Cryptocurrencies and the blockchain | A look at the financial market of the future

Since the introduction of the first cryptocurrency Bitcoin, the blockchain has established itself and is a solid fixture on the alternative financial market. Initially viewed with skepticism, this technology today already enjoys more trust than conventional banks and finance in today’s structure. Nevertheless, the technology in its full functional and operational diversity has not yet reached the majority of the public. To understand the importance of this innovation, the individual must know the concept behind the technology and know that the blockchain is interesting not only for buying and trading cryptocurrencies, but for all areas of the economy. In today’s best-known application – the transfer of cryptocurrencies – this technology only covers merely one single area. But the blockchain is much more than this and will revolutionize the economy of the future in many areas.

Efficiency and tamper protection through transparency and automation

Digitization is progressing continuously, data volumes are reaching indescribable proportions and manual processing is already posing the greatest challenges today. In view of these and other facts, it is clear that a forward-looking economy needs a new solution. The solution has already been developed and is used extensively and with all functions in numerous countries. Only Germany is still struggling in this area and could lose its competitive edge if we don’t start rethinking now. Cross-border and without a central storage location, the blockchain is a technology that enables more security in data traffic and is characterized by a seamless recording of all processes. This in turn means that the stored data is forgery-proof and protected from external manipulation. Each new entry of data is seamlessly connected to the blocks already stored and provides a comprehensive overall picture. Since central offices, such as processors at conventional banks, are becoming redundant with regard to the blockchain, the concept has not yet established itself as broadly as possible. Rather, the blockchain is currently the focus of attention as a technology of the second financial market and benefits from the growing interest. In addition to the use for trading and payment transactions with cryptocurrencies, the interest of the economy is directed to another property of the blockchain, the automated storage and administration of data that is not linked to servers.

Startups and medium-sized companies in particular are open to new ideas

Some large banks and economic monopolists, but even more medium-sized and small entrepreneurs have discovered and developed the blockchain for themselves. A complete, overarching acceptance on the part of politicians is therefore long overdue and should take place without further delay. Industry 4.0 with AI, blockchain technology and data analysis has already left its position in the starting blocks and is approaching us with giant strides. While some renowned companies still rely on the tried and tested and are rather skeptical about new technologies, the blockchain is already an integral part of the management of young and dynamic start-ups. The advantages are clear, versatile and already visible in the present. The fact that the blockchain will replace a large part of central servers in the future and that decentralization will lead to forgery-proof data volumes in large numbers is already evident today