The advent of the IT revolution has transformed the way we perceived the world. It has been instrumental in bringing up a paradigm shift in the economy, medical science, defense systems, communication, space technology, and security. The creation of Blockchain and digital currency like Bitcoin is a few offshoots of the IT impact.

Blockchain has also emerged as a new catalyst that can impact our lives in various ways. In addition, it has revolutionized the banking system, business operations, health system, national security, and cybersecurity. The blockchain revolution has just begun.

What is Blockchain Technology?

A blockchain is fundamentally a digital ledger of transactions that is replicated and circulated across the whole network of computer systems on the blockchain. Blockchain is a type of DLT in which transactions are recorded with an irreversible cryptographic mark known as a hash.

Blockchain was created by a person or maybe a group who was employed under the pseudo name “Satoshi Nakamoto”. It was initially formulated for the most popular digital currency i.e. Bitcoin. However, technocrats found other avenues in using blockchain for various benefits. Blockchain has the capabilities to develop to be the foundation of the worldwide record-keeping systems.

Advantages of blockchain technology

Blockchain is a fairly recent technology that is evolving in many forms and formats. The application of bitcoin will go far beyond digital currencies like bitcoin.

It can bring more transparency and justness to systems. It is also helping companies to save money and time. Selected applications of blockchain are outlines below.

Ten major application of Blockchain

• Personal identity security
• Real-time IoT operating systems
• Supply chain and logistics monitoring
• Cross-border payments
• Voting mechanism
• Anti-money laundering tracking system
• Cryptocurrency exchange
• Secure sharing of medical data
• The real estate processing platform
• Advertising insights

Advantages of Blockchain Technology

Blockchain technology has a bouquet of advantages which are given below.

• Transparency

Blockchain stores data in a transparent way. It stores data on a distributed network. The member shares the same data on the blockchain network instead of individual copies of the matching data which cannot be updated with the agreement from the other participants. In other words, it is next to impossible to modify any information in the blocks where their data is existing.

• Security & Privacy

It is a decentralized system where there is no central authority that has absolute control over data. It implies that the third party can’t tamper with the user data at any point in time.

• Efficiency & Speed

The entire process and all the transactions are taken care of by the members involved. Promptness in processing is ensured as there is no third party involved in the dealings. It is the easiest and quickest way of sharing data or sending money.

• Reduction

It drastically reduces the processing cost as it is fast and fewer stakeholders are involved. There is no third party charges/fees, transaction fees, or any other hidden surcharge. Above all, there is no necessity for maintenance as it lacks any central server.

Conclusion

Undoubtedly blockchain has multiple applications. It has a robust foundation with a decentralized functioning system. Without a third party involvement, the members enjoy the benefits without paying to the intermediaries. The process is fast, efficient, and transparent. In conclusion, Blockchain has a bright future which has just begun!

PayPal has put its steps in the cryptocurrency market recently. The money online platform has announced that PayPal account holders now would be able to buy and sell Bitcoin and many other virtual currencies. PayPal Holdings, Inc. is a US-based company operating a global online payment system. It offers financial services like online money transfers, digital payment service, P2P payments, and debit card accounts. It has established itself as an electronic alternative to traditional money transactions.

PayPal has secured the first provisional cryptocurrency license from the New York State Department of Financial Services. To offer this service PayPal has partnered with Paxos Trust Company. It is predicted that by the end of 2021, the retail payments done with Bitcoin, Litecoin, and Ethereum by PayPal users could seemingly double and attain USD 50 billion marks. According to CEO Dan Schulman, the expectation for this development is to help nurture the global acceptance of virtual coins and to get ready for the firm for the upcoming digital currencies.

A Boost to Cryptocurrency

Industry experts believe that the entry of PayPal in the cryptocurrency market would boost it. PayPal’s entry implies that the 26 million PayPal account holders can now make cryptocurrency buying using the PayPal platform. After this announcement by Paypal, the market leaped by almost 15% in the BTC price. In addition to that, the other cryptocurrencies supported by PayPal also experienced an average weekly return of 10%-15%.

For the US market, PayPal is scheduling to bringing up buying options for the investors over the next few weeks, and within early 2021 it has a plan to fully rollout. PayPal has is planning to add a bunch of cryptocurrencies to its portfolio. The digital currencies that are waiting in rows are Litecoin, Ethereum, and Bitcoin Cash. The company confirms customers can now store all these digital currencies “directly within the PayPal digital wallet”.

PayPal is also aiming to amplify customer awareness around cryptocurrency. They believe this exercise would promote the adoption of crypto among users: They are planning to supply educational content regarding the cryptocurrency ecosystem.

Downsides of this PayPal Crypto association

However, it is revealed that PayPal wouldn’t allow its account holders to transfer their cryptocurrency into or out of PayPal. Secondly, they would not have any control of the private keys, a long string of numbers and letters that allow holders to move their digital assets. PayPal plays a kind of dictatorship on what users can do or not do with their cryptocurrencies.

PayPal Competitors

Considering ample opportunities and possibilities that cryptocurrency offer more numbers of big players are gradually embracing digital coins. Before the entry of Paypal, the Robinhood trading app has allowed crypto since 2018. Similarly, Square users have been trading in crypto for quite some time. After the announcement of PayPal’s entry companies like Visa and Ternio has also announced to team up to help crypto companies.

Bottom-line

Cryptocurrency, although consider as the “future currency” of the world, there are many who are still skeptical about virtual currency. But gradually crypto is getting more acceptance from big horses of the financial world. By the entry of PayPal in the fray, cryptocurrency is undoubtedly going to gain a lot in times to come.

