Over the past several years, before the popularization of combining financial and technological trends to the extent of creating fintech trends, the general public was only familiar with the concept of digital currencies, bearing in mind that banks use their power to confront it in any way they can. However, the situation after fintech trends became the subject of scientific and academic research is very different.

Blockchain technology was initially operated in many areas, which, like all those advanced and too complicated things, was something that only enthusiasts used, showing that its development gave them more emotional satisfaction than material gain. The solutions are out of the act reflect upon one timeless, others contrived, but the way it is personified is usually tied to the defenders’ harsh attitudes to the current unfair system and the need for a significant change.

Since digital money was not designed only to represent a revolution but to bring about actual, gradual changes, its concept has not been disputed in the way of rejecting the idea a priori. Instead, it is a kind of fight from the centers of financial power against a phenomenon that poses a slow but increasing threat.

The sudden decrease in the value of the digital currency bitcoin that occurred several times was the result of a number of moves, from hacking platforms and destroying the electronic mining system to shopping at the market and selling at almost zero prices when Wall Street giants sought to eradicate it. However, the relationship of supply and demand did its part.

The focus has, however, for a long time been only on bitcoin as a phenomenon. But when it went deeper into what causes its indestructibility, it was observed that there is actually a system in which the function is revolutionary. Today, there are fewer sharp opponents, much fewer those who deny the success of bitcoin, as it was followed by a phase in which just leading global banks and corporations have shown a willingness to adopt infrastructure that allows traffic in cryptocurrency for their own business. This is a great milestone for joint technological and financial developments and from it could arise one of the most productive moments in banking in previous financial history.

This model was conceived in the created joint database which can be customized in many ways while retaining all the performance it has. Transactions limited models, such as those that occur with bitcoin based on a specific way of contracting or forced preservation process models, as in Ethereum, which at blockchain can perform general-purpose tasks.

There is already a huge number of companies in the world experimenting with Ethereum, usually working in a closed environment, and investment interest occurs at companies that still retain the status of market giants but are aware of how the strategy and the domain of business need to adapt to discern trends.

The first application and experimentation around blockchain begin, first of all, in the sphere of transmitting and sharing digital content, while in common with what is related to accounts and finances in general, it is far less represented. From the results of recently published research on digital currencies, in which the German Bundesbank participated in drafting, it is possible to conclude that the financial sector, in the next few years, expects more complex transformations than anything that happened in the last few decades. The emergence of digital currency has shown that the space for promoting electronic payments and earning transactions does not exist only in improving services provided to the end user but also in supporting these activities.

There was an attempt to improve the bitcoin network, which only allows the possibility of performing transactions but has not been adapted to other activities that, in banking practice with money, such as savings and the like. Therefore, the role of Ethereum is to try, based on decentralized networks that exist in cryptocurrency, to create options that will allow such coverage in contractual relationships, using just digital money, without having to be a value expressed in global currencies.

A few years ago, such an idea seemed to be, to say the least, vain, but now it does not initiate only alternatives. There is a huge interest from entities in the financial mainstream world. At the time of bitcoin breakthrough in the global financial waters, expecting JP Morgan to be interested in investing in this technology would be absurd. However, to date, this financial giant has invested millions of dollars in the financial startup Digital Asset Holdings to investigate the potential of bitcoin.

In private chains of cryptocurrency, no element completely defines the characteristics of the chain, without the possibility of observing it somewhere else. Here, in fact, lie all potential transactions in such networks, because defining values creates opportunities for the exchange, storage, withdrawal, and allocation of resources without involving physical cash or any other unit of measurement in the process.

This article is part of the academic publication Dividing by Zero by Ana Nives Radovic, Global Knowledge 2018