A cryptocurrency is a digital currency that is entirely protected by encryption, which makes fraudulent transactions nearly impossible. Cryptocurrencies are decentralize networks based on blockchain technology, which is a distributed ledger enforced by a computer network. (sometimes referred to as chains or nodes). In simple terms, cryptocurrency is a decentralized form of digital money based on blockchain technology.
Are blockchain and cryptocurrency interlinked?
Well, yes there is a connection between the two. The blockchain serves as a technology that acts as the foundation for the operation of cryptocurrencies. Cryptocurrency is a type of decentralized digital money that is based on blockchain technology. Several businesses are currently implementing cryptocurrency technologies.
A blockchain, to put it simply, is a database of all crypto transactions that have occurred anywhere in the world at any time. It is a data storage technology that makes altering, hacking, or cheating the system nearly impossible.
Does cryptocurrency have a positive impact on the future of digital money?
Everybody is talking about the crypto trend but does it have a promising future? Yes, cryptocurrency does have a positive impact on the future of digital money. Although 2022 saw a crypto winter, it has great potential for the concept of digital money as well as several crypto investors all over the world.
Let’s look at the top 3 impacts of the crypto market on digital money transactions-
- Lowers the risk of fraud
The most important impact that cryptocurrency will always have on the transactions of digital money is the reduction of fraud, cybercrime, and hacks. This is because of the secure transactions it offers. It do not allow any kind of alterations, and modifications to use on the nodes.
- Ease of money transfer
Cryptocurrency makes the process of money transfer extremely easy. Why do we say this? This is because it provides ease when we transfer money in a digital form rather than bank transfers which might be slow when it comes to international deposits and transfers.
- Cost-effective
Crypto transfers, whether national or international, are instant, do not require fees and can be traced and safely kept in the blockchain. Thus, it is extremely cost-effective.
Future of crypto and blockchain technology – Kavita Gupta
The future of cryptocurrency is completely safe and has significant impacts on the accessibility of digital money. Individuals and countries altogether can benefit from digital currency. There is more chance for ownership, & financial inclusion at a much cheaper cost, greater confidentiality, and better access to the global marketplace.
Kavita Gupta is a thoughtful crypto advisor and founder of Delta Blockchain Fund, a strategic and global blockchain fund. She has been in the financial technology space, as well as Delta Blockchain’s current and future objectives, for over 17 years. She is an Ethereum supporter, but she also pointed out that alternative blockchains are being use in place of Ethereum due to lower gas fees. She believes that enterprises would employ a mix of blockchains and will choose additional blockchains based on their preferred industry.
She also claims that in three years, a model of interoperable chains based on multiple use cases will be available. Because numerous blockchains offer distinct benefits and entrepreneurs require them all that is- security, productivity, throughput, and low cost. Hence, blockchain and cryptocurrency can be game changers for enterprises and individuals altogether.
She oversees the expansion stage blockchain investment fund Delta Growth Fund as well. As the founding managing partner of Consensys Ventures, Kavita Gupta also launched Tachyon and served as a board member of the Dusk Foundation.
What is Ethereum? Applications and Future
ETH is one of the most popular cryptocurrencies introduce by Ethereum right after Bitcoin. In simple terms, Ethereum is a decentralized blockchain platform that is powered by blockchain technology. It features its own cryptocurrency known as ETH or Ether. It can be use by anyone who wants to design a secured digital technology. The major features of Ethereum include significant factors such as- it is open source, decentralized, secure, and programmable.
Participants have complete ownership and visibility over transactions since the data records are immutable, verifiable, and securely distributed across the network. Moreover, as a cost of processing transactions on the web, a sender must sign and use Ether, Ethereum’s native coin. It is the most preferred blockchain for big enterprises, businesses, and developers who are building technology based around Ethereum and wants to transform several sectors and make an impact on our daily lives.
Ethereum vs Bitcoin | Are they the same?
People often get confuse about Bitcoin and Ethereum, do you feel the same? Let’s help you understand the difference. A major difference between the two is that the maximum number of Bitcoins that can enter the chain is 21 million, whereas there is no limit and thus the maximum number changes in the case of Ethereum coins is around 120 million.
In addition both work on the concept of proof-of-work consensys, but there is a little catch here. Bitcoin can produce 5-7 transactions per second, and in the case of Ethereum, it can support around 30 transactions per second.
Applications of Ethereum
- NFT
NFTs are usually tokenize digital items using Ethereum. They are secure on the Ethereum blockchain and allow a single owner at one point in time. These can sell anywhere and owners can have access to the global market.
- Dapps
Also known as decentralized applications, they use Ethereum to modify existing business models or create new ones. Dapps run on Ethereum, a public, open, decentralized platform over which no single person or group has authority.
Dapps are run in a virtual environment known as the Ethereum Virtual Machine (EVM) so that if a smart contract contains a defect, it does not disrupt the normal operation of the blockchain network.
- Smart contracts
Smart contracts are implement automatically when specific conditions are met, without the assistance of any third party. They are not finite to and can be use outside of Ethereum, however, they are best recognized for their use on Ethereum. Although Bitcoin enables basic smart contracts, its uses are restrict in comparison to Ethereum’s.
What is the future of Ethereum?
Ethereum has a grand future in the world of cryptocurrencies. This is because of the recent Ethereum Merge that is plan for September 15, 2022. This will have major positive impacts on cryptocurrency trends and investment overall. Ethereum is here to stay as the graph of transactions is going up and the increasing number of applications is based on the platform.
Furthermore, the developers are looking to create tech-based apps on the Ethereum network, this could result in a great future for Ethereum. Many big enterprises, corporates, and emerging startups are eyeing Ethereum as the next big thing for their business.
Considering expert opinions, Kavita Gupta Consensys Former Member, founder of Delta Blockchain Fund considers Ethereum one of the biggest inventions in the crypto market. She is a leader in financial technology and feels that blockchain is here to stay.
She is an Ethereum supporter, but she is quick to point out that alternative blockchains are being use in place of Ethereum due to lower gas fees. She believes that firms would employ a mix of blockchains and will choose additional blockchains based on their industry emphasis.
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