Blockchain is a digital ledger in which transactions made in a cryptocurrency are recorded chronologically and publicly. The attractiveness of this new technology is that it allows users complete financial control since there are no banks or other third parties involved in the process. However, there are some risks that come with purchasing cryptocurrenices such as Bitcoin, Ethereum, and Ripple.
Due to the rise of cryptocurrencies, hackers have been discovering new ways to breach data. Since blockchain technology is still in the early stages, it is vulnerable to security issues. The article below discusses how hackers have used an app named Coinhive to mine digital currency. In the past few weeks, numerous US and UK government websites have been compromised. Hacking is enticing since the currency is not on anyone’s phones or computers, instead it is held on companies websites alongside many other user’s transactions. Because of this framework, multiple user’s sensitive data have been breached simultaneously. There is now an increasing market for software, services, and hardware to secure blockchain activity and it was estimated that $259 million was spent in 2017 for businesses looking for a solution.
Do you think investing in cryptocurrency is secure? Does it have a bright future? Would you/have you invested in any?
Technology is always evolving. Blockchain Technology is something created from the always evolving technology. Blockchain is an open, decentralized ledger that records transactions between two parties in a permanent way without needing third-party authentication. This technology is expected to dramatically reduce the cost of transactions. Many entrepreneurs are invested in blockchain and nearly 15% of financial institutions are using it. One example of a company that has its own blockchain technology is Ripple, which is based in San Francisco. Ripple has partnered with a few banks to use its blockchain technology. If a bank were to use Ripples blockchain technology along with its digital asset, which is called XRP, then it could settle payments in 4 seconds. This is a huge time difference because traditional systems will take between 3-5 days. This could lead to companies being able to process a lot more transactions daily. I personally see this as something many more companies will start to use eventually.
Do you think that more companies will use this technology in the future? Feel free to comment below.
Blockchain technology is a digital, decentralized, and distributed transaction ledger with a growing list of records that is linked and secured by using cryptography. Due to its recent growth in popularity, corporations are starting to understand the technical capabilities for blockchain technology and finding use cases for it, especially in the financial services industry. Currently, the third largest cryptocurrency Ripple (XRP), with a market cap of approximately $50 billion was founded in 2012. Ripple has gained a tremendous amount of popularity since its one of the most scalable cryptocurrency. XRP connects banks and payment providers through its blockchain, RippleNet, simplifying global financial transactions. It’s advantages are quicker transaction times, lower transaction costs, and tracking transactions on its network. In comparison to Bitcoin, cross-border payments could take hours that is associated with ridiculously high transaction fees while Ripple can be completed in a matter of seconds for a fraction of the price. It has locked partnerships with large organizations such as American Express, Santander, and other financial services companies in Europe, Japan, and South Korea.
In the future, do you think Ripple gain mass adoption and replace our current financial system? What are some of the risks if there was a full scale adoption of Ripple? What are some other applications can blockchain technology be used for?