Proposals and documented regulations that favor activities in the cryptocurrency industry are often viewed as a new dawn to the way people will interact with money. Cryptocurrencies have been poised to create a financial system that will be efficient just as the internet did for our shopping and access to information. So, what’s behind this futuristic view that enthusiasts say has already set in?
The Blockchain Enthusiasm
As blockchain and cryptocurrency gain traction, more companies pursuing blockchain-related ventures have been developed. This can be seen with the numerous Initial Coin Offerings (ICOs). The technology’s publicity has grown despite most people not understanding the concept of the technology. Most have viewed cryptocurrencies as investments equivalent to stocks but highly volatile. But there’s more to it! Blockchain certification online is the best way to learn about the technology.
Solving Problems in the Financial System
The key component of blockchain technology is its decentralization and distributed control. The distributed control is matched with cryptography to ensure that no node in the network can edit any records of previous transactions. Decentralization gives control to several network members eliminating the concentration of control by single entities. The technology further eliminates double spending thus ensuring the credibility of the financial system.
First, cryptocurrencies will establish cheaper ways to transact as most of the costs incurred in processing transactions by central organizations are significantly high. Secondly, cryptocurrencies support faster cross-border transfers as blockchain technology’s decentralization allows faster processing from the numerous members. For instance, Ripple’s scalable network supports up to 1500 transactions per second with only 4 seconds required for cross-border transfer. Besides, cryptocurrencies, as digital currencies, are more convenient to handle with this age of the internet. The technology provides better security and data privacy compared to centralized third parties today.
Traditional financial systems have barely transformed, despite the advancing technology driven by the internet. Although cashless systems have grown, privacy, speed, and convenience have often been compromised, with some transactions taking up to 5 working days to process. Blockchain certification online is setting the ground for a new financial system that will change the way we interact with ‘money’.