Never has been there such exciting times for the crypto-enthusiasts as it is today. The world is buzzing around with new blockchain and crypto technologies being launched. And if you want to stay ahead of the curve, then you’ve come to the right blog.
In this article, we’ll be covering different crypto-technologies and their application in the real world. So without wasting any more time, let’s get started.
Cryptocurrencies are digital money that is secured with the help of a cryptographic algorithm. In simpler terms, cryptocurrencies are nothing but entries into a database. Let us explore the different applications of cryptocurrencies:
- Medium of Exchange
What good is a currency if you can’t exchange it for goods or services? So the main application that these cryptocurrencies serve is as a medium of exchange – a peer to peer (person to person) electronic cash payment system. All the transactions of these cryptocurrencies are recorded on a blockchain.
Bitcoin, that revolutionized the digital currency world is one of the most popular and exchangeable cryptocurrency as of now. Some of the other cryptocurrencies that are specifically designed to serve as a medium of exchange are – Dash, Monero, Litecoin, Dogecoin, etc.
- Means of Network Payment
Some of the cryptocurrencies that came after Bitcoin ventured into exploring other applications of the blockchain technology besides just being a peer to peer electronic cash system.
The general idea is, using the blockchain technology to have things transferred or running in the network by incentivizing the network with tokens.
For example – If you are a developer and you want to create a decentralized application, you can use a blockchain based decentralized platform like Ethereum to run your decentralized application and pay the platform for services and transaction fees on the network with the cryptocurrency of that platform.
This allows the developers to directly use a decentralized blockchain platform for creating smart contracts and decentralized apps (Dapps) without creating a framework from scratch to run them.
Decentralized Network Storage (CryptoStorage)
Cryptostorage is a decentralized model of network storage that uses blockchain technology to store data on multiple computers (nodes).
The need for a decentralized data storage arose from the security threats that come with storing data in a central location. The Verizon breach, in which the customers’ name, phone number and PIN associated with the account was accessed, is a classic example of the threats that storing data in a central location is susceptible to.
Even cloud-based databases are highly centralized which makes them susceptible to hacker attacks.
Sia is one of the most promising players in the cryptostorage sphere. It is a decentralized, encrypted, peer to peer cloud storage platform that encrypts the data and chops it into bits before storing these bits to a bunch of different hosts. When the data needs to be accessed, these bits are recompiled and presented to the user.
Siacoin is the cryptocurrency that fuels the Sia Network. Sia allows anyone to rent extra space on their PC to Sia decentralized network and get paid in SiaCoins. And anyone who wants to store their data on Sia Network needs to pay the host via SiaCoins.
CryptoComputing (Decentralized Supercomputing)
CryptoComputing or on-demand decentralized supercomputing is a distributed network of computers managed by blockchain and smart contracts where anyone with a computer can borrow or share their computing power by paying or receiving the native cryptocurrency of the network.
The peer to peer nature of the blockchain and distributed ledgers will also help in avoiding bottlenecks round-trips to the cloud servers by moving computation closer where the data is being generated.
Dapps or Decentralized application is a very new concept and it doesn’t have any specific definition.
As per the CoinSutra website, Dapps are “a new breed of applications is being discussed across the world. These types of applications are not owned by anyone, can’t be shut down, and cannot have downtime.”
Dapps are decentralized, and therefore they do not have a single point of failure.
Ethereum has created a programming language that allows developers to create their own Dapps on Ethereum Platform. You can consider Ethereum like a decentralized app store where anyone can create and deploy their Dapps which unlike normal apps (like Uber) doesn’t need any third-party to function and thus they connect the seekers and providers directly.
Ardor is another platform that allows users to create Dapps on their platform, and unlike Ethereum you do not need any coding experience to create Dapps on it because they have provided a simple drag and drop GUI for the development of its Dapps.
There is a lot of innovation that is going in the crypto-technology world and many applications are constantly being launched to solve real-world problems.
BitDegree, an online blockchain powered education platform has also launched its MVP version and it would be interesting to see how it progresses.
What do you think of the sudden rise of the cryptotechnologies? Let me know in the comments section below.