The design of the blockchain technology marks a new era for the modern finance world, because there wasn’t any innovation in the past that operated independently from the institutions around the world. The main purpose of the blockchain network, at the time, was the development of Bitcoin – a first decentralized virtual currency, based on a distributed, peer-to-peer-based network.
Although back in 2009, there were many sceptics with the rise of so called ‘digital currencies’ that isn’t the case today. Everyone and their mother are aware of Bitcoin and other major cryptocurrencies. Over the years, Bitcoin generated a lot of hype around its bull and bust cycles, that promoted other developers to jump on the crypto bandwagon with their own innovative virtual currencies.
As a result, today, we are looking at a completely decentralized crypto market that features over 22,000 cryptocurrencies and a total market value of around $1 trillion.
It’s safe to say that Bitcoin revolution ionized our modern society, and we are yet to see how BTC and other cryptocurrencies will be Intergrated in our lives in the future. Beyond, the usage of crypto for money transfers, there are also other modern applications. This article will provide an in-depth overview of modern applications of both Bitcoin and crypto.
What is Blockchain Technology
Blockchain technology, in simple terms, is regarded as fully decentralized and distributed database that provided an innovative way of data storage and encryption because it was a first database of its kind that relied on hundreds of nodes (computer systems) around the world, then being based and controlled by a single entity.
The attributes of the blockchain network are the main reason why cryptocurrencies, and of course Bitcoin are popular today. The blockchain network functions as a system without the assistance of institutional intermediaries, such as governments or financial institutions. Instead, it relies for its security and operations on the proof-of-work system ( different cryptocurrencies might have other alternatives) that is based on the thousands of miners who operate on computer systems across the world to process and validate Bitcoin transactions.
In other words, the blockchain network is a way to store and exchange data across a group of interconnected computer systems, but no node has the power to change the records, alter the data, or take power as an entity over the network.
Moreover, the blockchain network utilizes total transparency in order to reduce any potential errors, anonymity that protects the personal details of the users, and finally, its decentralized, peer-to-peer blockchain network allows for minimal transaction fees and short processing time. On top of that, each block of transactions is linked to the previous via cryptography, ensuring the security of the transfer of data and money.
As such, it isn’t hard to see that most cryptocurrencies and Bitcoin are primarily used for transferring money online. They represent a solid and secure alterative, with some perks that aren’t necessary available with other fiat currencies.
Crypto in the Business Sector
The popularity of Bitcoin slowly but surely has made its way in the business sector and it’s latest bull cycle only propelled further the popularity of BTC and crypto payments. Due to the advantages of secure BTC and crypto transactions, many businesses decided to accept crypto payments. It represents another way for them to connect with an audience of crypto uses that want to use crypto and pruchase good and services.
So, actually, the second application of crypto and BTC is toward online and offline purchases. There is a growing number of brands, even small brick-and-mortar stores that accept crypto payments. Some of the popular businesses are Hoem Depot, PayPal, OkCupid, Venmo, AT&T, Burger King, Twitch, and many others.
Another popular example of the rapid adoption of crypto are the online casino casinos. Casino sites were quick to adapt to the latest trends and decided to accept crypto payments. Even though, you won’t find every single casino on the market to offer these options, an increasing number of platforms do.
Online casinos feature a vast collection of casino games, from challenging ones like blackjack, to slots, and other casino games that are easy to learn how to play online. The main advantage from being able to play any casino game on the go, is to use a payment method of your choice including crypto.
Bitcoin in Governments and the Public Sector
Although, we can’t definitely say that other cryptocurrencies are also following this path, Bitcoin as one of the largest and best-known cryptocurrencies has been adopted by some governments around the world.
Namely, In June 2021, El Salvador became the first nation to adopt Bitcoin as legal tender. Additionally, BTC is accepted in Argentina as payment for transit fares. Other countries like Canada and USA is recognized as commodity and taxed appropriately. It’s also worth noting that around 8% of Bitcoin reserves are owned by governments and corporations across the world. Otherwise, btoci and other cryptocurrencies would be successful in enhancing the transparency in public sectors, reducing errors, and corruption.