Cryptocurrencies have become possible thanks to blockchain technology. It provides a key difference from traditional e-money systems – no one can fake a coin or write it off from someone else’s wallet.
The thing is that all data in the blockchain is saved as separate “packages” – blocks. All blocks are combined in a continuous chain – each subsequent block contains a hash of the previous one. As a result, you will not be able to make any corrections retroactively – hashes of all blocks after the edited one will change. In addition, since each node of the network has its own copy of the blockchain, there is no administration that could turn a blind eye to such a change.
The unique properties of the blockchain provide unprecedented opportunities, as well as create very unusual problems.
”Too many” options in crypto
A digital currency that can’t be forged and can’t be fudged with could not fail to become popular. Crypto adoption is steadily growing, despite fluctuations in exchange rates and regulatory pressure.
T At the same time, the problem of a “bridge” between the “normal” fiat world and the cryptocurrency world still remains. In order to fully utilize all the advantages of digital money, you need to be able to exchange them for fiat. Demand creates supply, and the market has many ways to buy or sell cryptocurrency for fiat:
- Cryptocurrency exchanges
- P2P platforms
In each of these categories, the number of representatives is measured in dozens or even hundreds. And the rates for different currency pairs differ on all these platforms. Sometimes just slightly, sometimes significantly. And these rates, of course, change fast. So monitoring exchangers and tracking rates is extremely important for everyone who works with cryptocurrencies.
Blockchain is not just about cryptocurrencies
Blockchain technology is used not only in the currency industry. An immutable database that can be stored in sync on multiple nodes at once and does not need to be administered is useful across the board. Blockchain is already used in a variety of industries:
- Land management
- Rental property
- Jewelry production
In other words, wherever you need smooth and highly reliable accounting of assets and valuables – blockchain rocks.
What other technology today can boast the same influence and versatility?