Cryptocurrency will have an outstanding role in the future, but it will take more time than generally believed to be. Blockchain reduces digital transaction costs to nearly zero. This is the prime reason why it has a very undeniable role in business. Through smart contracts, the costs incurred for audit, legal, and compliance could be lowered to nearly zero. This boosts business situations and transactions. Cryptocurrency has, no doubt, become very popular among investors and financial institutions. But there would be a lot of changes in the future to make it more acceptable and legit.

The Future of Cryptocurrency

According to some economic analysts, Crypto has a very bright and decisive future. But the shape and importance will be changed as institutional money has entered the market. It is expected that crypto will be floated on the Nasdaq. If it happens, the reliability of Crypto will be furthered as a substitute for traditional currencies. To make it a reality Crypto would require a verified exchange-traded fund or ETF to be in place.  An ETF would certainly make it convenient for people to invest in Bitcoin.

The futuristic viewpoint for bitcoin is a debatable subject. However, the so-called crypto-evangelists are propagating for a brighter future for Crypto. The experts advocate that the irresistible feeling among crypto-evangelists suggests that the market capitalization of cryptocurrencies could grow to $5-10 trillion over the next five years.

Rising Inspection

The advantages could be a base for many misadventures. The decentralized feature of Bitcoin has also made it susceptible to a range of unwarranted illegal activities that include money laundering smuggling, drug peddling, and weapons procurement. In the USA, these loopholes and misuses have caught the attention of authoritative regulatory and other government agencies. The agencies that are seriously monitoring the state of Crypto are the SEC, the Financial Crimes Enforcement Network (FinCEN), the Department of Homeland Security (DHS), and the FBI.

It is to be noted here that way back in 2013 FinCEN had issued a set of laws that made it clear that the virtual exchanges and administrators should be brought within the purview of government regulation as they are operating as money service businesses. The regulating authorities have displayed their biting teeth in this regard. In 2013 itself the Department of Homeland Security made an account of Mt. Gox (the largest Bitcoin exchange) blocked on the basis of the alleged breaking of anti-money laundering laws. Again, in the month of August 2013, 22 emerging payment companies were served with subpoenas by New York’s Department of Financial Services. Most of these companies were handling Bitcoin. The authority questioned regarding their processes and required actions to thwart money laundering, warranty consumer safeguarding, and showcasing the high level of transparency.

The Prospect of Crypto

Irrespective of related discrepancies and misuses of Cryptocurrency, there lies a better future for it. Experts believe that the problems and issues faced by Crypto would be resolved at the right time. Now, it is possible that your digital destiny could be simply wiped out by a computer crash. It is also feasible that hackers could ransack your virtual vault. But it is expected that these issues and problems could be dealt with properly by introducing state-of-the-art technologies.

Although the number of traders who acknowledge cryptocurrencies has progressively augmented, their number is low. Cryptocurrencies need to be accepted by consumers in a large way so that it gains popularity and get used in various ways.

But it is hindered for their apparent complications in comparison to traditional currencies which might discourage a large number of people, excluding those who are skilled with better technological know-how. To become a part and parcel of the mainstream financial system, Cryptocurrency will have to fulfill an array of legalities and criteria.

The bottom line

Cryptocurrency is still evolving and may take a few more years to be in the right shape so that it could be treated as an alternative to conventional currencies. Experts are very optimistic about the bright future but believe that technological intervention is what is required the most now. Through innovative technologies, the problems and issues related to Crypto could be addressed. Finally, one thing is clear, Crypto is going to stay and prosper in the coming years.

What are P2P Cryptocurrency Exchanges?

P2P is a decentralized exchange of cryptocurrency directly between users. All logistics are carried out by special software, so no third parties are required. On the contrary, ordinary exchangers are companies that act as intermediaries between users, receiving remuneration for this.

How to trade through P2P?

The software automatically connects users with the same terms of sale and purchase of currencies. Let’s start with a description of the work of ordinary exchangers. To sell bitcoins, you need to specify their quantity and price, place the so-called. order.

To get rid of the need for a third party, P2P finds people who have placed matching orders. P2P connects the seller and the buyer, which allows them to make a deal without difficulty. Of course, arbitrators may be required, but in standard conditions, third parties are not involved and everything happens decentralized.

What are the advantages of P2P?

The absence of a weak link, on which exchange efficiency depends, is the main advantage of decentralization. Of course, a single center ensures the speed of transfers, but any vulnerability threatens the whole system. Resistance to state control. The staff of ordinary exchangers is subject to pressure from the state, which seeks to introduce favorable rules for the cryptocurrency.

On the other hand, P2P is almost invulnerable to government intervention, since there is no central organization that the state could regulate. This advantage led to an increase in the popularity of Local Bitcoins, one of the largest P2P exchangers, just after the actions of the Bank of China.

What are the disadvantages?

For a long time on transactions, a less intuitive process, lower liquidity does not allow P2P to be superior to conventional exchangers in all respects.

Most of the disadvantages of P2P occur due to the novelty of the technology. So, Bitsquare, one of the oldest P2P, has existed for only 3 years, including the development period. Since P2P is focused on a small group of enthusiasts, there was no need to attract new users and improve service. This results in small volumes of transactions.

For a long time waiting, most likely, it will not be possible to overcome because bitcoin and fiat currency transfers must pass. Together with reduced liquidity, this means that P2P is not so in demand by professional traders who need fast deals. However, the benefits that P2P offers can be beneficial for some people.

How to prevent fraud?

P2P exchangers use various protection mechanisms. Usually, they use public reputation arbitrators, mandatory buffer contributions for the duration of the transaction, and face-to-face meetings.

Bitcoin translation cannot be cancelled, but fiat currency translation is possible. Fraudsters get bitcoins, and then cancel the transfer, say, dollars. To prevent this, they use mandatory Bitcoin contributions, which participants in the transaction must make before they start to negotiate. If all goes well, the fees will be refunded.