we say “Cryptocurrency”, we are actually referring to any kind of digital currency that can be used as an efficient replacement for traditional currencies in terms of cost, efficiency, security, transfer, stability, reliability, efficiency, scalability, and speed.
The core concept of Cryptocurrency is fairly simple. Basically, a group of computer networks work together in order to facilitate instant, secure, global transactions between buyers and sellers. They are built on blockchains – essentially networks of computers with pre-existing code that ensures everything goes along smoothly and reliably. The major benefit to using a Cryptocurrency instead of a more traditional Internet based payment method is the fact that it eliminates the need for a third party financial institution. This means no risks, no delays, no headaches… and definitely no more hidden fees.
For anyone who’s not familiar with the term, it basically sums up to “virtual currency”, except it doesn’t use real money. So why would you use this type of Internet-based alternative? A good case could be if you have a business that utilizes a certain amount of time to carry out a variety of operations. If you’ve got a project where you need to have products shipped out to various retail locations over a period of time, then a Cryptocurrency based system could be exactly what you need.
In addition to this, there is also a great deal of potential for the growth of these systems among small, medium, and large businesses alike. A Cryptocurrency system allows companies and individuals to cut out the middleman, which greatly simplifies the entire process and drastically cuts down on cost. This results in an increase in efficiency, productivity, and overall value for all involved. Another important factor is the use of distributed ledger technology. This is the process in which all monetary information is processed within the same database, thus eliminating errors and out of date records within the company itself.
It’s pretty safe to say the popularity of Cryptocurrency and the use of distributed ledger technology is going to see a lot of growth in the very near future. The more widespread this occurs, the more people will recognize the inherent value of these systems. This recognition will lead to increased interest in learning more about Cryptocurrency. As this occurs, the range of opportunities will increase.