What is cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies make it easier and hassle free for fund transaction between two parties.
What is Blockchain Technology?
The Blockchain is the underlying technology that originated in the form of a public ledger to keep a track of all cryptocurrency transactions. Blockchain technology is a system where electronic transaction-processing and record-keeping system. It is a distributed database that uses Bitcoin protocol to keep a record and maintain all the transactions that occur in real-time.
Why Blockchain technology is an option for investment
Blockchain technology is on the increase especially as financial institutions and banks are adopting this technology to facilitate transactions. Various market research have been conducted by different and independent bodies as to ascertain the use of blockchain technology.
IBM predicted according to a report released in 2016 that 15 percent of banks will be using the technology by 2017. About 66 percent of banks by 2020 will be using the blockchain technology in commercial production. Also, according to Grand View Research, Inc., the global blockchain market is expected to reach USD 7.74 billion by 2024.
The efficiency of the technology has improved and the transaction processes and security have improved recently after the keying into the technology by financial institutions and important technology bodies.
The technology will be worth investing in as the market is envisaged to grow in the future due to numerous benefits associated with the system. Some of these incentives behind its rapid growth include: reduction of rates of errors, faster transaction, minimize duplicate record bookkeeping and circumvents requirements by a financial institution to validate transactions. It offers security, internal and external cost savings, and transparency. These benefits have been attracting huge investors in the sector which is consequently leading to its expansion and growth.
There you have it! The above are a couple of things you need to know about Cryptocurrency and Blockchain Technology. With these factors and the quick growth rate of the technology, investing in blockchain technology is highly guaranteed to yield bountiful dividends.