​WHAT IS
CRYPTOCURRENCY

Cryptocurrencies are a digital asset that started as a medium of exchanging value for people to buy goods and services without the need for an intermediary such as a bank. Over time, their functionality has expanded from the simple concept of transacting value between two parties without the need for a bank, to Bitcoin becoming a noteable, trusted and staple investment product held by influential individuals, fortune 500 companies and governments as a store of wealth, coining the term "Digital Gold".

Other disruptive use cases of cryptocurrencies include facilitating the digitization and decentralization of traditional industry sectors like finance, lending, logistics, identification management and law using self executing contracts (a.k.a Smart Contracts) and decentralized apps (DAPP's). While DAPP's and smart contracts are powerful and dynamic enough to replicate traditional financial services using cheaper, faster decentralized finance systems (DeFi), this technology is just in its infancy and is capable of much, much more. Only recently, this technology has taken the world by storm through revolutionizing how we claim ownership of digital assets such as art, collectables and even physical items like land and realestate using Non-Fungible Tokens (NFT's), read on to learn more.

The technology enabling this new era of digital economics is called the Blockchain. The blockchain acts much like a bank ledger for the coin (currency) or token connected to it; only it isn't administered by a single centralized institution such as a bank. Most cryptocurrencies have their own blockchains, however, some piggyback off existing blockchains such as Ethereum's, a prominent alternative coin (alt-coin) to the widely known Bitcoin. Each blockchain holds all transactions for its associated coin or token in perpetuity via cryptographically chain-linked blocks and is distributed across a large number of computers world-wide, hence the name Blockchain and its "decentralized" moniker.

Most blockchains are decentralized and autonomously self-managed using algorithmic validation mechanisms. Simply put, most cryptocurrencies (and their blockchains) are not owned by a single entity, but instead governed by a vast community (or network) of invested parties. Inherently, this decentralized governance model makes blockchains nearly impossible to tamper with, counterfeit or double-spend.

Too much geek speak? Check out this simple graphic to better understand how blockchain works.

Bitcoin is the first cryptocurrency, and blockchain ever to exist; however, it is only one application of blockchain technology in a world of thousands, similar to how email is one application of the internet.

Bitcoin is a peer-to-peer electronic cash system that allows people to send and receive money worldwide without a third-party intermediary such as a bank or government. Bitcoin is often criticized for having limited use cases outside of being a digital store of wealth, or "digital gold". Yet, to this day, it remains the most popular, and valuable cryptocurrency by a significant margin.

Much like the US dollar is to the global economy, Bitcoin's first mover advantage and historical significance has garnered it considerable trust and popularity which has naturally lead it to adopting the role of reserve currency in the cryptocurrency space despite its widely disputed "flaws".

Most people don't understand how the internet works, yet most people use it every day, and it's considered the biggest globally impactful evolution since the industrial revolution of the 1800s. Blockchain has all the hallmarks of a global evolutionary shift, much like the inception of the internet itself.

Blockchain technology is referred to as Web 3.0, or the third generation of the internet. At present, Blockchain technology adoption is in its infancy; to put it in perspective, current adoption rates are akin to the internet during the 1990s. We all know how the internet affected our lives during the following decades, don't we? Governments, institutions, and companies both big and small are getting involved in the crypto space, and that number is increasing exponentially every year. From healthcare, law and education, to real estate, logistics, and digital identity management, blockchain is having an impact on most of the industries we know and use today, and it's only just beginning.