Cryptocurrency was introduced to the world in 2008 by Satoshi Nakamoto in the form of the very first cryptocurrency, Bitcoin. It took time for Bitcoin to take traction, but now as people got more into technology and understand the advantages of having a decentralised system, Bitcoin’s value is rising again.

But bitcoin is not the only one; there are also many other cryptocurrencies in existence today. According to CoinMarketCap, there are now 15,497 crypto coins, and the global crypto market cap could cross a market cap of $3 trillion. The reason why crypto is picking up is due to the very important advantages it grants when compared to the traditional system.

These advantages are due to underlying blockchain technology which supports cryptocurrencies. Ethereum is a blockchain technology on which many tokens, including Ether, are based. All the functionalities, like the smart contract compatibility, decentralised app compatibility, transaction speeds, NFT compatibility, etc of the coin depend on the blockchain on which it is built.

Application of Blockchain

To best use the concept of blockchain to improve current systems of operations and make them less tedious and faster, decentralised apps (DApps) are being developed. One of the best examples of the industries in which DApps are being developed is the finance sector, by developing supporting elements like smart contracts which automatically get executed and complete the function automatically. Fees associated with the transaction are called gas fees and generally vary from blockchain to blockchain.

Development of NFTs

Non-Fungible Tokens (NFTs) is a new industry developed due to the presence of smart contracts as it has given an audience for new artists as well as old ones and has given value to digital assets. Even digital assets like memes, pictures, videos, and game equipment have value due to NFTs, which are certificates stating that the art is 1 of 1 and there doesn’t exist any other such art in the world.

This has promised a good passive income for the investors, as the art keeps on giving royalties if stated that way in the smart contract. The Crypto world has promised new existing investing opportunities for risk takers, as the industry is too volatile and yet has a lot of untapped potentials to explore. Hence there are many investment schemes like the recently launched Bitcoin ETF, liquidity pools and basic buy-sell of cryptos.