Crypto-currency and Blockchain Technology – Forcing the World Towards Cashless Economy
Emerging new technologies in the digital world are set to change the way consumers and businesses interact in the cashless financial ecosphere. The changing dynamics of businesses and consumer lifestyle along with technology advancements has led to the demand for virtual currencies/crypto-currency in the market.
The first digital currency – Bitcoin has been gaining popularity in the digital world as witnessed by the presence of more than 100 types of crypto-currencies and blockchain, that form the backbone crypto-currencies transactions. Namecoin, Dogecoin, Ripple, etc. are slowly gaining popularity in the market, but not as much as Bitcoin.
Crypto-currency entering the market
The first cryptocurrency – Bitcoin whitepaper was published in 2008 by Satoshi Nakamoto. At present Bitcoin acts as a key backbone for various types of crypto-currencies in the globe. Within 2–3 years of introduction of bitcoin, new crypto-currencies have started stepping in the market namely– Namecoin, Multicoin, Novacoin, Peercoin Ripple, Litecoin, etc.
[caption id="attachment_4913" align="aligncenter" width="683"] Few examples of Cryptocurrencies (Image source: Bitspec)[/caption]
In the current market scenario, crypto-currency and blockchain value chain players are coming up with new features and leveraging the benefits of digital currencies in building a cashless world. The add up of various types of crypto-currencies to the list is expected to continue.
Role of blockchain technology in the crypto-currency transaction
The blockchain technology works as a decentralized ledger, which maintains and stores every transaction and ensures that each transaction is valid and unique, and creates the trust among the distributed users in the networks. It also removes third party (financial institutes) involvement in the transaction.
[caption id="attachment_4919" align="aligncenter" width="800"] How block chain works (Image source: Thomson Reuters)[/caption]
Employing blockchain removes the unwanted trait of infinite reproducibility from a digital asset. It ensures that each unit of digital cash spent is never repeated, solving the issue of double spending.
Why crypto-currency and blockchain technology – Here we go:
Following 10 points makes it evident why crypto-currency and blockchain is high on preference.
- Data (Customers, Business, etc.) is set to play a key role in any industry growth and maintaining the data has become crucial. In this space, the blockchain technology is expected to play a vital role
- Rising cyber security issues
- Free from paper-based records
- Consumers are looking for the best, easy and faster transaction services
- Support for micro-money transaction
- Hurdle free transaction/risk-free transaction
- Consumer and business are looking for less transaction cost and acceptable currencies across the world
- Reduce the time constraints
- Digitalization is set to change the world
- Rising online based business with mobile world
Complexity in Crypto-currency acceptance in the market
Even though global awareness on crypto-currencies shows moderate response right now, it is expected to grow in a couple of years. There is a stark difference in acceptance rate of digital coins among developed and developing countries. Lack of network infrastructure in developing countries is the the prime reason for it. These issue as per Infoholic Research, will not stay for long nor affect the growth of digital coin transaction.
In the coming years, the government rules and regulations might be implemented specific to crypto-currencies. But, consumers are trying and moving towards wallet apps to transfer their money easily with less transaction fees, which is also faster, secure and globally accepted. In this space, mobile based crypto-currency wallets are gaining demand in the market.
Crypto-currency and blockchain value chain players outlook
The crypto-currency and blockchain technology market holds bundle of business opportunities in the digital world. New players are entering the market and the number of vendors list is increasing every year. The merger and collaboration with big giants and enterprises, venture funding activities are expected to grow in this market. Especially, the small and medium enterprises and new start-ups are expected to play a key role in the market. Microsoft, IBM, etc. have started to offer various services/products specific to blockchain and crypto-currencies world. Overall, the crypto-currency and blockchain technology market is expected to grow and set to be a competitive market in the upcoming years.
What primary industry experts say?
The crypto-currency and blockchain technology market is expected to see a double-digit year-over-year growth in the upcoming years. Especially, developing countries are an untapped market and expect wider audience in this region.
“Sathvik Vishwanath, CEO, Co-Founder; Unocoin, (leading player in Crypto-Currency and Blockchain market) in an interview with Infoholic Research said,"The crypto currency and blockchain technology holds a great promise to future in moving towards cashless, borderless and trustless society. We have seen it grow by atleast 50% year on year and is expected to similarly grow to cover wider audience especially in developing countries like India."
Worldwide crypto-currency and blockchain technology market
According to Infoholic Research Worldwide Crypto-currency and Blockchain Technology market is expected to grow at a CAGR of 35.2% during the forecast period 2016–2022. The market is analyzed based on regions and verticals. Globally, crypto-currency acceptance is expected a definite increase in the upcoming years. And who knows, probably one day we will have a 100% cashless economy!
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