Software Engineering Insights

Hundreds of technologies debut every year to transform the conventional way doing things. While some of them run down, there are some that hold the potential to cause disruption and become a trend.

Ever since their introduction, Blockchain and cryptocurrency go hand-in-hand. The Blockchain concept is complex, and involves an ever-growing database of records, saved in blocks that are linked to each other and are cryptographically secured.

By now, you must have heard of the term Bitcoin; the digital currency that made headlines all over for its phenomenal rise (and occasional fall) in value. Bitcoin was the first cryptocurrency that was famed for its computer encryption, preventing many from making fraudulent transactions online.

 As the Blockchain technology matures, the digital world is realizing the opportunities that it brings in. Crowdfunding through cryptocurrency is one of the ingenious benefits of Blockchain that startups are utilizing, globally. The concept is popular as Initial Coin Offering (ICO).

Paper contracts is an old-school approach for binding agreements. Involving multiple intermediaries, several rounds of negotiations, and a lengthy administration of finalized agreement is no more a standard practice. While digital documents are an effortless alternative to these traditional contracts, they are easy to forge.

No matter how great a business idea is, its existence and endurance is difficult without sufficient funds. Since long, Initial Public Offering (IPO) has been one of the popular and regulated fundraising schemes, which, today is challenged by Initial Coin Offering (ICO). Thanks to the steeping rise in popularity of cryptocurrencies and Blockchain.

Cryptocurrencies are causing a stir with their skyrocketing value. With this, the demand for Blockchain wallets is rising as well. By the end of 2017, over 21 million users were reported to be using the wallets for transactions of their digital currencies (according to Statista).

Naive companies and startups usually turn to angel investors and venture capitalists for fundraising. In order to receive an initial capital aid, these startups give away a part of their equity to the investors. While this idea has been prominently adopted from years, startups today are more interested in holding on to their ownership, and still secure funds for development. This is where Initial Coin Offering (ICO) comes into picture.

Blockchain is a cryptographically secure, shared, and distributed ledger of records, aiming to simplify transfer of digital assets from an individual to another. It’s a peer-to-peer network, wherein thousands of computers are connected, running complex algorithms to validate a transaction.

Cryptocurrencies, especially Bitcoin is making great strides, leaving many curious about its underlying technology. For those religiously following the cryptocurrency sphere must have discovered the contribution of Blockchain in securing the transactions.