The Era of Blockchain

The Era of Blockchain

The era of Blockchain started in 2008 when Bitcoin was introduced by an unknown person named Satoshi Nakamoto. It is believed that Satoshi Nakamoto is a group of entrepreneurs since the idea is clearly bigger than one person job. Satoshi Nakamoto famous Paper was published through a metzdowd.com cryptography mailing list on October 31, 2008, in which he introduces a¬† peer-to-peer electronic cash system that allows direct online payments from one party to another without going through a financial institution like banks. The cash system was based on the proof-of-work system to reach consensus and to address the double spending problem. The cash system is free from all kind of cyber attacks as it’s decentralized and distributed across various nodes worldwide.

Today more than 1000 cryptocurrencies are present but the underlying technology of every cryptocurrency is blockchain. The blockchain is considered to be the biggest revolution since the industrial revolution, it’s transforming the global financial system. Cryptocurrency market cap crossed 600 billion USD on 18 Dec, 2018.

Here is how blockchain is transforming the world.

Business for Everyone

The first generation Blockchains were limited to carry out transactions only. Vitalik Buterin created Ethereum blockchain in 2015 that allow everyone to develop his own Distributed application (DAPP) over it. This further led to the idea of Initial Coin Offerings (ICO’s) where anyone can create and launch his application and gather funds from investors for future roadmaps. ICO’s generated over 6 billion USD in year 2017.

Financial Services for Everyone

According to world bank, 40% of world adult population and approx 2 billion people of the world are outside the banking system today due to various reasons, limiting many to state of poverty and discouragement.

The blockchain and cryptocurrency residing over it let everyone to access financial services. Anyone having internet access is eligible to use cryptocurrency and can send or receive funds from anywhere.

Inflation free Currency

Almost all fiat currencies have gone down in their values over time. It’s due to fact that as more notes are printed price of currency goes down. Cryptocurrencies are free from inflation, as there are finite number of coins for every cryptocurrency.

Tokenization of Assets

Tokenization of real world assets is the new way of doing business over blockchain. Tokens are sort of bridge between blockchain and real world assets as they put real world assets over the blockchain.

A digital token may represent Gold, Real Estate, Shares of a company or any other asset that can be traded. The aim of tokenization is to achieve security, speed and ease of transfer of Altcoin or any other cryptocurrency, combined with real physical assets.

Altcoin is just a cryptocurrency it has no physical backing of any physical asset. There are many asset backed tokens available that have backing of real assets like Crowdbridge Global and Zabercoin.

by Sumiko Shibata

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