Both cryptocurrency and blockchain became fairly interchangeable with one another. Who do we have to thank for that? Bitcoin, of course!
All sorts of new crypto coins are making their way into the digital currency world. The question is what role does blockchain play in shaping one particular crypto exchange more favorable than another?
The thing is when someone says they have paid you through blockchain, what they are actually saying is that they paid you through Bitcoin. That was the general take some time ago.
All of that changed since the introduction of alt-coins as alternative cryptocurrencies. From here on the perception or stance that people took on blockchain technology is that it was any kind of crypto that runs on a shared ledger that is coupled with a mining algorithm.
It wasn’t long, then Ethereum saw the light of day so that folks exclaimed that blockchain is literally any kind of system.
As you may have noticed by now, the technology to do with crypto coins is not all that consistent. The same is true of the blockchain.
However, there is a perfect cohesive movement around this term in that people are forever experimenting and making it better by trying new things. That makes it way more valuable than before. Sadly, you come across industries where nothing has changed in 20 years. Until something like blockchain comes along where everyone starts innovating.
It goes to show that it is still in its startup stage. Having said that, blockchain is part of a very secure, shared database.
Why is it so different from anything else we’ve experienced?
At first, the experts thought that there was no need for blockchain. This idea was driven by the fact that they were deploying various payment solutions for banks and in the means of moving away from a shared ledger as it added a lot of overheads.
Governance is a complex issue, and then you have to deal with scalability and privacy issues. What folks really value about exchange platforms and digital currencies is the transparency and consistency associated with these. Either the full payment is executed or nothing. Then there is the added bonus that the transaction is instant, and you are given feedback along the way.
Some companies who utilize blockchain, do not link themselves with this commodity, but instead, think of themselves as a payments company.
A one of a kind cryptocurrency made its way into the digital currencies sphere.
Once this particular cryptocurrency came it, mining formed no part of their standard criteria. Not long after, Ethereum came out. From here it just kept expanding.
Nowadays, you may want to think of crypto of being in the cloud where other people’s computers would be used to host things.
While this concept is not anything new, it did represent sort of an enterprise movement where most folks began to rethink their business use cases and innovated the way they do things.
What happened is that they applied a consensus algorithm on a transactional level rather than a ledger level. Therefore, we no longer think blockchain will replace databases.
During 2017, banks reached out to an exchange platform that is still new and asked if they could use RXP, which is their brand for sky money. Doing so would eliminate the requirement to foster correspondent relationships.
Be wary of having your monies deposited in a bank that is part of another country in case they go under, in which case you would have massive problems to deal with.
We are well aware that global commerce is on the increase. Therefore, there is a higher demand for cross-border transactions, which also creates tension. Banks desire fewer relationships as they are time-consuming. However, customers want easier cross-border transactions for which XRP, where blockchain is involved, provides the way out.
Where Does Bitcoin Fit Into the Picture?
Gold is precious. This is not because it is regarded as something shiny, conductive, and malleable, but due to what it stands for.
A few features worthy of mentioning that makes gold extremely valuable is that it’s hard to counterfeit; easy to merge, refine, transport, and subdivide; and also, very scarce.
Bitcoin does a bit more than gold such as travel across the world, from one individual to another, with no middle persons, within minutes.