Blockchain is essentially a virtual chain formed by multiple blocks of information, each having a unique identity called the hash. This is a non-conventional mode of ledger or decentralised digital bookkeeping. The authority of information is not retained by any centralised agency but distributed amongst all the stakeholders, agents, or writers of a blockchain.
Blockchain helps to execute payment transfers following a smart contract, which has the consensus of most writers. Except for the first block in the chain, all blocks are recorded with the hash identifier of the previous block besides its own, along with the information contained in it.
Origin of Blockchain
Though the concept of blockchain dates back to the 1990s, it is in 2008 that Mr Satoshi Nakamoto gave it a concrete shape in his revolutionary article – “Bitcoin: A peer-to-peer electronic cash system”. This book refers to the concept of cryptocurrency by using the method of blockchain economics. Nowadays, the trade of cryptocurrency is completely based on the decentralised feature of blockchain technology.
In India, an aspirant may get introduced to a blockchain by transferring an amount of money (INRs) from his or her bank to some selected wallets like MobiKwik. The wallet converts the INRs into the desired cryptocurrency of your choice.
Main Features of Blockchain
Among the various other features of blockchain, the two most important ones are as follows -
Correctness and security
Correctness and security are the two most important features of any ledger. Blockchain ticks both boxes. Since all the blocks (except the initial or genesis block) have unique identity hash numbers of self and the previous block. Any attempt to unscrupulously change the data in any block will be unsuccessful since the following blocks will show an error statement, due-to disturbance in their unique identity.
However, if felt appropriate by most of the writers upon a common consensus, the amendment to the data in specific blocks may be performed. The writers in blockchain remain anonymous with a public identification number but no name.
Blockchain offers much more than just a decentralised digital ledger. It can perform digital payment or transaction processes based on a coded smart contract where the contract illustrates the detailed terms of payment disbursement through cryptocurrency. The credit occurs as and when the conditions are fulfilled. There are provisions to abort payments as well when the conditions are observed unfulfilled upon further scrutiny.
Cryptocurrency - An Application of Blockchain
It is a non-physical or digital currency in the form of a sequence of encrypted data, organised and managed by a non-conventional, de-centralised mode of ledger system known as the blockchain. A huge number of agents, writers and miners can participate in the blockchain system and the sale, purchase and transfer of cryptos are the ultimate objectives.
The selection of cryptocurrency is always a crucial decision. The value growth of a specific cryptocurrency does not depend on Government policies or the Reserve Bank of any nation. It solely depends on the number of active participants and the demand and supply of the said currency.
The Cryptocurrency Outlook in 2023
The economy of cryptocurrency is not nation-specific; since the blockchains of specific crypto are spread across the length and breadth of the globe. This market has experienced the trajectory of a roller coaster and thus, has experienced immense volatility. However, it may be noted that in spite of such turmoil, growth has happened and people have shown their confidence in this market.
Based on the performance of the last few years, researchers have predicted that 2023 is supposed to be a good year for the crypto market. Many global organisations like Microsoft, Accenture, IBM, and Samsung have already adopted blockchain technology and hence the need for skilled professionals in this segment shall grow. This, in turn, will boost the growth of the crypto market, as well.
The steady growth of crypto will give rise to the boom of decentralised finance and decentralised autonomous organisations. Decentralised finance will rearrange financial products in a manner that the need for middlemen is eliminated. Decentralised autonomous bodies may be recognised as a new internet community with innovation and out-of-the-box thought processes and solution provisions.
Most meme coins are likely to disappear. These are new and lesser-known coins which have achieved abnormal growth trajectories in relatively smaller times.
Future of Bitcoin in 2023
It is the most widely used cryptocurrency since its first introduction in 2009. The performance of Bitcoin was acid-tested when the Silicon Valley Bank collapsed along with two other cryptocurrency lenders, namely, Silvergate Capital and Signature Bank. During such times, it was observed that bitcoin performed reasonably well instead of the common apprehension that the asset would certainly fail to deliver, given the economic turmoil. So, people have their faith intact in this currency even in 2023.
If we track the historic data regarding the value of Bitcoin every January starting right from 2014, we will find that whenever the value of Bitcoin has collapsed substantially, it has not only recovered in the third year but has crossed all previous benchmarks. Considering this growth trajectory, the collapse in the value of Bitcoin in January 2023 is a positive symbol for investors and an opportunity for them to invest, as well.
Other Cryptocurrencies Worth Buying in 2023
Besides Bitcoin, the cryptocurrencies which have the potential for reasonably good growth in 2023 are as follows -
Fintech is the application of information or digital technology in the world of financial transactions. Blockchain technology is another useful product of Fintech. To take a lead in today’s modern and innovative career path, a finance graduate should invariably take up an MBA in Fintech.
The MBA in Fintech programme by Imarticus will enable the prospective candidate to have massive growth right at the beginning of their career. This is a full-time on-campus course with a duration of 2 years.
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