You have surely heard of cryptocurrencies, or at least of Bitcoin (BTC). These virtual currencies are a new kind of financial asset. They allow for the digitization of money and enable transactions on the Internet. With them, the virtual is at the service of the real. However, their uses are extremely varied, from the use of shared software to new ways of saving. Here are some possible applications of cryptocurrencies, which could well revolutionize our future:
Source: Pixabay
For truly secure transactions
We know that Internet transactions lead to all sorts of frauds, more or less severe. With cryptocurrencies, this seems more complicated to achieve. Indeed, cryptocurrencies can allow transactions to be both verified and secured, thanks to the “blockchain.” The blockchain is the backbone of cryptocurrencies, allowing them to be entirely immutable. Each step of a transaction is recorded, it can neither be copied nor modified. In the end, the risks of theft and fraud are greatly reduced, and it becomes easier to “trace” stolen money.
As an investment asset
More and more consumers are choosing to invest in cryptocurrencies. This type of asset is relatively new, but it can prove to be very lucrative, provided the right choices are made. The virtual currency market is very volatile, meaning it undergoes significant fluctuations. For traders, it’s a matter of buying Ethereum (called ETH), Bitcoin (BTC), or any other currency when the price is low, and then selling it when the price is high. They can thus make significant profits, which is why cryptocurrencies have become a common saving tool.
Source: Pxhere
To fight against counterfeiting
Cryptocurrencies also allow fighting against counterfeiting on the Internet. Blockchain enables precise information storage about any manufactured item. Its origin, composition, characteristics… Everything is recorded thanks to the unique cryptocurrency tokens that are created. This ensures the authenticity of any piece and prevents counterfeits. Recently, the LVMH group partnered with Microsoft and Consensys to propose a luxury traceability blockchain.
To create decentralized applications
Decentralized applications, also known as “dApps,” are software that operates globally. They are stored on the network formed by numerous computers around the world. dApps automate functions that were previously manual, thanks to the use of “smart contracts.” But the biggest advantage is for customer information security: decentralized applications allow storing sensitive data such as identifiers, passwords, medical information, or tax data, without them being controllable by a central body.
Cryptocurrencies therefore have enormous potential. In the future, they will allow for great automation and more protection for consumer data. It would thus be reductive to consider them only as simple virtual currencies!
