Cryptocurrency, Blockchain, and the future of modern money,
10 years ago, when we wanted to buy something we wanted from the nearest store, we would take out our wallet, and carry out the transaction with paper currency, coins, or plastic bank cards. Life was simple, things were simple, until now. Digital payments are on the rise, from virtual wallets to cryptocurrency, the form of money as we know it could diminish in the blink of an eye, and this is a very real possibility and not just a regular claim. However, in order to actually understand the resulting effects of this transition, not many people actually talk about what really the tossed around term “Bitcoin” actually means or what really is this revolutionary technology called “Blockchain”? It’s imperative that we understand what our money will look like in the next few years, and if it really has the potential to revolutionize the financial industry and more importantly, our day to day lives themselves.
Let’s start with cryptocurrency. What is really is this fancy term that gets thrown around? In simple words, Cryptocurrency is a virtual currency, that boasts the qualities of regular virtual money (that we use to say, for example, carry out transactions on Amazon), but also uses the versatility and robustness of modern-day technology. This technology is what makes cryptocurrency special, and we call this blockchain- which consists of “blocks” that only contain transaction data, a timestamp indicating the time of the transaction, and absolutely no data regarding the parties involved in the transaction. Many of these “Blocks” eventually form a “Chain”, resulting in an endless “Blockchain” of anonymous data, all re-inforced using strong encryption. Even if a hacker gains information about a “Block”, it will be of no use.
Blockchain allows cryptocurrency to be de-centralized (no authority has control over it), which makes it free from bureaucratic and regulatory pressures that plague regular currency. Moreover, every crypto-based transaction is also highly secure because of strong encryption. So cryptocurrency is a virtual, un-controlled, secure, and transparent technology because of blockchain. But how will this help a normal person like you or me?
Blockchain and Cryptocurrency increase user autonomy. This means our transactions aren’t bound by regulatory bodies such as the government or banks, which also results in lower transaction fees (Fee paid to bank during a transaction). All transactions are also completely anonymous, ensuring security in a decreasingly privacy-driven world. Your cryptocurrency can also be accessed from any device with an internet connection, allowing you to make transactions anywhere and anytime.
But what makes cryptocurrency so revolutionary? Could it be a large part of our future? To a large extent yes, cryptocurrency and blockchain are and will be the technologies of the future. Simply taking the example of the emergence of de-centralization, every new revolutionary company be it in the form of Amazon, Uber, Air BnB, or even Swiggy, are completely dependent on multiple businesses or people in order for their business to work. Amazon needs its sellers from all over the world to deliver quality goods and services to customers. Uber needs people who are willing to be drivers in order for their business model to work. Even Swiggy doesn’t make food on its own and relies on a large database of restaurants to do it for them. All of these companies are incredibly successful because they’ve implemented some form of decentralization, which allows them to be more efficient, synchronized, and alleviate the burden that would exist if they had to source and do everything on their own.
Blockchain and cryptocurrency are quite literally taking what all these businesses have done, to something more essential: in the form of money and transactions. Despite the obvious barriers of acceptance and lack of knowledge that currently plague the progression of these technologies, as time progresses we could be fairly certain that Cryptocurrency and Blockchain could become a large part of our day to day life.
Author : Siddhant Paliwal