In 1999, the economist Milton Friedman dared to predict the birth of the ecash. He defined it as a payment method based on the possibility of transferring funds over the Internet, between A and B, without any prior knowledge of each other. Years later, in 2013, Marc Kenigsberg, creator of the Bitcoinchaser.com blog, stated:
“Blockchain is the technology. Bitcoin is simply the first mainstream manifestation of its potential”
Both visionaries predicted the birth and power of cryptocurrencies and the strength of blockchain technology as a fundamental pillar of an ever-growing economy.
What are cryptocurrencies?
Only, we can define cryptocurrencies as a digital medium of exchange. They are considered a digital asset and use cryptographic methods to ensure the integrity of their transactions, facilitate trade and control the issuance of new cryptocurrencies.
The first known cryptocurrency is Bitcoin and was created by a person whose pseudonym is Satoshi Nakamoto in 2009. He was the first to develop the technical document or White Letter supporting Bitcoin and designing the first blockchain database for its exchange.
The main characteristics of cryptocurrencies are:
- They do not depend on any centralized entity for their issuance.
- Transactions made with cryptocurrencies are irreversible. No one can delete or modify a transaction after it has been carried out.
- There are no intermediaries in the exchange process. Unlike traditional currencies, there is no intermediary between the holders of cryptocurrencies at the time of exchange.
- It is not possible to counterfeit a cryptocurrency. Thanks to the technique of cryptography, the authenticity of these digital assets are fully guaranteed.
- Total anonymity and privacy for their holders. How the exchange system is structured protects the identity of those who participate in the exchange process.
- Currency convertibility. It is possible to exchange them for different types of currencies in the market.
The value of cryptocurrencies is variable since it is not anchored to any physical asset. For this reason, fluctuations are constant and are susceptible to speculation.
Today, Bitcoin tops the ranking of the world’s top 100 cryptocurrencies with a value of approximately $33,000. It is followed in decreasing order by Ethereum with $1,894 and Tether with $1.00, cornering between the three of them almost 67% of the total volume of amounts traded for the third week of June 2021.
The power behind cryptocurrencies: blockchain technology
While it is true that cryptocurrencies have gained a privileged place in the digital economy, it is also true that blockchain technology is the real crown jewel in this incredible digital asset.
Exploring beyond the obvious is necessary for curious, creative, and agile minds such as those making up the Hypernova Labs teams. And discovering the high potential of blockchain technology to make it available to our customers is a challenge.
Blockchain technology makes it possible to keep a public record of transactions in a decentralized way and store and maintain information in a network, ensuring its integrity and privacy.
It has infinite applications for the need for data documentation, and one of its key features is that it does not depend on a centralized entity. There is no bank, government, or organization controlling the information. The design of the network allows the users themselves to validate and verify the exchange of information.
Security is another essential key when talking about blockchain. Many events in recent times have made users doubt the security of their data on the network. Information theft or identity theft are just some of the crimes that jeopardize shared information and have made users doubt the security of online services.
But the blockchain guarantees data security since it is not possible to add, remove or modify information without all network users being aware of it. Each time a transaction is performed, a copy of this operation is stored in each node of the network. These nodes are connected in an orderly and sequential fashion. For this reason, if someone wants to alter the information in one node, there are thousands of records of the original transaction in the rest of the network.
Likewise, each node or block stores the information of the block that precedes it plus its own, thanks to data encryption technology. This generates a historical record of transactions that is visible to all users. If someone wishes to alter it, they will break the code that binds them together and alert all members.
In short, blockchain technology guarantees the decentralization of data, the authentication of transactions, and their recording and storage transparency. Excellent features that make it the basis for the development of solutions aimed at improving the customer experience.
Palpable examples of this innovation race can be seen in the D’Apps or decentralized applications that use blockchain platforms to direct the relationship between users. Likewise, BBVA’s recent experience with the medium-term implementation of the integration of financial services in the Trusple blockchain platform for foreign trade.
Hypernova is ready for the next step
Technology is advancing by leaps and bounds, but that is not an obstacle for us. On the contrary, it is what drives us every day to study, build and grow a little more. We are developers of solutions for your company. Our goal is to make your customer’s experience the best in the market. And we work to make it happen.