14 February 2023

The Future of Crypto and Blockchain

There is currently a great deal of uncertainty where crypto and blockchain are concerned. However, this is still one of the most exciting and fluid aspects of finance and Fintech that we have ever experienced. Here are a few of the trending ideas that will arguably direct the future of crypto and blockchain. Continue reading to learn more.

Regulation Is a Serious Possibility

There is no way that the powers that be - the central banks and national governments - are going to leave cryptocurrencies alone. Governments are looking for ways to use blockchain themselves, and many have begun to investigate releasing an electronic or cryptocurrency of their own. Regulation of some form should, therefore, be expected soon. The question is what these regulations will look like and who will move first. It is, therefore, important to improve and develop the peer-to-peer systems of interaction and transaction that are currently being used to avoid the adverse effects of any such legislation and regulation.

Increased Security and Proof of Reserves

There have been several shocking collapses in the crypto world, and this has arguably been a good thing for those cryptos and crypto exchanges that have genuine value. The bad actors that managed to bring down FTX have ensured that going forward, the genuine crypto exchanges will offer solid and transparent proof of reserves, such as that demonstrated over at OKX. It is becoming essential to provide a level of authentication and assurances to buyers and traders that their crypto is safe and that its value is genuine, so as to prevent frauds, scams and illegal activity. The proof of reserves must also be included in this audit. To help protect customers' existing reserves, the use of some of the best crypto cold wallets has increased in frequency. Cold wallets store cryptocurrency on devices not linked up to the internet, shielding them from malware, fraud, or even economic crashes. This kind of increased security will help with the drive for mass adoption over time.

Blockchain Is Evolving

The fact that blockchain technology, as released with the emergence of Bitcoin, was open source has allowed several changes and improvements to be made. Various iterations of the private and public blockchain have been developed and all for several different reasons. Blockchain is no longer just about cryptocurrency and the number of new uses ranges from decentralized databases to heightened security and the internet of blockchains. Blockchain is evolving and doing so quickly.

Increased Stability in the Established Cryptos

The known cryptos are expected to find a degree of stability. As with any emerging currency, there has been a huge amount of uncertainty and volatility related to cryptocurrencies. However, as social acceptance increases and the widespread knowledge of crypto improves, uses increase, and the currency becomes established in mainstream society. Crypto is arguably finding its space and it will be in the metaverse. It is the currency of the future and with this certainty and the increased need for the currency, there will also be an anticipated period of stability and certainty.

Crypto and blockchain will forever be interlinked and related and, as shown in this article, there are some changes and improvements in both that are expected to affect how we bank, shop, and essentially interact and transact in the online space and beyond.

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