Cryptocurrencies! You can’t touch them or physically store them but can use them for trading. They have already entered trading within apps, started to disrupt the search for alien life and have big plans to replace Internet. The ingenuity of Satoshi Nakamoto’s bitcoin and Blockchain creation is now scheduled to revolutionize some of the traditional industries, which have not experienced any radical changes in decades i.e. Banks, Internet and Astronomy. Blockchain can either replace them or revolutionize them completely but these industries cannot escape this technology.
Blockchain technology is a revolutionary concept that would make banking procedures simpler in terms of monetary security and automation. It will forever change the face of financial system, just like what Internet did to traditional media. In future, cryptocurrency may replace money as legal tender or entirely replace the regular currency. Whatever happens, it is definitely not a good thing for government and banks. Let’s find out how.
- Cryptocurrency users can make their daily payments digitally, without interacting with banks and hence avoid the need to pay bank fees. This will root out the existence of traditional banks, which survives on interests and bank fees.
- Cryptocurrencies are generated when a “miner” deciphers a complex computational problem to approve a transaction and include it to the ledger. The current system of banking includes printing money by damaging environment.
- With cryptocurrencies, people don’t have to visit traditional banks every time they need financing.
- This digital format also lowers government control over transactions, promotes ease of doing business and gives freedom to maintain digital assets on real time basis.
- Various online businesses are accepting bitcoin as payment because of availability of “digital wallet”. This is a major shift in business transactions, where value can be exchanged just by flash of the mobile phone.
But the real question is “whether cryptocurrencies and Blockchain technology is a bubble or a concrete?” because the global financial crisis of 2007 or European debt crisis of 2001 narrate a different saga. The potential risks involved in storing wealth in cryptocurrency is much higher than bank account. Also, adopting this technology may replace the need for bank employees and yet again become a source of rising unemployment.
When we talk about the future of Internet, we are actually discussing the ability to communicate with anyone in the world. Any change in this technology can have drastic impact on our lives. And now, new Blockchain developments such as concept of shared database, are paving way for a new type of Internet.
P.S. The most prevalent analogy used to explain Blockchain technology is the technology behind Google Docs.
- The universal applicability of Blockchain technology can replace Internet as traditional digital industry.
- Blockchain technology offers a platform for secure transaction. You cannot individually modify the record, best way to maintain important records, whether it is for government institutions or business organizations.
- Transparency in international financial transactions via Blockchain technology offers a feasible and safe substitute to existing slow and expensive banking processes. Also, one can always refer to the records in case of a dispute.
- The Blockchain databases are decentralized in nature, which makes it difficult for cyber criminals to hack or destroy the database as they generally target central data storage points.
We have got tons of people out there, who are trying to replace Internet Service Providers (ISP) for genuine reasons. For the last 25 years, we have paid a huge amount for the infrastructure that ISPs use but received one of the slowest Internet. This is a classic example of socialized costs and privatized profits. And now, when they own the infrastructure and are hot-shot corporations, they lobby to undermine net neutrality. All of this is being done to privatize profits at the cost of taxpayer.
But is Blockchain technology the new Internet? Or can we compare it to Linux in 1996? Blockchain solutions are dispersed and more democratic than current systems and the open-sourced Linux was similar to this concept. However, limited people used Linux because it was too complicated and most of them continued with the mainstream solution.
The argument about aliens that whether we should look for them or hide from them seems endless. Well! astronomy is not only about aliens but finding the possibilities of life and ability to understand the origin of earth. But the real question is how is Blockchain disrupting astronomy? For that, we must understand how radio telescopes work.
Radio telescopes are made up of thousands of antennas that pick-up radio emissions permeating through the cosmos. All the received data is processed using supercomputer to form a map of the sky to spot the earliest stars and to understand the transition of universe from hot plasma into a cosmos made of galaxies and planets.
Those antennas are made up of GPUs i.e. Graphics Processing Unit, super powerful chips that can process huge amounts of data. The growing demand of cryptocurrency mining like Ethereum is exhausting the supplies of graphics cards in the market. And eventually spiking the prices of GPUs, which is causing problems for radio astronomers.
Cryptocurrency miners use GPUs to decipher the complicated mathematical problems to produce new cryptocurrencies and to make the network safe. But its high demand has led to shortage of GPUs in the market. Not only radio astronomers but its shortage has hurt PC gamers as well as other scientists.
The scope of Blockchain is nearly infinite, many already unearthed, some being examined and others yet to be discovered. It can work for transactions involving value (goods, money and title), record keeping, business deals, records in election management, public administration and public welfare administration. On the other hand, it is replacing or disrupting some of the services of traditional industries. What are your thoughts on this? Do let us know in the comments section below!