Bitcoin is often in the headlines (not always in a positive context), but crypto horror stories surrounding the father of cryptocurrencies are fading into the past. It’s still volatile as ever, but it’s increasingly infiltrating people’s daily lives. The number of crypto-skeptics remains high, but it’s decreasing quite rapidly.
According to recent stats, about 7% of the global population owns some sort of cryptocurrency; most of them own BTC. More importantly, it has left the fringes of the internet for good, now capable of much more than buying digital assets. From a coffee at Starbucks to plane tickets to the next holiday escape, there’s a lot one can buy with it in the real world.
Needless to say, BTC transactions aren’t like traditional online payment methods. In fact, the technologies it has spearheaded are just as disruptive, and they are taking the fintech industry by storm. Here’s how Bitcoin has reinvented the concept of wallet.
A New Type of Cash
Bitcoin isn’t an isolated phenomenon, and it wouldn’t exist without the digital ledger that hosts it, blockchain. Unlike other types of digital payments (such as credit cards or e-wallets), cryptocurrency operations are decentralized, meaning that there is no institution behind them; algorithms entirely govern them, and all transactions are peer-to-peer.
It took considerable creativity to remove financial institutions (both private and public) from the equation without compromising safety and trustworthiness. Blockchain is the name of the system that enabled this technological leap. It consists of a digital ledger, designed to be immutable and publicly verifiable by its users. This system stores data across several computers, and the entire chain must validate operations in it, making it highly resistant to cyberattacks.
All operations are pseudonymous, meaning that users don’t need to share sensitive data, such as ID or banking information, to buy or sell assets. Perhaps more importantly for crypto enthusiasts, transactions are much cheaper and faster. Unsurprisingly, it has become the sweetheart of online gamers and gamblers, and bitcoin betting is now a (pretty big) thing. In fact, the industry has registered more than 500% growth over the past six years.
Bitcoin is also expanding its reach in the e-commerce segment, with support from brands such as Shopify, Newegg, Planet Express, Travala, and CheapAir, among many others. Uber has even revealed its intention to implement this payment method in the future. As it turns out, it’s a great travel tip for booking accommodations or purchasing travel tickets without worrying about costly currency exchange.
A New Type of Wallet
Ordinary e-wallets aren’t enough to protect the most valuable digital asset in the world. Just like cryptocurrencies themselves, crypto wallets use highly complex technology, also offering a maze of features. However, crypto wallets can be categorized into two types: hot and cold. As one can probably guess, these terms have nothing to do with temperature but with the choice of storage technology.
The key difference here is that the hot wallet is connected to the internet, while the cold one isn’t. Both have their ups and downs, and the best choice mainly depends on how users plan to handle their assets. Hot wallets are ideal for fast online transactions, such as purchases and transfers, as they are easily accessible and convenient. Cold (offline) wallets resemble a regular USB drive and are recommended for long-term storage, keeping them away from cyberattacks.
Meanwhile, hot wallets utilize robust security systems to safeguard their clients’ assets. The most advanced options utilize AI-backed cybersecurity software to detect and neutralize threats or anomalies in real-time. In some cases, it’s also possible to resort to hybrid solutions by using cross-platform integration systems.
Innovative Crypto-Based Fintech Products
Blockchain cryptocurrencies were introduced to the world in 2008, and nearly two decades later, people are still inventing new ways to use them. Here are some of the most disruptive fintech startups today, along with what they offer.
ANote Music
The connection between fintech and showbiz isn’t an obvious one, and that’s what makes ANote Music so surprising. Yet, the connection is there. It works as a marketplace for music royalties, allowing fans to invest directly in their favorite artists by purchasing their songs. ANote Music ensures reliable ownership via secure, decentralized, and immutable transactions. So far, the platform is only available across the EU.
Zabo
Zabo offers a platform that bridges the gap between the crypto world and traditional banking methods. Arguably, one of its main contributions is allowing companies to pay salaries with cryptocurrencies, thereby significantly promoting widespread ownership. Additionally, the company offers physical bank accounts integrated with cold wallets, resulting in a seamless user experience.
Sequence
Cryptocurrencies have been used in online games for a while, but Sequence (formerly named Horizon Blockchain Gaming Inc.) goes the extra mile. It is both a gaming company and an impressive blockchain infrastructure, supporting cryptocurrencies, NFTs, Web3 assets, and everything in between. Sequence’s primary goal is to provide an all-in-one platform for games and blockchain-based transactions of all sorts.
Phemex
“Cryptocurrency derivatives trading” (speculation on future prices) may sound like a complex concept, but Phemex does an outstanding job in simplifying it. The “user-oriented approach” is the company’s core value, inspiring its design and services. Phemex operates globally, making crypto derivative trading accessible to more than 5 million users.
Billion
Billion was created using DLT (Distributed Ledger Technology) to provide a platform for mass-scale transactions on national currency and document storage. The company stands out for maintaining stringent regulatory compliance with its blockchain technology. Indeed, one of Billion’s primary goals is to become a reliable option for traditional financial institutions willing to adopt this technology.
Fireblocks
Fireblocks offers blockchain-based solutions for companies planning to add cryptocurrencies into their daily operations. It’s a great option for first-timers as it provides secure wallets for business, including even cross-border transactions. Additionally, it helps companies meet comprehensive compliance requirements while mitigating the risks of scams, as well as providing real-time monitoring.
Aurus
Aurus is a startup dedicated to the tokenization of real-world assets, most notably precious metals such as platinum, gold, and silver. Its business model is based on a global chain of providers of precious metals to back the distribution of tokenized assets. The company’s main objective is to facilitate gold-backed transactions in Web3 ecosystems.
The Cryptographic Cash Revolution Is Afoot
Bitcoin has decidedly evolved from a digital oddity into a foundational technology behind this financial revolution. While volatility and skepticism persist, its core innovations are long-lasting, and their full potential is still untapped. Along with blockchain, it’s the pillar of entirely digital realms where gaming, artistic expression, and the financial market meet, creating new ways of doing business and having fun.
