Although the concept of virtual money is not a novelty, the emergence of Bitcoin in 2009 was the event that started the frenzy around cryptocurrencies and blockchain technology.
Thus, the impact of cryptocurrencies on the global financial scene has sparked huge debate between governments and traditional banks around the world, polarizing the positions of different regulatory entities.
However, the existence of cryptocurrencies would be impossible without the advent of the digital age and the widespread use of computers, which would also not have existed without the evolution of information technology and its expansion around the world. Now let’s see how cryptocurrencies and blockchain tech expand beyond the usual “buy bitcoin” advice into the IT industry.
Information Technology (IT) – What Is It?
The term information technology (IT) can be explained as a set of distinct activities and solutions that are done through computational resources.
This set of activities and solutions encompasses a wide array of purposes, including obtaining, storing, protecting, processing, accessing, and managing information and data.
In this context, it is worth noting that the concept of information refers to data that is organized in a logical and intelligible way by human beings.
The process of mastering data facilitates decision-making for anyone, thus making it easier to analyze losses or benefits. Hence, the job of IT professionals is to propose activities and solutions that will facilitate the organization of data through computing technology.
Cryptocurrency vs Information Technology (IT) – Is There Any Correlation?
It is impossible to dissociate the idea of information technology and cryptocurrencies since it is impossible to create a blockchain without the existence of a whole technology framework that is only possible thanks to the existence of information technology.
Since the publication of the whitepaper that would give rise to Bitcoin in 2009, the rise of blockchain technology has definitively impacted various segments of society, including the financial market, fintech, etc.
All cryptocurrencies share the same essentials since all of them run on the blockchain, a ledger that works as a shared public record of transactions, in which individuals can create and track digital tokens.
In other words, everything that happens on the network of a blockchain is immutable, public, and decentralized, eliminating the risk of fraud and counterfeiting.
With the emerging popularity of cryptocurrencies and the entry of many mainstream companies in the crypto industry (e.g., Tesla), it is impossible to deny blockchain technology has changed the face of finance nowadays.
As digital assets do not exist in the real world, they are the result of a collective agreement between users, who confirm that each cryptocurrency was generated by the network and that it belongs to a specific user.
Will Information Technology (IT) and Blockchain Technology Change the World Forever?
However, blockchain technology is not just cryptocurrencies. Instead, this unique technology can be used for almost any computer system to provide more security, efficiency, and processing speed.
In this sense, blockchain has the power to change the concept of information technology (IT) as we see it. Powered by a decentralized database, blockchain technology can be used to fulfill several purposes by validating data.
There are several advantages in Blockchain technology that have attracted the attention of several companies (and even governments) around the world.
Theoretically, as it is possible to use blockchain technology in whatever existing computer application, the chances are that Blockchain will lead the world into a huge digital transformation in the next decade.
Advantages of Blockchain Technology – Summarized
There are several benefits associated with blockchain technology, as demonstrated in the following topics.
Blockchain technology is powerful. For instance, the Bitcoin network has a computing power 43,000 times greater than the 500 largest supercomputers on the planet combined. Due to this single fact, it’s a wise idea to invest in projects that solve problems in the IT industry because their cryptocurrency price could appreciate greatly in the future.
Mobility / Suppleness
Cryptocurrencies are stored in digital wallets, meaning users do not need to carry cards to access their funds and conclude a transaction. Hence, users can travel around the world and pay for products/services using cryptocurrency, whenever these assets are accepted.
Plus, there is no need for intermediaries, middlemen, banks, or any other entity to conclude a transaction.
Blockchain technology allows each user on the network to remain completely anonymous to other participants if they want to do so. In this sense, not even crypto asset transfers require any sensitive information, as only the number of the virtual wallet is visible.
It is plain to conclude that cryptocurrency and information technology are not distant concepts.
Eventually, thanks to information technology (IT) and the extensive use of blockchain technology, the masses will finally have access to a digital economy, fully independent of the regulation of governments, banks, or other centralized institutions.
Yet, even though this reality is still somewhat distant from most people, online communities can now rely on frameworks for creating their own virtual currencies and carry out transactions among their members.