Signals Crypto
When you hear the word “Signals Crypto” it sounds cryptic. Who would have thought that something that sounds so obscure would be challenging the centuries-old order of state-back currencies?
When people think of crypto-currencies – whether it’s Bitcoin, OneCoin or others – they think of the unsavory, mysterious operators somewhere offshore away from regulatory oversight. Of course, the financial services industry is heavily regulated, especially in the United States.;
Confirming these perceptions, however, crypto-currencies – and their associated blockchains – are waiting to be regulated at the same level that other investments are.
It’s quite clear that the markets are ahead of the regulators in relation to crypto-currencies and blockchain. PricewaterhouseCoopers wrote in its 2017 Global Fintech Report that funding in blockchain companies has increased 79% from 2016, which amounted to the US $450 million. Moreover, 77% of financial institutions surveyed are anticipating integrating the blockchain into their firms by 2020.
The blockchain may sound
complicated, but let’s take a crack at explaining it.
At its core, a blockchain is an online
decentralized ledger. That is, a blockchain is similar to a written record
maintained by a computer network. Transactions are encrypted and recorded on
the ledger; subsequently, they are “blocked.” Mining machines verify each block
by placing a date and a time on every transaction. After the transaction is
verified, it is connected to other blocks. This link ensures that transactions
are almost impossible to modify for nefarious purposes.
In a
nutshell, financial transactions can now be made without a financial institution like a bank. In other words,
anything of value can be easily and safely sent to anyone – in, at most, a few
minutes. In many ways, the blockchain resembles the internet itself. How
financial institutions respond to crypto-currencies and the blockchain will be
worthy of our attention in the coming years.
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