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Meanwhile, there is already talk about the evolution of cryptocurrencies. With this, a really huge term has been formed. Although most people still think of Bitcoin when they hear the term cryptocurrency, there is also a whole range of other very interesting cryptocurrencies at the same time.
However, Bitcoin is the forefather of all cryptocurrencies and it is still the most important cryptocurrency of all, which is clearly reflected in its enormous market capitalization alone. Currently, it stands at 197.855 billion USD. In second place in terms of market capitalization is Ether with 39.762 billion USD.
Bitcoin is now also being used in Bitcoin casinos. Thus, it is already having a significant impact on business life. More areas will follow, or rather, there are already some areas in which cryptocurrencies play an important role. This is mainly due to the technology behind cryptocurrencies, the blockchain.
The cryptocurrencies and the blockchain
The blockchain has become known primarily through the trade with cryptocurrencies. With the help of this technology, it is ensured that Bitcoin and Co are transferred directly and, above all, securely from the sender to the recipient.
As a decentralized network, the blockchain offers solutions that cannot be achieved by conventional centralized systems in this form. What is special here is that neither governments nor institutions can influence trading in any way. To put it more precisely, this means that payments can neither be stopped nor diverted here.
Ether ist the second largest cryptocurrency
As the market capitalization has already shown, Ether (ETH) is the second largest cryptocurrency. This cryptocurrency was launched in 2015. Ether is the internal currency of the system “Ethereum”. Ether is the absolute pioneer in terms of smart contracts. In the case of contractually agreed payments, these are made completely automatically. Already, many industries are testing this very principle. Airlines are at the forefront here.
Here, particularly clear advantages become apparent in the case of cancelled flights. In the event of such a cancellation, passengers are no longer forced to claim compensation, as was previously the case. Instead, a predefined sum is automatically paid out to the affected passenger in the event of an incident. As soon as the outage is registered in the database, this process automatically takes effect.
In this way, cryptocurrency, in this case Ether, is clearly making an impact on business life, as this procedure clearly provides significant relief for airlines. Moreover, the same is true for insurance companies. Unlike Bitcoin, Ether is rather not designed for daily payments. The point is to relieve both the companies and the customers in equal parts.
The Ripple is loved especially by banks
Ripple is currently planned to replace the current Swift system in the future. Currently, all payments between financial institutions are processed via the Swift system. But international banks are already working with the new currency. The unbeaten advantage of this system is that about 1500 transactions can be executed within one second.
Primarily for investors who do not want to use cryptocurrencies primarily for actual payment transactions, Ripple is particularly interesting. Here, you invest primarily in a really very promising vision.
Bitcoin Cash is a relative of the Bitcoin
8 years after Bitcoin opened the crypto market, a relative, Bitcoin Cash, joined the crypto world on August 1, 2017. Within this short period of time, however, Bitcoin Cash is already coming up with a real success story. Just six months after its release, the stock market price of Bitcoin Cash (BCH or BCC for short) climbed by more than 300 percent.
Even though it is only a small relative of the big and outstanding Bitcoin, Bitcoin Cash can clearly be convinced with some advantages. Above all, its blockchain technology is meant. In the meantime, the technology has been adapted much better to the mass use of digital currencies.
For a long period of time, the Bitcoin’s information blocks, which can be used to execute transfer orders, were only one megabyte in size.
Business models will become obsolete*
Due to the awakening of cryptocurrencies and the closely related blockchain technology, the consequence will be that many old business models will either be strongly challenged or simply become obsolete.
Banks, for example, could become superfluous in the future, as a third instance would then no longer be necessary. Many processes would not only become significantly faster, but also cheaper. Above all, however, many different applications could work together as equal partners in a network, because the blockchain networks are equal partners without central servers.
Currently, many companies from the banking sector, the insurance industry and also from the energy sector are experimenting with this technology. Efficiency advantages and cost savings are the objectives here.
The blockchain is a decentralized, i.e. distributed, database. This means that nothing is stored here at one point in a data center. Each user of the respective blockchain has the complete version of the database on his computer. In addition to the distribution of the data, many other cryptographic processes also ensure that the data is tamper-proof. Every participant here has a complete copy of all the data and so any one-sided manipulation would be noticed immediately. This is the reason why the data is tamper-proof.
Banks could also be strongly affected here
A test run is already underway to clarify whether clearing houses can be dispensed with in the future with the help of the blockchain. At present, their task is to handle trading between banks and to ensure that the transfer of sums of money and securities is secure and correct. These are precisely the tasks that the blockchain could subsequently handle autonomously.
Business life in the music industry could also change
Due to the fact that blockchain technology can automate many processes, the entire music industry in particular is extremely interested. After all, music production in particular is made up of a gigantic apparatus. In addition to distribution and rights management, there are also huge labels.
It’s all about distributing funds everywhere. With the help of blockchain, these complex processes could be replaced very easily. Currently, intensive work is being done on using the blockchain with regard to rights and licenses.
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