Cryptocurrencies and blockchain
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Cryptocurrencies and blockchain are the main innovations experienced lately in the scope of the monetary business. Generally, changes and revolution inflict both affirmative and negative impacts on the economy and cultural practice of the community. Remarkably, cryptocurrency and blockchain possess the unlimited capacity to revolutionize and change the financial industry and global dealings as they allow massive transfer of money all over the globe in the form of digital currency (Bajpai 2018 1). However, these concept of cryptocurrency and blockchain are underemployed in the present days as their proficiency is either in the trial or evolution stage (Fry and cheah2018 343). Meanwhile, blockchain is an electrical communal ledger used to register all cryptocurrency transactions in a sequential manner (Takemura 2018). Cryptocurrency is a digital virtual currency developed to function as a sort of exchange in world business. Cryptocurrency uses strong encryption technique called cryptography to safeguard all the financial dealings and counterfeiting of more cryptocurrency units (Hassani, Huang and Silva 2018). Cryptocurrency and blockchain technology has developed extremely popular amongst business people in the near past. Cryptocurrency is likely to become a dominant interference in the financial network besides negative impact and the development of other traditional money transfer systems because of various the reasons that include;
Independent form of transaction
Transactions involving cryptocurrency and blockchain technology is a much more sovereign manner of dealings than the transactions involving traditional currencies. The transactions engaging cryptocurrencies transpire in a decentralized way. That is to say; the deals do not rely on any governmental or banking entity. Further, distribution ledger technology does not intermediate permit account administration and information keeping (Mckinney, Shao, Rosenlieb and Shao 2015). Consequently, excluding the presence of a third party during the dealings as each computer connected to the blockchain webbing finds a reprint of the ledger without human interference (Vigna, Casey 2016). This style creates a form of sovereignty among traders using the cryptons, trust and a sense of safety during transactions (Novaes et al. 2018).
Safe mode of transaction
Cryptocurrencies and blockchain is a reliable method of money exchange in the financial market. Indeed, in the world where there are many robbers and thieves, Investors and traders would rather trade most reliably and safely existing. Cryptocurrency makes certain the safety of every investor’s finances through the blockchain technology which is hard to tamper with. (Delmolino 2016 79). Moreover, offline cryptocurrency wallets ensure utmost security resisting computer hackers and systematic assaults. Nonetheless, the encryption employed in this innovation does not permit Crypton units counterfeiting and forgery (McKinney et al. 2015). Counteracting scammers who pretend to be buyers while transactions through cryptocurrencies cannot be reversed solely by the sender (Fasson 2017 1). Correspondingly, various banks have commenced numerous studies on the virtual and digital currency to develop and intensify any worry in the systems of blockchain which uses the distributed ledger technology. The banks also try to establish a methodology which cannot intimidate the authority and powers of the central bank of respective countries’ to control its currency (Ametrano 2016).
Dealings involving cryptocurrency and blockchain technology are competitive owing to the fact that. First, these technologies enable the decrement of transaction cost since there are no currency conversion costs. Distinctly, cryptocurrency is a virtual digital currency which operates separately from any government interference or control. Thus no border obstacle or currency conversion payments during international trade and dealings (Jannson 2017). Therefore cryptocurrency a comprehensive digital currency which can be used globally regardless of the respective country’s currency value or economic status. Accordingly, the nonexistence of border difficulties is business friendly to private business owners and operators. Therefore enhancing trade between individual entities and the companies’ worldwide making cryptocurrency and blockchain technology real revolution in the financial market and international trade. Inevitably, the global market exposes traders and consumers to a comprehensive quality of goods and services with various prices to potential buyers. Second, most of the transaction cost while dealing in the cryptocurrency and blockchain technology is repaid to the customer by the website after the deal. (Thellwall 2017) Besides, many of cryptocurrency websites provide free transaction. Making the system of cryptocurrency cheapest way of operations more than any other money transfer system. Finally, the disengagement of the third party from all transactions involving cryptocurrency make the trades through cryptocurrency cheap.
