Will Blockchain Survive the 2022 Cryptocurrency Crash?

Yes. Blockchain will not only survive the crypto market crash 2022, but it’s also about to surge in many different industries. The future may not be as bright for crypto just yet, no matter how much Elon Musk continues to throw his support behind Dogecoin.

Blockchain Is Not Cryptocurrency, And Crypto Is Not Blockchain

When it comes to worldwide mass excitement, be careful who you bring to the party. If things go bad, you might be found guilty by association. Blockchain and crypto exploded onto the general public’s consciousness at fundamentally the same time. It’s no wonder many people have trouble seeing the difference.

There was so much excitement and money surrounding both crypto and blockchain that investors and enthusiasts alike didn’t bother to investigate the details. Fast forward to the cold hard reality of the crypto winter. The price of Bitcoin and other cryptocurrencies have plummeted so fast, many people are too shocked and afraid to draw any distinctions.

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The Main Differences Between Blockchain And Crypto

In the simplest terms, blockchain is a way to store data on a digital file. It’s an open database that is duplicated among many, many computers. This open distribution makes it completely transparent so that the data contained therein can be verified by many users.

This widespread ability to be verified means no one central agent can change the data. This decentralized ability to verify makes the data contained in the blockchain extremely secure.

Blockchain was originally conceived as a technology to manage a cryptocurrency. If you think of blockchain as the tool and bitcoin as the product, it’s easy to see they are related but distinct. Here are some other differences:

Blockchain is an open form of big data – Cryptocurrency is a virtual form of money.

Cryptocurrency is based on anonymity -- Blockchain is all about as many people as possible having exactly the same information.

Bitcoin, Ethereum, Tether, USD Coin, and BNB are all forms of cryptocurrency that rely upon blockchain technology – Blockchain is a tool that is used in many different industries.

The blockchain solution is unaffected by stock market fluctuations – cryptocurrencies are susceptible to wild swings in value like a bear market on Wall Street.

Blockchain is intended to keep things like personal finances secure – Cryptocurrency is promoted by people who want to increase value.

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The Different Types Of Blockchains

There are four different types of blockchains and each one has both pluses and minuses:

Public Blockchains – This is the type of blockchain that is most closely associated with Bitcoin and other forms of digital currency. Public blockchains provide a ledger that is easily accessible to anyone who has registered as an authorized user or node. Everyone shares the same information.

PROS: Highly secure. As long as users employ the protocols sincerely, it is difficult for hackers to target.

Transparent. Everyone gets the same information, and the more people that have it, the more secure it is. Transactions of any kind are instantly available to everyone.

CONS: Slow rate of transactions. Transactions Per Second (TPS) are slower than other blockchains because there are so many nodes, and it’s time-consuming for every node to process the same transaction

Significant use of energy. Here again, so many nodes have to process/verify data, and this can mean millions of computers using up energy.

Private Blockchains – Private blockchains are a closed systems accessible only by authorized users. The entity that owns the private blockchain controls the security of the network. An example of a private blockchain would be an organization that enables only verified participants to interact with its own supply chain of products.

PROS: Lightning fast. Because of the limited number of nodes, each transaction is distributed to the network instantly. Private blockchains have an extremely high TPS.

Size doesn’t matter. The number of nodes can scale up or down as needed depending on what is called for by the owner of the blockchain.

CONS: Centralized control. One agent controls many factors. This central control runs counter to the decentralized inspiration of a blockchain; however, within the closed system, there are many benefits.

Security questions. Since all control is centralized, a private blockchain doesn’t benefit from the same dispersed transparency. By its very nature, a private blockchain is more susceptible to hackers. The owners of the private blockchain must take precautions.

Consortium Blockchains – More than one company, agrees to manage and operate the blockchain according to their joint needs. This type of blockchain is still a closed system, although it does answer many participants.

Hybrid Blockchains – Many consider this a closed system; however it benefits from the advantages of both private and public blockchains. Based on the protocols, some of the data is made public, and some of it remains private. Confidentiality stays high for certain private data, and security increases for public data because it’s so transparent to so many users.

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Smart Contracts And Proof Of Stake

Smart contracts and proof of stake are two popular topics when it comes to blockchain and cryptocurrency. Proof of stake is a way to achieve consensus to validate cryptocurrency transactions. Smart contracts are programs that are triggered to run if and when a set of agreed-to conditions are satisfied. In this way, all parties are notified immediately.

Banks And Financial Institutions Are Just the Tip Of the Blockchain Iceberg

To learn just how many industries are racing to adopt blockchain technology, click here.

Healthcare is one of the industries that is gaining the most benefit from blockchain capabilities.

Imagine having every single detail of your entire healthcare history accessible in seconds only to those of which you approve. As healthcare becomes more and more sophisticated, so too does the amount of data increase. Keeping all this data current, organized and secure is a big challenge. And yet, the rewards to the patient can be phenomenal.

Companies like Wytcote are revolutionizing the quality of healthcare for seniors so that they can lead safe and independent lives while staying connected to their loved ones.

Frank Gomez

Frank is a technology visionary and strategic hands-on executive with over 20+ year track record of helping companies revitalize, restructure, and implement complete Unified Communications systems in national and global markets.

wytcote.com

The Difference Between Blockchain Technology & Cryptocurrency

It seems like everywhere you look these days, someone is talking about blockchain technology and cryptocurrency. But what do they actually mean? And are they the same thing?

