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It’s hard to imagine the digital world without cryptos. The market behind it does not stand still and every day there is news about the latest and greatest digital currencies. Many articles on the net read very positively regarding Bitcoin & Co. Investors are blowing the same horn.
Newbies are skeptical and yet there are some indications, such as the establishment of crypto casinos, which speak for the success of the currencies that are still in their infancy. What is there to the crypto hype and what technology is behind it?
Cryptocurrencies and their transparency
Cryptocurrencies such as the successful Bitcoin, but also other digital currencies use a very special technology. This technology, also named as blockchain, is the secret behind the growth within the community of fans, investors and other people. The technology itself is only possible because of our outstanding achievements in the field of IT.
Developers were able to create the blockchain in such a way that the flow of data between the blocks of the blockchain with the help of a chain is not only implemented faster but is also absolutely transparent. The resulting virtual payment process is very convenient for many people. A central bank branch? Thanks to blockchain, only part of our memory. And no one needs a bank card anymore either.
The blockchain principle is quite simple. All participants in the blockchain verify the steps within the crypto transfer from one person to another. This is completely automatic. So users don’t have to do anything. The blockchain recognizes the processes and can match them flawlessly. In addition to this, the blockchain is extremely secure because of the private keys required.
Each block is assigned to a specific participant. Due to the necessary confirmation about the running processes during the transaction, the blockchain is practically impossible to manipulate. In addition, there is no center. Each participant becomes a sender and a receiver. The decentralization saves costs!
Banks are being completely restructured
Our current banking system is lagging well behind digitization. We still carry a bank card with us. It doesn’t matter whether we belong to a local or a direct bank. The bank card has to be there, and cashless payment is not possible everywhere. Conditions that simply do not fit into our computer age. To deposit cash, we always have to go to our local bank. Depositing money in another state or withdrawing it in large amounts in another county is not conceivable, either at the Sparkasse or at other providers.
In addition, we have to wait for appointments and go directly to the bank. It’s true that there are now interesting innovations, such as the video legitimation service. Nevertheless, there is a more digital option. When using cryptocurrencies and the blockchain, we no longer even need a traditional account and the money is well invested. Account maintenance fees would thus be low or completely absent.
The cryptocurrencies in the gaming sector
There is no stopping the gaming industry. Especially online games are very popular. Many gamble against each other within MMORPGs. Thus, distances between real friends can be overcome effortlessly. In addition, there are always new achievements and techniques that make games even better and more authentic.
It is no wonder that cryptocurrencies are particularly well received in the gaming sector. And indeed, various payment providers are already focusing on building in the option to pay with cryptos. The payment giant PayPal is now conceding this option. Those who select PayPal can even pay with Bitcoins as of now.
This is particularly useful in the expanding online gaming. It is easier to pay with virtual money in the digital space than to quickly deposit cash and wait for the bank. The cryptocurrency is also suitable for other online services. The transfer is much faster.
In comparison, transfers at reputable banks still take one to two days (express payment comes with special fees). Companies can receive their money and implement the service faster thanks to cryptos. Thus, both customer and business manager are satisfied at the same time.
Digital money in the medical field
Let’s review the technology: with blockchain, there is no centralized structure. So anyone who sends a chat message via an app does not first reach a central link from which the message is transmitted to the recipient. The elimination of this center equates to increased security. If the center is attacked – by hackers, for example – the entire system crumbles. Personal data could be lost, and data protection is at risk.
Especially in sensitive areas, this must not happen under any circumstances. Especially for private medical records, doctors and insurance companies should therefore rely on blockchain. Within the framework of this, it is possible to transfer the data in encrypted form.
This means that all doctors working with the patient receive new findings and reports from other treating doctors in live mode. This is extremely practical and benefits the success of treatment. If payments are necessary – for example at the pharmacy or dentist – this can also be done via the blockchain and a corresponding cryptocurrency.
Knowledge is power and cryptos make it even better
Seminars, webinars, MOOCs and many other learning opportunities are making our lives more colorful than ever. The education industry is seeing gigantic successes and strives to make it possible for everyone to have access to knowledge. To ensure that a well-structured network is formed from those willing to learn, blockchain makes sense here as well. It guarantees that teachers and students have a secure exchange.
Homework can be shared directly with the whole class. The resulting data provides information about the learning status of the entire class, which can finally be evaluated. The result? An even better education system. Finally, there’s also an end to the hassle of collecting cash for the next class trip. The blockchain quickly shows who has already paid and whose turn it is.
With the help of the blockchain and cryptos, educational gaps can also be closed via the Internet. Thanks to cryptos, the learning offers are paid very quickly and the settlement of an invoice is completely anonymous. This is a point that many appreciate. Their anonymity remains and yet there is a transparent payment.
These two contrasts make up the blockchain and cryptocurrencies. In addition to these areas, there are countless others – such as shipping companies and online retailers – that will use the blockchain system for transparent product and process monitoring and optimization.