Welcome to Lesson 3: The Future Of Digital Currencies And Blockchain. This lesson explores the crypto future and blockchain focusing on their rapid evolution and the impact blockchain technology will have on global finance and society.
Since the surge of interest in Bitcoin and blockchain technology in 2009, thousands of other cryptocurrencies, or tokens, have come into existence. Currently, over 850 cryptocurrencies are traded worldwide. Popular coins include Litecoin, Dash, Ripple, Stratus, Zcash, and Monero.
By June 2017, the total market capitalization of all cryptocurrencies combined surpassed $100 billion, marking a significant milestone. This growth gave rise to a global industry of cryptocurrency trading.
Blockchain-Based Apps and Cryptocurrency Exchanges
Blockchain-based applications rely heavily on cryptocurrencies. Exchanges serve as access points, enabling the general public to use these blockchain apps through cryptocurrency transactions.
Ethereum’s Role in the Crypto Future
Ethereum (ETH), proposed by Vitalik Buterin in 2013 and launched in 2015, is an open-source, blockchain-based distributed computing platform. It introduced smart contracts, the Ethereum Virtual Machine, and a programming framework to build decentralized blockchain applications.
Ethereum’s market cap quickly reached around $30 billion. Its open-source nature allowed many startups to create their own cryptocurrencies on its platform. Ethereum’s ease of development, a large developer community, technological advantages, and the enterprise Ethereum Alliance consortium contribute to its growing popularity and crypto future.
The Philosophy Behind Cryptocurrencies
Cryptocurrencies aim to dismantle financial borders and barriers, especially in finance and trade. They revolutionize concepts like government currency monopolies, global money transfers, financial privacy, security, and ownership verification.
Criticism and Decentralization Challenges
Despite their potential, cryptocurrencies face criticism from bankers and politicians reacting to the decentralization movement. Nearly a thousand coins compete in this early stage of blockchain evolution.
What is the Crypto Future?
The crypto future could see a single dominant coin or a few leading cryptocurrencies shaping global payments, lending, trading, and banking infrastructures. Within a few years, cryptocurrencies may gain enough traction for mainstream adoption of blockchain-based applications.
Summary
This lesson covered the crypto future, highlighting the evolution of cryptocurrency and blockchain’s expanding role in society and finance. Understanding these trends is key to navigating the future digital currency landscape.Stay tuned for more lessons at PROP365 Academy to keep up with the fast-changing world of cryptocurrencies and blockchain technology.
