Presently, Cryptocurrency has become a global phenomenon. It’s a virtual currency and has captured the imagination of few people, some are confused about it and while some are struck with fear of its use.
So, let us understand some basic concepts of Cryptocurrency and what all you need to know about it.
What is Cryptocurrency
Cryptocurrency was first invented in 2009 by software developer Satoshi Nakamoto. Bitcoins are the first Cryptocurrency invented by him.
It is a digital currency or money created from codes. It uses cryptography, to control the creation and transfer of money. It is an encrypted string of data or a hash, encoded to signify one unit of currency. It is produced by people, businesses, computers running all around the world and is stored in digital wallets, which acts as a virtual bank account.
It is an electronic payment system, based on mathematical proof, held electronically and is not available in printed form. It was particularly designed to make peer-to-peer payments.
The idea behind the creation of cryptocurrency was to produce a currency which is independent of any central authority, easily transferable electronically, more or less instantly and with a very low transaction fees. Cryptocurrencies are not tied to any country or subject to any government regulations and is monitored by a peer-to-peer internet protocol.
How Cryptocurrency works
Blockchain technology is used to facilitate the cryptocurrency transactions. It records information of various types and verifies transactions using cryptography, which ensures that the data recorded is trusted and cannot be changed or removed. The blockchain is an implementation of a digital ledger.
How to buy cryptocurrency
You can buy it from either exchange, or directly from people who possess it, by paying hard cash/ credit/ debit cards/ wire transfers, or even with other cryptocurrencies. Platforms like coinbase.com and coindesk.com provide you to buy Bitcoins and other cryptocurrencies.
There are different types of cryptocurrencies in the market, few popular are Bitcoin, Ethereum, Litecoin, Dash, Ripple.
Benefits of using Cryptocurrency
- Decentralized control – it is not tied to any rules or regulations of any specific government, exchange rates, interest rates and country-to-country transaction fees.
- International transactions move faster.
- Identity of its user is not revealed
- Protects your transaction from frauds.
- There are no charge-backs because of which many are turning away from accepting credit cards and opting cryptocurrency, more.
- By accepting Cryptocurrency on your business website, you engage a wider audience, which simultaneously increases your profits.
- It has a competitive advantage and provides an opportunity for all businesses to become an industry leader in their respective field of business.
- It has amazingly lower transaction fees as compared to your credit card and other payment gateways.This provides companies with an opportunity to pass a discount to customers by lowering the product/service prices.
- It’s completely transparent and stores complete details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain.
- Customers get multiple options at your website to make payment of their choice. Enhancing the overall experience of the customers to fit his/her needs.
- Neither transactions nor accounts are connected to real-world identities.
- All transactions are fast and easy
- Protects the payment against the devaluation of their national currency
- It is fully secure as funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency.
- You don’t have to ask anybody to use cryptocurrency. It is Permissionless.
Use of Cryptocurrency & Blockchain Technology in Event Industry
The increasing use of smart-phone has benefited a lot to event ticketing platforms all around the world. The online event ticket sale industry is booming. The research data shows that revenue generated from ticket sale in both Primary and secondary market is touching new heights.
In order to maximize the attendance of visitors at an event and earn more revenue, event planners are opting for a secured and smarter ways of ticketing gateways by using blockchain technology.
This helps in
- Reducing the frauds like sale of counterfeit tickets, surge in ticket prices, as done in secondary market
- Increasing the overall experience of visitors to the ticketing portal.
- It allows event organizers to create, manage and promote their events and tickets with lower ticket prices
- Set price controls and receive commissions on ticket resale as per the requirements
- Transparency and secure fund transfer
- Better authenticity of the tickets
All these factors can enhance the event management company’s profile in the market and also opens up new revenue streams for event organizers.
Payment portal like PayPal is providing cryptocurrency options to book tickets. Eventdex is having PayPal integration for all types of event ticket booking. Kickcoin is the first cryptocurrency launched for event industry which will allow for the development of a decentralized event promotion platform, where users can promote events and receive rewards.
Future of Cryptocurrency
The only drawback of doing Cryptocurrency transaction is that it is irreversible; there is no safety net to reverse back the transaction in cases of frauds. As every day, new Cryptocurrency are emerging, few old-one die and some survive the tests of the market. However, the economist and market analyst evaluate that Cryptocurrencies will gain steady legitimacy in the market – as a protocol for business transactions, micro payments, and overtake as a safe and preferred remittance tool over other options..