One of the greatest innovations to have appeared in recent times has been the ascent of the digital asset, The Cryptocurrency. Based on the blockchain technology, cryptocurrencies have transformed the way asset transactions take place. It, in one stroke, removed pesky third party presence, made peer to peer transactions faster and cheaper and since digital assets did not have any form, eliminated the fear of fraud. As the technology evolved, newer additions appeared. Some of the notable ones were smart contracts, DApps et al.
Also, with the passage of time, Bitcoin, the original one, spawned an entire universe of new-age cryptocurrencies. These new cryptos became the epitome of innovation, providing services ranging from automated digital wallets to platforms where developers can create new services and tokens as well.
However, the greatest innovation that cryptocurrencies really brought was to create a decentralized peer to peer environment and yet remain safe and secure. This was partly because it was based on the blockchain technology and partly because the world needed a change.
Let us quickly look at some of the key characteristics of cryptocurrencies:
Drastically reduces fees and processing times due to a lack of cross-border restrictions
Prevents governments or major institutions from blocking financial activities at the whim
Greater financial control
Individuals can have total control of their funds
Prevents fraudulent alterations from third parties
Lower transaction fees thanks to fewer third parties
Reduces or eliminates traditional barriers to capital markets
The current role of crypto goes beyond simply replacing cash. The new token-based economy is evolving into a super environment whereby influencing spheres hitherto not imagined earlier. Areas like finance, security, identification, social engagement, and ownership. Cryptocurrency, through its frontier innovation model, has transformed the way things can be done. Future models indicate that this innovation spree would be relentless.
Digital cash can be used for both eCommerce and brick-and-mortar retailers
- Store of value
A new form of scarce native currency and a means of settlement
- Programmable money
Borderless money that enables easy conversion between currencies
Crypto version of fiat which is tied to the value of resources like gold or the U.S. dollar
And because if the above uses, cryptocurrencies are slowly but surely becoming one of the rages in the financial world.
Cryptocurrencies are adding both value and utility to the digital economy, and to the global financial market as a whole.