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Why blockchain technology is important in cryptocurrency?
Written by Davies on / Reading time: 4 minutes.
The world of cryptocurrencies: an economic and social phenomenon. But... what does blockchain technology really bring to virtual currencies? Both "blockchain" and "cryptocurrencies" are two of the most fashionable words in this new technological age in which we find ourselves.
The blockchain technology brings multiple benefits and not only to cryptocurrencies and the financial system, but also to other sectors. It is the basis that supports the structure of virtual currencies. It has great potential, which has boosted its great evolution. The future that experts augur for blockchain technology is quite distanced from failure, as there are high expectations placed upon it.
Sectors that can benefit from blockchain
The blockchain technology can be implemented in various sectors or areas, not just in the financial market. There is no single blockchain, but multiple blockchains. In addition, they can be public or private. In the first case, everyone can access and, in the second case, only the owner allows its access. Some of the sectors that also benefit from this great technology are:
- Logistics sector: The blockchain technology allows a thorough monitoring during the process that starts from the time a product is manufactured to the customer. That process is characterized by being long and costly, and blockchain technology reduces costs and provides control of the product.
- Technology sector: There are companies that already use digital identity (ID) as a form of identification. With this identity you can access, for example, applications or documents. This function is a major step, as it is not necessary to enter a username and password, which was a more cumbersome process.
- Political sector: Some countries have already used this system in internal elections of political parties. This is the case of the Danish Liberal Alliance party, which used blockchain in the party's internal elections in 2014. It facilitated the voter's anonymity and avoided any manipulation.
Advantages of using blockchain technology
Blockchain technology has been a major evolution in this new technological age. Why? Because, among other functions, it allows monetary exchanges with other countries. But it has not reached its maximum potential as it is always constantly evolving. Many companies have realized the importance of this technology and they have already implemented it in their strategies. Do you want to know some of those companies? Some of them use this technology and others have created their own cryptocurrency.
Blockchain technology provides, among others, the following advantages:
- Trust and security: Monetary transactions can be carried out reliably and securely, as well as irreversibly. Once you've done it, you can't undo the operation.
- There is no need for intermediaries to intervene: operations are carried out between two parties, i.e. two people. This avoids intermediaries, saving costs and time.
- Impossibility of forgery: At the time the transaction has been completed, the data that has been registered cannot be falsified or rectified, cancelled or deleted.
- Information under protection: Both personal data and transactions are stored appropriately. Where? In a history that this technology has had since its creation. With it, information is stored securely, providing greater trust in the user.
DAVIES: a cryptocurrency that benefits from blockchain technology
It is a virtual currency created a year and a half ago. It is an asset that has a quoted value that allows you to send assets from anywhere in the world. This fact makes the DAVIES cryptocurrency universal and this aspect is one of its main features. Apart from being universalizable, it also has other features:
- A Lyra2v2 algorithm: This is a high-tech algorithm.
- A supply of coins: There will be 100,000,000 coins circulating all over the world.
- One reward for each block: Currently, that reward consists of 50 coins. However, that amount will be reduced to half.
- It is modifiable: The fact that it is a relatively new virtual currency enables to make necessary modifications to optimize it. Such modifications will occur according to the cryptocurrency community.
Davies represents the "Industry 4.0" and seeks both efficiency and efficacy, as well as a wide range of possibilities, rights and functionalities to its users.
As you have read, blockchain technology brings multiple benefits to the financial system and other sectors. If you are not using this technology in your company yet, don't wait any longer. You will discover all its advantages and your business will keep evolving over time.