Cryptocurrencies Part 3-

Now that blockchain technology has been briefly explained, the next item that I'd like to talk about is what a cryptocurrency actually is.

Cryptocurrencies are exactly what their name implies them to be. An encrypted currency that is utilized in a digital space. Think of them as "digital money".

Google defines cryptocurrencies as:

"A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. They provide an outlet for personal wealth that is beyond restriction and confiscation."

Many people make the mistake of assuming that all coins or tokens created are cryptocurrencies. They are not. We'll take Ethereum as an example.
Ethereum has the second largest market cap, sitting at $80,900,880,493 at the time of me writing this article. It has long since been the silver to Bitcoin's gold in terms of it's market dominance, but Ethereum is not actually a cryptocurrency. It's a software platform that let's programmers build applications on top of blockchain technology. Within the Ethereum platform, is the actual cryptocurrency, called Ether, that is used to power applications built on the Ethereum blockchain.

With the introduction to blockchain technology, a new arena has opened up for exploration and innovation. The digital race to pioneer new products, services and ways to conduct business has begun. New cryptocurrencies are being created as more attention and funding have been allocated to this technology by the media and entrepreneurs; allowing the individuals working in this field to compete at exploring unique ways to solve problems that we face.

We as a society are progressing, and with that comes a reliance on technology, our experiences have become increasingly digital.
The majority of transactions, applications, smart-contracts, are moving into this digital realm. Blockchain technology is increasing its territory and we will probably see a significant shift from society to integrating this technology into our lives in the next ten or twenty years. When this happens, the value of having invested early into this technology will have put you at a significant advantage over others who came late to the party.

• The last post that I will be doing in this series will look at some cryptocurrencies for 2018 that I think have good potential for growth over the course of the year.

The figure for Ethereum's market cap was taken from https://coinmarketcap.com/
Dated 2/11/2018