Understanding What Crypto Is
Well, in general, the increase in crypto was triggered by 3 things.
The first one is clear, because of market speculation. We can't deny that the aggressive increase in crypto is partly triggered by market speculation, or by a possibly excessive market rhythm.
But where does that optimism actually come from?
Of course, from the potential functional value or its usefulness.
Then the second one is because of the increasingly widespread development of technology and adaptation of crypto. With the development of technology and adaptation, the potential for real and widespread use of crypto in the future is becoming more real. And this can certainly increase the economic value of crypto.
Well, this second point is what I will discuss in depth in this post.
And the third factor is because of the increasingly high scarcity value. For those of you who have seen my previous posts about Bitcoin, you must already know that the number of Bitcoins is limited, the supply cannot be increased, but it can be reduced, because it is destroyed due to human carelessness.
It can be said that Bitcoin is the rarest and most liquid commodity in the world today. Those are the three factors that make the price of crypto increase.
Well, in this post I want to discuss the second point more specifically.
What kind of technology does crypto actually offer the world?
Simply put, crypto technology can liberate all forms of digital services in the world, without having to be controlled by a company, institution, or even a country. Usually, a digital service is created by a company that employs gamers. Well, the service can be accepted by all users, because it is managed by the company.
The company gives service fees to users, and the company can pay the server manager to service providers like Amazon or Alibaba. So that the service can remain protected.
Now, what's the story if this programmer can create a digital service that can be enjoyed by fellow users, without having to be managed by the company and without needing to use a single server? Well, crypto technology with the name blockchain can create a network of servers scattered throughout the world, and operated by home computers. That way, any program created on the blockchain network can run without needing to be controlled or controlled by a particular company or institution.
What kind of program can be created in the blockchain?
Actually, anything can be done. For example, financial services, such as savings and loan services, insurance, inheritance disbursement, asset trading and others.
But, all of those services are already available with traditional mechanisms like banking, securities, and others, right?
Yes, it is true that transaction services are widely available. But for crypto activists, traditional financial services have many weaknesses, especially those related to the limitations of human roles.
Well, with crypto technology, the role of humans to apply these services can be replaced, like that. Same as a computer program that is completely independent of human interests.
This technology is what is usually called a Smart contract.
For example, financial services made with crypto technology can facilitate servers throughout very quickly and cheaply.
Why is that?
Yes, because there is no manual role for humans, and there are no bank administration fees that must be paid. Very sophisticated, right?
Well, this crypto-based financial program is often referred to as Decentralized Finance' or DeFi.
Financial services with the DeFi concept are open, global and neutral. This program does not recognize geographical boundaries. It doesn't care about conflict
It doesn't care about political conflicts between countries, and it also doesn't look at social status, rich, poor, or important officials.
Anyone, anywhere, and whatever their background, all of them can access the same protocol. No one is left out. Simply with an internet connection, everyone can access these financial services, without having to fill out a pile of required documents and wait to be signed.
Not only that, financial services with blockchain technology can be said to be safe from human beings who have evil intentions.
Why is that?
Yes, because the operational services can run automatically, and no human can tamper with the system that has been launched on the blockchain. Financial services are transparent in nature, from an operational perspective. But at the same time, they are also private in terms of privacy. This means that anyone can verify the operational process of the service.
For those of you who believe in the adaptation of crypto in the future, you can invest in this.
Hopefully useful.
Thank you for taking the time to visit my simple blog.
See you again.
Greetings always compact.
By @midiagam