It’s always hard to predict how revolutionary a particular technology will be. Today, we are accustomed to things that, when they first appeared in our world, nobody could imagine they would change our lives the way they did.
Blockchain: a short history
If we think about smartphones, nobody could imagine how much they would have been part of our daily-life. In today’s world, one needs just a smartphone to build a new business. Thanks to technology we can work anywhere, we can travel faster, enjoy social interactions while being miles away from one another, and so on.
The era in which we live is dominated by digital technologies. What’s more, another revolution has already begun to change our world. This revolution is represented by blockchain, a distributed ledger made by a list of ordered records chained together, called “blocks.”
Why is blockchain revolutionary?
Why do we consider blockchain revolutionary? Because, in just 10 years, this technology has reshaped the business world and let us discover new opportunities in any kind of sector. Let’s dive into the history of blockchain to know exactly why this network will have the greatest impact on the future of the world economy.
First there was Bitcoin, the first cryptocurrency, created in 2009 by Satoshi Nakamoto. At the moment of writing, its market cap hovers around $611 billion dollars, and millions of people all around the world use it for payments. Shortly after Bitcoin’s birth, there was blockchain. People soon realized that the underlying technology that made Bitcoin work could be separated from the currency and used for virtually anything.
In order to validate transactions, the blockchain network uses a consensus method called “proof of work”. A group of people, called “miners”, solve complex cryptographical problems to secure the transactions and add new blocks to the chain. In exchange for their work they earn cryptocurrencies.
For this reason, the major financial institutions in the world decided to invest millions of dollar on blockchain research.
A crucial step for the development of blockchain is the creation of a “smart contract”. The first platform to embody was Ethereum. These contracts allowed financial instruments like loans or bonds to be represented on the blockchain network.
The introduction of Proof of Stake
Another turning point for blockchain technology was the introduction of a new consensus method called “proof of stake.” The new system doesn’t need miners to verify the transactions. It’s just , for a similar or even higher degree of security. Proof-of-stake systems are expected to go live later this year. Then we had blockchain scaling. A scaled blockchain accelerates the process, without sacrificing security. It tracks the quantity of computers needed to validate each transaction and splits up the work.
In the future
Although we know for sure that blockchain will revolutionize the world as it’s already doing, making exact predictions is a bit hard. We must not understate its potential. More people will become crypto enthusiasts and hundreds of companies will adopt blockchain technology to start their projects. Several new platforms and Super Apps will be created, in order to facilitate the growth of cryptocurrencies on the blockchain systems. LYOPAY is a Super App whose purpose is exactly the same! Our ecosystem integrates many day-to-day services, such as payments, e-commerce, travel booking, and many more.
The future is around the corner. Are you ready to be a part of it?