The blockchain is a fully decentralized and distributed network with the ability to record transactions across several different computers and create a shared history that is fully transparent and cannot be modified following completion.
All the data that enters the blockchain is grouped into blocks, hence the technology’s name, and while some are worried about the lack of a centralized overseer, proponents believe that the system is ideal for preventing fraud and tampering.
In fact, some believe that, in the future, the blockchain could be implemented at a much larger scale and help solve complex issues in areas such as logistics and supply chains.
So far, though, the blockchain has been primarily associated with the crypto world. Investors do their research and then move on to trade top cryptocurrency tokens on exchanges such as Binance, the largest platform of its kind in the industry.
When coming up with a trading strategy, investors need to take several things into account, including the engagement rates, volume, and the influence of macroeconomics.
Crypto is, after all, a technological endeavor as well, not just a monetary one, so it’s important to remain aware of the latest news as the ecosystem is always changing.
The shifts that occur in the industry’s underlying technology are, therefore, just as important.
The sustainable blockchain
The crypto world is known as something of a power guzzler. It is true that mining can use a lot of electricity, and that some cryptocurrencies have been revealed to consume more than several countries.
This is one of the reasons why environmental activists have always been rather critical of cryptocurrencies, given their steep carbon footprints in a world that is already dealing with significant global warming and climate change.
The shift to proof-of-stake can decrease emissions by more than 99%, but new developments are taking place as well.
Electroneum is an eco-friendly project that was launched as an ultra-low energy blockchain. It also has reduced fees and operates as a layer-1 blockchain with a unique consensus mechanism called PoR or Proof of Responsibility.
This mechanism slashes energy consumption and can improve the shortcomings of traditional mechanisms as it introduces a set of trusted validators. At the moment, there are thirty-two, and they take on the responsibilities of the stakers and miners that typically run networks.
The blockchain is fully compatible with the Ethereum Virtual Machine, with all transactions being finalized in five seconds and for costs that can be as low as $0.0001 per transaction. This shows that accessibility and sustainability can, in fact, be part of the same network.
Web 2 and Web3
The introduction of this new blockchain is part of a larger shift that has moved to find the intersection between Web2 and Web3.
The former benefits from a more robust and trustworthy system, increased trust from members of the general public, regulatory expertise, and a well-established infrastructure. Web3 brings input into decentralized data handling, innovation, and access to new revenue streams.
Together, these two systems have the potential to revolutionize finance, but only if the best out of each of them is brought to the forefront.
Electroneum has also launched an NFT collection dedicated to the reforestation of seagrass in the Mediterranean, with 100% of the resulting proceeds going to the cause.
Maintaining a balance between innovation and responsibility will be the test that all blockchains will have to go through sooner or later, as all networks will need to move to energy efficiency and become compatible with the latest demands in order to keep up with shifts in the market. If this single example is to be trusted, the future of the blockchain is eco-conscious and increasingly scalable.
The wallets
All crypto owners must have a wallet; otherwise, there’s no way to invest or store coins. But beyond the payments, the digital wallet can also function as an authentication layer.
They prove your ownership of the holdings, gain access to many different token communities, and allow for personalized experiences in areas such as commerce, gaming, and even events.
Blockchains have evolved to include many use cases that were seen as purely theoretical during the technology’s earliest days, including exclusive drops, loyalty reward systems, and unique economies.
Coming to the mainstream
Cryptocurrencies and mainstream finance have traditionally been regarded as entirely separate from one another. In fact, the reason why many investors moved to crypto in the first place was to escape what they saw as the restrictive confines of traditional finance.
But over the last few years, there has been a growing overlap between the two ecosystems, as cryptocurrencies and the blockchain continue to enter the mainstream.
The regulatory landscape is shifting as well, with lawmakers looking to make the ecosystem safer and more predictable for all investors.
The rise of exchange-traded funds has changed the landscape as well, since these assets allow investors to join the marketplace without the need to deal with the inherent volatility.
The Lloyds Banking Group, one of the UK’s largest financial services organizations, with more than 30 million customers and nearly 70,000 employees, has discussed the possibility of improving the nation’s financial system via blockchain.
Artificial intelligence, another novel technology that is changing the systems people are used to, could be integrated as well.
The combination of tokenized deposits with AI is predicted to change financial services as much as the development of the smartphone, as considerable parts of these services would be redesigned.
The UK’s largest mortgage provider is allegedly planning to pair the tech with artificial intelligence in order to decrease the time spent purchasing houses and reduce the number of intermediaries involved in the procedure.
The bottom line
While the blockchain started and became known as a technology that operates side by side with cryptocurrencies, researchers believe it has the potential to achieve much more in the future.
However, even in the case of the crypto world, the blockchain is still evolving significantly and will most likely be able to provide increased functionality sooner rather than later.
If you’re an investor, remember that having a robust strategy is the way to help your portfolio grow, while being aware of the latest developments in the ecosystem could provide you with a good idea of where the marketplace will go next.
