The unique characteristics of the blockchain network are the reason why today there are cryptocurrencies, and the crypto market has been growing rapidly since the first digital currency was developed in 2008.
The blockchain network obviously is the foundation for every cryptocurrency that was created, and there is a strong connection between the blockchain system and cryptocurrencies. In fact, if it wasn’t for the development of the blockchain network by Satoshi Nakamoto, we wouldn’t have enjoyed the benefits of blockchain solutions and the advent of the crypto market. In this article, we provide an overview of this relationship and what you should know about the rise of cryptocurrencies and the usage of blockchain technology.
Blockchain Technology
Blockchain technology is considered an innovative database that offers a new way to store data without centralization of the data of the database in one entity or a point.
In other words, the blockchain network is a way to store data across a cluster of computer systems that are all connected to each other, but no node has the authority to make alterations to the records that are added to the network, and this is called decentralized, peer-to-peer based blockchain network.
Each block of transactions is connected to the previous one through cryptography which means that the link between the blocks of transactions is safe, and also each record when it’s added to the network remains there forever, and it’s not possible for anyone to take control of the network or make any changes.
Another attribute of the blockchain network which makes it difficult for any centralization to occur or for any entity to gain influence over the system is transparency of the blockchain network. Every process in the system and data about the transactions remain visible to every user network except for the identity of the users.
Cryptocurrencies and Businesses
The business sector decided to accept crypto payments with the latest Bitcoin’s bull run, although there has been gradual support towards BTC in general. But, in the last couple of years, with the longest bull cycle in the crypto markets early in 2020, many famous brands around the world decided to support the mainstream adoption of cryptocurrencies.
As a result, are over 10,000 cryptocurrencies on the blockchain network today, and although they have different attributes or they have some differences in the way the tokens are produced, they represent alternative payment methods and are based on blockchain technology. In other words, online users can be sure that their payments are safe and secure from third parties.
The processing fees for cryptocurrencies are much lower compared to fiat currencies, and also the processing time is quite short in many cases; you’ll notice that crypto payments are approved instantly due to the design of the blockchain network.
This is one of the major reasons why online casinos accept crypto payments today, and it actually represents one of the latest innovations in the crypto sector. There are many casino sites and websites like Big Wins crypto casino, which accept major cryptocurrencies.
You can wager with your crypto funds on your favorite casino games and even access crypto bonuses. It’s also worth mentioning that most online casinos don’t have any additional costs for accepting crypto payments.
Some of the famous brands which support crypto payments are Twitch, Tesla, OKCupid, Home Depot, and many others.
Mining Process
Another important aspect of blockchain technology is crypto mining which is the process where new cryptocurrencies are created and are also important because, through the crypto mining processes, the blocks of transactions are verified.
This is a unique attribute of blockchain technology through which the blocks of transactions are included in the blockchain network, and also, the miners are getting blocks of rewards for their work on the blockchain system.
Based on the competition in the blockchain network, crypto mining can be an extremely time-consuming and sporadically rewarding process. However, it is still very important for blockchain technology as well as for cryptocurrencies because it ensures that the blocks of transactions are legitimate, resolves the double-spending problem, and it also maintains the overall security of the network.
Other blockchain systems don’t resort to mining in order to produce new tokens, but again it’s important to have a solution in place that will protect not only the security but also maintain the credibility of cryptocurrency.
Usage of Crypto and Blockchain
Cryptocurrencies are used as a payment option by businesses because there are a lot of crypto owners that want to exchange their cryptocurrencies for goods and services from various popular brands. In addition, blockchain technology is also used to enhance the operations of businesses because it translates its great attributes to specific business processes.
For example, it can be used for real-time tracking of products in the supply chain, and it can also be used for greater security in the database of the business and more.
Moreover, crypto blockchain-based solutions are also important for the public sector. For example, Followmyvote is a blockchain-based solution created in order to mitigate electoral fraud. It can also be used to enhance the security of databases that protect the personal details of citizens and to ensure the safety is for of medical records, for example.
Cryptocurrencies can also be used in different online as well as brick-and-mortar stores that accept crypto payments. As we mentioned earlier, there is an increasing number of businesses that support crypto; however, right now, that is not a mainstream adopted payment method, and you cannot rely on new cryptocurrencies to shop for different products and services.
Summary
In conclusion, cryptocurrencies have become more popular thanks to the incredible design of the blockchain network, and also blockchain-based solutions are beneficial for many online businesses worldwide. In the future, we are expecting more blockchain-based solutions to be integrated into both business and public sectors and to be easier for cryptocurrencies to be used in day-to-day live for different purposes, not necessarily just for purchasing products and services but also for investments.
