Understanding Blockchain, Cryptocurrency, and the Powerful Benefits they possess

Understanding Blockchain, Cryptocurrency, and the Powerful Benefits They Possess

Blockchain and cryptocurrency are at the front of many conversations right now as more people look to adopting this next-level tech. While the world continues to navigate this escalated digital direction, largely influenced by the COVID-19 crisis, the concept of crypto trading and blockchain-based structure has now been positioned as an imminent possibility.

A Regal Core Markets report noted that, in response to the setback caused by COVID-19, “various online investment tools and platforms have started to appear online, aiming to improve trading capacity and monitoring capability.”One of the reasons why blockchain and cryptocurrency is at the top of the conversation is because of their structure and capabilities.Blockchain’s decentralized and cryptographic nature creates an opportunity for people to confidently transact from peer to peer, eliminating the need for intermediaries in the process. As the world moves towards a cashless society and depends on digital transactions for dayto-day functionality, it’s important to consider a few ways in which this space has benefited the world.

Introducing seamless cross-border transactions Blockchain provides a way to securely and efficiently create a log of sensitive information, without worry of tampering or altering taking place. This is ideal for virtual transactions, as they can take place without the worry of infiltration. Instant transactions are a major convenience for anyone these days, especially with the prevailing COVID-19 situation. But, from a higher level perspective, digital currencies make it easier for cross-border payments to take place. The current system is also plagued by complex, opaque operations that have resulted in friction and frustration for both consumers and corporates.

Revolutionizing the Gaming Industry Gaming is another use case where blockchain and cryptocurrency have proven beneficial. The gaming industry thrives off of its virtual goods market, where in-game assets are purchased by the minute. Digital goods actually account for over $50 billion of the industry’s value. Blockchain and cryptocurrency serve as a gamechanger for independent outlets in the industry, as well as for players themselves, because they transfer the control game developers and publishers presently have.

Asset Tokenization Picture a world where people can move real-world assets (e.g. real estate, gold, etc.) almost instantaneously - in a peer to peer manner. A process that would happen through a secure digital ledger that keeps records of every transfer and can legitimately prove asset ownership. This is known as tokenization where “real-life” assets can be converted into a token that can be moved, recorded, or stored on a blockchain. Assets that were formerly illiquid can now be converted into a tokenized form, therefore making it much easier for trades and settlements to take place. This is far easier than the extensive process of clearing and settling through third parties – a concept that is common when trading property, for example.