During the past month, South Korea and China have indicated they may begin cracking down on digital currency trading. This information resulted in the prices of Bitcoin decreasing from the peak of almost $20,000 for each coin to approximately $12,000. This has led many people to believe cryptocurrency is not a sure thing, while others interpreted the decrease as a rough week for bitcoin. As an expert in the field of technology, Mark Polelle has some interesting insights.
The blockchain is the system used to encrypt and record blocks of digital transactions, and the potential of each transaction. The system has been designed to enable an individual who was part of the transaction to use the chain to trace the transaction directly back to the source. The idea is the record is guaranteed to be reliable because of the encryption method. This means a central authority is not necessary to secure the transaction. This is the reason blockchain-based currencies including ethereum and bitcoin have so much appeal. This is especially true for the individuals who have specific reasons for avoiding any of the traditional transactions commonly used in banking.
The Upside and Downside of Cryptocurrency Exchanges
Despite the potential downsides, blockchain stock is still rising. There have been cryptocurrency exchanges that have been victimized by glitches, hacking and fraud including Cryptsy, Moolah, and Mt. Gox. Many others have not only survived, they are thriving. The conversion of cryptocurrency back into real money can have issues, and there is concern regarding the high amount of power necessary for cryptocurrency mining operations. If cryptocurrency continues to grow at the current rate, it is estimated by 2020 crypto mining will require so much energy it will exceed the total power consumption of the world.
There are certain counties in Washington dealing in hydropower because it is inexpensive including Douglas County, Grant County, and Chelan County. These counties have already begun to face a crunch in capacity. On the upside, people are making a lot of money writing and saving data. As the number of miners increases so does the potential profits. A lot of mining operations have centered in Moses Lake because the power is cheaper than anywhere else in the nation. Cryptocurrency is really about technology, and one of the foremost experts in the field is Mark Polelle.
The Benefits of the Blockchain
People can continue debating the minuses and pluses of cryptocurrency, but this does not change the fact that blockchain stock is still rising. Blockchain technology is being used by numerous prominent businesses. The aerospace giant Boeing is currently using blockchain so their supply chain can be documented. Airplane manufacturing involves bringing together thousands of different parts. Boeing is additionally attempting to patent an application for blockchain designed to counter GPS spoofing. This is the technique used to gain entrance into the navigational system of an airplane by hackers.
IBM and Maersk are working together on a blockchain-based system so shipping containers can be accurately tracked as they make their way around the globe. Another blockchain registry has been created by Everledger so the authenticity and origin of luxury goods including diamonds can be verified. IBM, Walmart, and numerous additional partners have teamed up for blockchain projects to track international food shipments including Mexican mangoes and Chinese pork. As the goods continue to flow, the supply chains add another block. This shows the people involved with the shipping of goods what has already happened. The blockchain is a way to effectively track goods without any one individual having to shoulder the full responsibility.
The Future of Blockchain
Many people are wondering what direction blockchain will take in the future. The blockchain is already capable of creating smart contracts, so when specific conditions digitally coded are met, the terms of the agreement are executed automatically. The predictions are $1 billion will be derived from the traditional banking industry by 2021 because of blockchain-based cryptocurrencies. As the technology continues to evolve, blockchain may secure credit scores and medical records in the future. Follow My Vote is a venture designed to use blockchain based security to secure the process of voting. The platform is already being worked on by experts in the field. The voting process continues to become more and more complicated, but with blockchain voting, the voters would not even have to leave their homes to cast their votes. The theory is blockchain will completely change the people in the White House. The fact remains, as long as blockchain technology continues to be effective, and the stock continues to rise, blockchain is here to stay.