Few or no regulations involved while dealing with cryptocurrency and blockchain. Nonetheless, there is no strict regulation on the amount of money which can be exchanged between dealers through virtual currencies such as bitcoin and litecoin. Nevertheless, most of the traditional currencies transfer systems restrict the amount of currency which can be exchanged through their networks and website (Katsiampa 2018). Notably, cryptocurrency provider businesses are working around the clock to establish some few regulation and by-laws which are fundamental in developing an open digital dealing system to be acquired by the volatile financial purview (Schapp & Festa 2018 78). Additionally, Rules and bylaws are obligatory to handle accordingly the competition between corrival companies providing digital currencies such as bitcoin and ripple. (Bouri et al. 2018). Moreover, rules can aid in the eradication of most consumers issues about the solitude of their deals (Catania, Grassi and Ravazzolo 2018).
The information in the Blockchain database is freely provided to all users making the system trustworthy and transparent. If a new customer joins the network, he /she is given access to the Blockchain database where he/she can access and verify every transaction which has ever happened through the blockchain. For this reasons, cryptocurrency and blockchain technology is enticing not only investors in the financial institution and stock exchange but also many other traders in the purview of music, diamond, weapons, insurance, and drugs (Lambert 2017 2). There has been a suggestion that this type of electronic ledger distribution technology employed in with blockchain technology can be applied in the voting, vehicle registration and weapon registration by the central government, and medical records. Owing to that this technology can moderate the procedure of ownership recognition and dependable.
Concurrently, the blockchain and cryptocurrency businesses are undertaking the charge of some operation complications to be able to surpass the traditional monetary systems and accelerate to the mainstream. The enhancement such as; firstly, cryptocurrency companies are refining the configuration procedures. The setup time of effectual cryptocurrency and blockchain technology has been monotonous and tiresome thus demoralizing potential traders. Unavoidably, updating the setup time and developing a good setup process will attract more investors and users (Hayes 2017). Secondly, cryptocurrency and blockchain companies are working tirelessly around the day to decrease concern resolution period. Hence increasing the effectuality of the system which is profitable for everybody engagement. (X Wang and Schneider 2018).besides, cryptocurrency and blockchain companies are encouraging quick user, and general public awareness to help the general population comprehend the concept of cryptocurrency (Davis 2018).
Primarily, the theories represented in many books about innovation relates directly to these innovations practice. For instance, the method of spherical cowpox which explains that the necessities promote the change from essential investing speed which is required for trailing mistakes and reducing commercial risk in underperformance. This theory portrays that the need for alteration in the system of cryptocurrency and blockchain technology will develop a shift in the administration of the cryptocurrency and blockchain businesses. The theory of making it visible also connect directly with this technology as the developers of the system used both known, unknown, hidden and unhidden information to develop the system. Principally, the theory of making it visible contains four primary sectors; hidden, unhidden part, known part, unknown part.
The cryptocurrency and blockchain technology is a clear example a disciplined innovation. Given the fact that its innovators adhered to the rules and regulation governing the financial industry. Moreover, the critical decisions concerning this technology are made in a way that helps to avoid unnecessary tracks and nurturing right tracks. The idea of cryptocurrency and blockchain like any other innovation idea was unbelievable to many people, but through creativity, flow, and experience of innovators, it worked excellently. The flow which arose due to a clear set of goals by the innovators and the immediate feedback and response of users enabled the success of this technology. Further anxiety, fear of failure and impatience during the development of this technology is avoided by creating a right balance between perceived challenge and perceived skills. High data creation and uncontrolled increase in the population increases the need for a fast money transfer system like cryptocurrency and blockchain just as out mind relates with them in mind. This improvement refers directly to the theory ‘How can we make it happen.’ The idea of blockchain uses extraordinary events hidden among the ordinary events.
Remarkably, given the potential of this distributed ledger technology in the current business operations, the processes and mode of doing business can be simplified abundantly. Therefore replacing the inefficient accounting system and payment networks of the financial industry the theories studied in the class have unswerving relation the innovation trend. Innovation is a result of necessity. The change of cryptocurrency and blockchain technology is a real breakthrough in the world of the financial industry. Full employment of this technology will have a devastating impact on every aspect of international trade and money transfer. Many companies established and starting attracted by the idea of removing the middleman and moving towards decentralization and democratization of transactions may adopt this technology for the better future business dealings. As reduced international delays and inefficiencies