35. Using the Mechanisms of Cryptocurrencies in Regular Cash Flow

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

Blockchain technology was initially operated as many areas which, like all those advanced enough and too complicated things, was something that only enthusiasts use, showing that its development gives 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 usually be tied to the defenders harsh attitudes to the current system unfair and that is a big change necessary.

Since the digital money was not designed to only represented a revolution, but to the actual, gradual changes opened the way, its concept has not been disputed in the way rejecting a priori an idea, but it is also a kind of fight from the centers of financial power against a phenomenon that is a little makeup the threat progressed slowly.

The sudden decrease in the value of digital currency bitcoin that occurred several times was the result of a number of moves, from hacking platform, destroying the system of electronic mining, to shopping at the market and sold at almost zero price when the giants of Wall Street sought to eradicate, but the relationship of supply and demand did his.

The focus has, however, for long been only on bitcoin as a phenomenon, but only when it went down deeper into what causes his indestructibility, it was observed that there is actually a system in which the function that that is in fact revolutionary. Today there is less sharp opponent, much less those who deny the success of bitcoin, as it was followed by a phase in which they are just leading global banks and corporations have shown a willingness to infrastructure that allowed traffic cryptocurrency use in 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 of banking in the previous financial history.

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

There is already a huge number of companies in the world to experiment with ethereum, and usually work in a closed environment, and interest in investment occurs just at companies that still retain the status of market giants, but are aware of how the strategy and the domain of business it is necessary to adapt trends can be discerned.

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

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

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

In private chains cryptocurrency there is no element which 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 of defining values ​​to be created opportunities for exchange, storage, withdrawal and allocation of resources without involving a physical cash or any other unit of measurement in the process.

The advantage is that when transferring the assets will not be necessary complex calculations, because the funds are not actually dislocated from the chain, but only changes the record that exists in the database.

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

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