Cryptocurrencies and blockchain – beginning of virtual currencies

18 January 2018 / By TE Author
currency

From the end of 2017 to the beginning of 2018, cryptocurrency and blockchains remained the most-hyped buzz. Chances are that it’ll continue to raise people’s interest throughout this year, or decade, too.

Does this virtual currency ecosystem interests you too?

If yes, get complete insights by referring to the next few sections:

What is blockchain?

Blockchain is the base technology, which is being used in the circulation of all virtual currencies. It is a shared global architecture, which can map the ownership and allow transactions in a flawless way. Apart from this, it is also the basis of many important futuristic technological trends, such as IoT (Internet of Things), e-governance, etc. due to its record-keeping abilities.

Cryptocurrencies and blockchain - the beginning of virtual currencies

Let’s get a bit technical now:

Blockchain is a distributed system, formed from digital ledgers (or information blocks) which cannot be corrupted or copied but distributed throughout the internet. The information in this system is continually updated in a database, which is not stored in a single location but has its fractions stored in multiple locations.

What makes blockchain reliable and non-corruptible is the fact that every transaction is verified and is always public to maintain transparency. It means that Blockchains cannot be controlled by a single person, organization or entity. The foundation of blockchain has an inbuilt mechanism for secure and well-tracked transactions, which ensures that no human error can cause financial losses to you as sometimes happen in the case of physical currencies.

Cryptocurrencies:

In the simplest terms, ‘Cryptocurrency’ is a form of virtual currency, created through cryptographic implementations. This currency is not administered by any of the bank or government, which makes it a revolutionary and independent medium of finance distribution. It allows you to transact digital money while staying anonymous.

Cryptocurrencies and blockchain - the beginning of virtual currencies

Source: BlockGeeks

Virtual currencies are very much similar to paper currencies, apart from the point that you can’t touch it or it cannot be robbed without your knowledge. These currencies are already being accepted by many of the e-commerce and other marketplaces. As it is not vulnerable to network intruders, it ensures the maximum security of transactions.

Types of cryptocurrencies:

Cryptocurrencies and blockchain - the beginning of virtual currencies

Just as the real currencies, cryptocurrencies or virtual currencies are of the lifeblood of blockchain’s monetary system. Bitcoin, launched in 2009, was the first of these digital ledgers. After that, there were many altcoins (alternatives to Bitcoins) that were launched. Ethereum, Litecoin, Monero, Ripple, Vericoin, Dash and Bitcoin Cash are some of the most popular currencies.

Mining:

Cryptocurrency miners are rewarded with the digital coins for the audits and transaction confirmation. Through mining, the transaction records are added to the digital ledgers, in the form of ‘block’. The whole collection of ledgers is called blockchain and is used for confirming the transactions happening.

Future of this technology

Initiated a decade ago, the advancements in the cryptocurrency-based digital infrastructure is still as its beginning phase. Guess what the future may look like? Here are a few possibilities:

  • Traditional banks, making a transition to digitization
  • Increase in demand and use
  • Hike in the value of cryptocurrencies, as these are limited
  • More apps and coins, entering the market
  • More sellers, accepting the virtual currencies
Development trends, which will arrive with the beginning of virtual currencies:

Cryptocurrencies and blockchain - the beginning of virtual currencies

As blockchain and cryptocurrency are being accepted widely, it will surely drive a development trend in 2018 and so forth. If you are among the tech entrepreneurs, willing to start something in this niche, here are some crypto-based web and mobile app development trends to look forward to:

  • Currency creation and trend of ICOs
  • Bitcoin’s source code is open-source and hence, cloning and creating similar currencies is easy. With the help of expert developers and a good algorithm idea, you can create and circulate your own currency. This practice also requires trust-building and marketing, as you need more investors to increase the worth of your currency. You can adopt ICO practices for that. Initial coin offerings or CIOs are becoming popular after the crazy accomplishments of cryptocurrency. It’s a way of selling a newly-arriving cryptocurrency before its launch, in exchange for other crypto coins.

  • Decentralization app development or blockchain-based development
  • Decentralized applications are going to be the new trend. The inherited security and speed of operations make them more lucrative than previous database storage methods. You can get your decentralized app developed, utilizing the blockchain and other great technologies.

  • API development and integration
  • e-commerce businesses, marketplaces, and other finance-based services have started accepting bitcoins. So, the sellers and vendors are also showing their interest in getting the custom APIs developed for multiple purposes, related to it.

  • Wallet development
  • As users in the crypto environment increasing, the need for secure wallets is increasing too. There are many existing wallets, which are bottlenecked due to excessive demand. The sudden rise in demand and use of bitcoins and other cryptocurrencies has made virtual cloud-based wallets highly profitable. So you can try coming with a highly secure and reliable wallet to get speedy success.

  • Exchange platform development
  • With increasing digital currencies and fewer wallet options to support them, exchange platforms are very much like the saviors. People are rushing to exchange one digital coin to another, needing more and more exchange platforms to rely upon. In such a scenario, coming up with a good exchange platform could be a good idea.

  • Integration of cryptocurrency-based payment method
  • It is quite visible that the online payment scenario is going to change due to the rise of digital currencies. So, most of the online payment systems are going to add a new payment method very soon. For that, integration and development of crypto-based payment gateways will be required.

    Conclusion: Is it really the future?

    Saying that cryptocurrency is the future of financial systems, will be too early. But we can consider it the first step towards the digitalization of currencies. There may not be the transaction-based flaws and high security in the system, but it is still not possible to get the lost coins back to the mainstream if a user loses its hardware wallet. Similarly, there are many issues that are yet to be sorted out.

    On the other side of the coin, every technology deals with such issues on its primary stage. With increasing research, development efforts, apps and applications, the flaws reduce. The same is true with cryptocurrencies. Overall, being a frontrunner of development trends in this technology may set up high in this rising technology. So why don’t give it a try? Talk to Techechelons for more details on the same.