This blog post will break down the differences between blockchain technology and cryptocurrency and explain why businesses should be paying attention to both. We’ll also give some examples of how businesses use both technologies to power their operations. So read on to learn more.

What is blockchain technology?

Blockchain technology is a distributed ledger technology (DLT) that records transactions in a digital public or private database in chronological order. “Blocks” of verified transaction data are added to the chain, creating an immutable record of all activity on the blockchain.

Blockchain technology can create both public and private blockchain networks. A public blockchain network is one where anyone can join and view the transaction history, while a private blockchain network is “permissioned,” meaning only authorized users can access it.

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Blockchain is distributed across a network of computers, with each computer or “node” having a copy of the entire database. This makes it incredibly difficult for someone to hack or tamper with the data, as they would need to update the copy on every node in the network simultaneously. In addition, blockchain technology enables users to anonymously record and verify transactions without a third-party intermediary. This not only makes transactions more secure but also reduces transaction fees.

Blockchain technology came to the surface with Satoshi Nakamoto’s white paper in 2008. It has vast applications, including in cryptocurrencies supply chain management and voting.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. Most cryptocurrencies are decentralized and not subject to control by the government or financial institutions. They’re often traded on decentralized exchanges and can be used to purchase goods and services. Some popular cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

The organic nature of cryptocurrency is its most defining feature. It is not issued by any central authority and is therefore immune to government manipulation or interference. Cryptocurrency is based on blockchain technology.

Blockchain constantly grows as “completed” blocks are added with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Cryptocurrency nodes use the blockchain to differentiate legitimate crypto transactions from attempts to re-spend coins that have already been spent elsewhere. This can’t be possible with a credit card.

Essentially, blockchain provides the backbone for cryptocurrency transactions by allowing for a decentralized ledger of all crypto exchanges. Cryptocurrency is built on blockchain and allows for digital currency transactions without a third-party intermediary.

What Are The Key Differences Between Blockchain Technology And Cryptocurrency?

There are a few key differences between blockchain technology and cryptocurrency.

Nature of blockchain vs. cryptocurrency

Blockchain is a decentralized technology with no central authority that controls it. On the other hand, Cryptocurrency can be decentralized or centralized, depending on the currency. Bitcoin, for example, is a decentralized cryptocurrency, while Ripple is a centralized cryptocurrency.

Use

Blockchain is the underlying technology that powers cryptocurrency. It is a digital ledger of cryptocurrency transactions. Cryptocurrency is built on blockchain and is primarily used for digital financial transactions (storing wealth, making payments, or investments).

Blockchain has a wide range of other potential applications beyond powering cryptocurrency. It could be used to create a decentralized database of medical records or track the movement of goods through a supply chain.

Value

Blockchain doesn’t have monetary value and, therefore, cannot be used to measure wealth. On the other hand, cryptocurrency has monetary value and can be used to measure wealth.

Potential Security Risks Associated With Blockchain Technology Or Cryptocurrency

As with any new technology, there are always potential risks associated with implementing blockchain or cryptocurrency into business operations.

a. One of the biggest concerns of security in cryptocurrency or blockchain is the possibility of hacking. Because blockchain is a decentralized system, it is less vulnerable to hacking than traditional systems. However, there have been cases where hackers have been able to access wallets and steal funds.

b. Another risk to consider is the volatility of cryptocurrencies. The prices of Bitcoin and other cryptocurrencies can fluctuate wildly, making them a risky investment for businesses.

c. Finally, businesses should be aware of blockchain and cryptocurrency's regulatory environment. In some countries, such as China, ICOs are banned outright. In others, such as the United States, regulations are still being developed.

How Businesses Are Already Using Blockchain Technology Or Cryptocurrency To Power Their Operations

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While still in its early stages, blockchain technology is beginning to be adopted by businesses across various industries. Here are a few examples of how businesses are using blockchain to power their operations:

In the healthcare industry, blockchain is being used to store and share patient data securely. This data can then be accessed by authorized personnel, making it easier to provide quality care.
In the finance sector, blockchain is being used to streamline payments and reduce fraudulent activities. For example, blockchain-based payments can be made in real-time and are more secure than traditional methods.
In the retail industry, blockchain is being used to track product supply chains. Blockchain, combined with the ability to program business logic with smart contracts, allows for accurate asset tracking, transparency into the consumer goods prominence, and improved licensing of solutions.
Cryptocurrency markets use cryptocurrency to buy and sell currencies, commodities, and other crypto-assets. They also use cryptocurrency to hedge against financial risks.
Cryptocurrency exchanges use cryptocurrency to facilitate the exchange of goods and services between buyers and sellers. They also use cryptocurrency to provide escrow services, pay fees, and settle disputes.

Get Blockchain Technology for Healthcare

Blockchain technology is something that is often misunderstood. However, it has the potential to revolutionize how data is shared in a secure way between different parties. If you are looking for a way to use blockchain technology in your business or industry, please contact us. We have experience implementing this cutting-edge technology and can help you get started on using it in your organization.

Frank Gomez

wytcote.com