It all started with the birth of bitcoin, the best known and most valued cryptocurrency at the present time. It arrived in 2009 to end the central banks at the time of greater crisis of confidence in financial institutions. Eight years later, the continuity of the currency is uncertain but everyone agrees that the technology that has made it possible the blockchain – is here to stay.
“It was at the end of 2014 when we stopped talking about bitcoin and started talking about blockchain wallet app development. In 2015, start-ups set aside ideas on how to replace banking and began thinking about how to transform our technological infrastructures. In 2016 we started testing the concept to verify the usefulness of the technology, the pilots arrived in 2017 and in 2018 we could see the first real applications in production, ”he explains Julia Faura, head of R&D at Banco Santander.
Table of Contents
What Is Blockchain?
“A technology that uses cryptography and P2P data sharing,” says Leif Ferreira, one of those responsible for NWC10Lab, the first laboratory in Spain specialized in blockchain and bitcoin. It means “that the data is not centralized or stored on a single server, but that the registry is shared by all users of the network,” adds Ferreira. Hence, the name itself, which can literally be translated as a blockchain. It is this way of storing information that prevents the data recorded in the blocks from being altered or hacked.
“Being information shared among all users, if a part of the chain is destroyed, with a single node everything is replicated again,” explains Leif Ferreira. That gives us the main quality of this new technology and what makes it unique: “The reliability of the information stored on the network is what a revolution really entails with respect to all of the above. And with that reliability the trust that is generated in any type of transaction between two parties.
Trust is given by all those nodes that verify the information and this allows in practice to eliminate any intermediary in business relationships. With blockchain any type of economic transaction can be made between two pairs without any intermediary, ”he explains Antonio Calvo , director of the digital division of T-Systems Iberia, which adds: “Eliminating intermediaries saves costs on the final products and on top of that it is a safer and more reliable exchange because the records are never deleted. They are added, modified, but anyone can see the whole story. ”
Blockchain Technology Is Disrupting Traditional Modes Of Investment
Blockchain platforms such as Ethereum, Cardano, RippleNet, Monero, Dash, Litecoin, Stellar, Tron, etc. They have their own tokens on the platform that are rapidly emerging as alternative currencies.
Since the deployment of Bitcoin Blockchain in 2008 during the financial crisis, a large amount of negative perception surrounding the leader Crypto and other Altcoins has been paving the way for its adoption.
Consequently, a strong Crypto economy is maturing that is controlled by Crypto whales and retail merchants that trade with each other in Crypto exchanges as more and more virtual currencies are acquired. investment goals.
Crypts Are A Challenge For The Main Financial Products
In December 2018, Bitcoin rose to $ 20,075 at one point, while most other Cryptos like ETH also rose to unfathomable highs. However, a long period of a bearish career began in much of 2018 that sparked debate between investors and other financial experts about the real/intrinsic value of Cryptocurrencies.
However, in 2019, the cycle has changed and the whole year has been bullish since most of the Cryptos obtained around 100% of their lowest points at the end of 2018. In this regard, both retail and retail investors Institutional institutions, such as Goldman Sachs, are deepening Crypto’s enterprise mobility services to benefit from the great opportunities offered by the digital economy.
DLT Is Modernizing Real Estate Transactions
The real estate industry is the most sought after investment option for private equity funds. Investors have relied on these third-party companies under management so that fund managers increase their net wealth by directing their savings to properties with high net returns.
In the real estate area, blockchain app development technology can allow real estate developers to meet directly with investors to avoid fund managers and other investment firms. The platforms that DLT supports are trusted, since they are controlled by protocols such as proof of authority, proof of work and even proof of consent, in addition to the smart contracts that govern consensus on the platforms.
Blockchain Technology Is Reducing The Operating Cost For Businesses
Oliver Wyman, a global financial services company, estimates that IT operations cost businesses up to $ 150 billion a year, which is eventually transferred to consumers in the form of fees.
Blockchain technology can allow enterprise mobility development to bypass IT service providers and connect directly with their customers. This can reduce operating costs and make services less expensive for customers.
In addition, Blockchain technology is transparent since data is recorded in immutable records. Therefore, in case there are commercial charges that are transferred to consumers, all parties can clearly see these costs in a public ecosystem.
Distributed Networks Are Eliminating Fraud In The Investment Sector.
According to a Forbes report, distributed ledger technology systems store data in records that are protected in blocks that make up the entire blockchain. These contract records are immutable and proof of trade is verifiable and accessible in an ecosystem without permission.
This technology, therefore, can reduce fraud and other illegal activities that prevail in the secret and centralized investment sector. At this point, it is being addressed through compliance in which cryptocurrency investment platforms are strict in terms of compliance with KYC and AML.
Featured image source: Freepik