The cryptocurrency industry has no doubt been maturing over the past couple of years, especially after the parabolic market development in 2017.
The underlying technology behind cryptocurrencies – blockchain (or distributed ledger) has become more appealing to a range of corporations for various reasons. CryptoPotato recently reported that the tech mogul IBM has partnered with the Bank of Thailand and issued the first Government savings bond on the blockchain.
Recent findings indicate that funding for blockchain-based companies has increased by 79% this year, and there are plenty of reasons for it.
What’s Appealing About Blockchain?
Blockchain technology brings about several pillars that a lot of companies are looking to take advantage of.
Right off the bat, it’s decentralized. This allows for the creation of applications where the governance is concentrated in the community of users rather than in a single corporation or entity.
This is in immediate correlation with another major benefit of blockchain-based solutions – security. Distributed ledgers rely heavily on cryptography to achieve the security of the information and use cryptographic hashing functions.
Hashing is a process where an algorithm receives a certain amount of information and returns an output that has a predictable and fixed size. This plays a serious role in the security of blockchain technology.
Another important thing to consider is transparency. Of course, that’s true for public blockchains where anyone can join the network and take a look at the information that’s stored on it. That’s true for Bitcoin’s network, for example.
The Startup Uprising
As in every relatively nascent industry, there are plenty of companies that are just taking off. In fact, data shows that there are over 3,000 blockchain startups currently registered on Angel List – one of the most popular startup aggregators.
It’s also worth noting that there are many maturing companies that have turned into fully-fledged corporations with a massive number of employees and locations around the world.
The world’s largest cryptocurrency exchange, Binance, is a prime example. The company started operations in 2017 and has already established itself as one of the most reliable and secure venues for cryptocurrency trading. Coinbase and Gemini are other examples of the same.