Many experts are marking cryptocurrencies because the only see the flaws instead of the potential of the digital currencies. Hence, when Kodak announced its own cryptocurrency and blockchain for photographer rights, a lot of people shook their heads. This game happens to Warren Buffett. Figures in the industry are not confident of the potential of cryptocurrencies in the future.
This is where they are wrong. Although there is a tech hype around cryptocurrencies, it is an integral part of the industry because this helps to market the tokens and get more people involved in the cryptocurrency space. In fact, much of the cryptocurrencies craze has been fed on speculation. On that front, Warren Buffett is correct. However, the big mistake is to assume speculation and the extent of the technology. Cryptocurrency and blockchain can offer a lot of businesses of all sizes new opportunities. This can mean better, faster and safer payment up to enforcing important contractual provisions.
For traders themselves, there was a time where they were not able to see the potential of having cryptocurrencies. Admittedly, digital currencies do have its own set of problems which mainly revolves around security problems despite the claims of absolute protection. This has resulted in the loss of millions of dollars.
However, the Kodak announcement was a good reason to understand the reasoning of businesses. In fact, investors have to understand the real use of blockchain and cryptocurrencies.
You can enforce the contract
One main problem that businesses face today is to ensure that everyone will meet the requirements of the contract, but having to head to court because of a dispute takes up a lot of resources. Even if you do win, all the hassle that you went throughcan be emotionally draining and should be avoided at all cost. Therefore, this is where blockchain can play an important role.
The technology can help to tie code execution and digital processes to the satisfaction of the specific conditions. For example, with Kodak, when you work in the realm of intangible assets in value, you may want to restrict the actions of others. Of course, there is no perfect solution to this, but software can help to pave the way towards a better future. For instance, it can alert you when a licensee crosses some forbidden lines or when people are using your assets illegally.
This is one of the aspects that can save you a lot of time and effort. In Kodak’s case, thematerial might self-report abuses to the rights holder, which can increase the alertness of the individual to bring up legal action but in other examples, the blockchain can help the withhold authorization to release goods from a third-party warehouse until payment has been cleared. There are many possibilities that blockchain can make happen, which includes increasing speed and simplify transaction clearance.
Cryptocurrencies are about payments
With the rise of cryptocurrencies, you will often hear words like Ponzi schemes being associated with the use of it. As Bitcoin value grows and so that many other cryptocurrencies, you may believe that the whole concept is a Ponzi scheme. People mind solutions to cryptology problems and someone declares them to be valuable, but until suddenly, they aren’t.
In this regard, you can easily think of cryptocurrencies as closed and controlled payment can events which are run by third parties like vendors. Kodak plans to do exactly that. The rights holder can only release the use of their works once the client had peed in the Kodak cryptocurrency. However, it is still unsure whether Kodak will allow speculation on its cryptocurrency.
With that in mind, you can base a payment system on the existing currency like the US dollar as some already are. A company usually maintains a payment network and referee the receipt and payment of actual money. The cryptocurrency will function as a token which acknowledges the dollar transfer as a currency in its own right. The right holder will be able to withdraw the money that has been held in the escrow.
More problems to be solved
Admittedly, blockchain in cryptocurrencies is not perfect. No matter how practically unbreakable cryptography is, human engineering and programming errors and leave blockchain is vulnerable to plundering. Therefore, trying to establish independent values for cryptocurrencies is betting on a commodity that can lose of value in an instant.
With all the hype around cryptocurrency, it is important that more people to keep harsh as that when they are entering the cryptocurrency space. More importantly, do your own research on a certain currency that you want to invest in. Certainly, everyone will have their own opinions about cryptocurrencies. If there are many supporters, they are going to be as much or even more people who oppose the creation of cryptocurrencies. Whatever the verdict may be on cryptocurrencies, it has a real potential to transform how our economies will work.
If done carefully and correctly, blockchain selling cryptocurrencies can be important tools in the global business. Today, there are many start-ups which are based on blockchain that wants to explore the capabilities of this technology, which can be used commercially. If you are already in the cryptocurrency industry, you probably get a lot of questions about the nature of the market itself.
Understandably, you might also get people opposing your actions. Warren Buffett’s predictions are quite strong, and many people may agree or disagree with it. In this article, we have discussed how much potential blockchain cryptocurrencies have in general. By giving it space to develop, we are allowing this technology to reach its maximum potential. Hence, 2018 will be an interesting year because we will see the movement of cryptocurrencies more closely. More importantly, more people will be getting into the cryptocurrency is space. In a years time, a lot of things can happen. Therefore, let’s keep an eye out for the cryptocurrency market and see where it is headed.