Blockchain Technology and the concept of decentralization was known to the world even before Satoshi Nakamoto introduced Bitcoin to the world in 2009. However, the introduction of cryptocurrency did give the technology a necessary push and propelled it to the center of everyone’s attention.
Once cryptocurrency became more mainstream, people realized the potential of distributed ledger technology and how it can be used beyond cryptocurrencies. Once firms and companies started to invest in the technology they came up with multiple use cases of the technology.
It’s been 10 years since the first cryptocurrency was introduced and since then a lot has changed in the crypto space. There have been various different uses of the technology in the crypto space, and we will look at the transition of the use cases of blockchain over the years.
You May Also Read: How Are Bitcoins Taxed In India?
When Bitcoin came into existence, it was hardly known to anyone for a significant period in its early existence. Only a few technical geeks understood the potential and early promotion of the coin was based on word of mouth. However, as the Bitcoin gained some popularity and its value grew, more people started showing interest in the digital asset.
The early fascination was based on the fact that the coin had nothing backing its value, like other fiat currencies which are either backed by gold or some other real-world asset.
Since Bitcoin is an open-source programme, many other tokens started to flush in the decentralized space. Ethereum which is the only altcoin apart from Bitcoin to be not considered as security created a blockchain platform rather than just a token. Ethereum network allowed new entrants to form their own token based on Ethereum protocol.
The Ethereum network’s blockchain ecosystem inspired many other new entrants to also try their hands at making a complete platform rather than just a token, and as of today, we have many such networks which act as a platform rather than an independent digital asset.
You May Also Read: How Do Cryptocurrency Exchanges Work?
The Smart Contracts
After the success of Ethereum as a network to help others form their token, the Ethereum network came up with another use case of Blockchain in the form of smart contracts.
Smart contracts do exactly what it sounds, it is basically a small computer programme with pre-defined criteria which if met, execute itself and does not require any human intervention. You can think of smart contracts as “if and then” program where if a certain criterion is met then the pre-defined part of the contract will be executed.
Smart contracts are nothing like traditional contracts as it is not bounded by any regulations or require any human intervention. Smart contracts are quite popular and even today many firms and companies use it to execute various work-related contracts with minimal effort.
You May Also Read: What Hash Does Bitcoin Use?
The Era of Decentralized Applications (DApps)
After the era of smart contracts, the cryptocurrency space shifted towards the phase of decentralized application or Dapps, where the blockchain platforms like Ethereum and Tron started a trend of hosting various software applications based on distributed ledger technology.
Decentralized applications are based on the principle of DLT where the virtual points or prizes can now be converted to real money that can be used in the real world. Dapps have been quite a rage and have been receiving rave reviews from the community.
Decentralized gaming applications have been a rage in the community as these decentralized games hosting platforms not just promises a seamless gaming experience but now the gamers can use their game points to convert them to either a cryptocurrency or fiat depending on the platform it is being hosted on.
The era of Dapps is quite new and many more crypto platforms are joining on the bandwagon to provide a hosting platform. Currently, Ethereum and Tron are two leaders, while Bitcoin Cash has very recently decided to provide support for Dapps.
Blockchain Technology not just gave use cryptocurrencies but ensured that the crypto space is not just limited to tokens and gave us smart contracts as well as decentralized application. Apart from the crypto space, the DLT is also being implemented in various traditional sectors like agriculture, health care, entertainment to ensure equal opportunity and benefits for everyone.
Here Are Few Articles For You To Read Next:
Leave a Comment