Two people meet at a party. They strike up a conversation about investing, the nature of money, and the current state of the economy. One of them mentions a new technology called “Bitcoin.”
Perhaps the other person has never heard of Bitcoin, or quite possibly they have but don’t know much about it.
“That’s internet based digital money, right? Do people really use that? I’ve heard it’s very volatile and unstable.”
The two begin to discuss a new technology called “the blockchain.” It’s what makes bitcoin possible and, it turns out, the technology has the potential to radically change the structure of every sector of the global economy.
What exactly is a blockchain?
A blockchain is a decentralized or distributed database maintaining a list of records, which are secured by cryptography, and can’t be altered in any way. The technology is called “blockchain” because the database is assembled by “blocks” of records. Each new block processes one batch of transactions and then gets added to those that came before. Every transaction is visible to anyone interested, and the database itself is maintained and verified peer to peer by everyone who uses it.
This means that blockchain technology gives us a way conduct and validate transactions of many kinds without a central authority. In the case of finance, it means we can exchange blockchain powered currencies without needing a central bank to authorize and secure the transaction. This is what makes “cryptocurrencies” — digital coins cryptographically secured and transacted via a blockchain — possible in the first place.
What are the implications of blockchain technology?
This is where things get really exciting! Much more important than, say, the day to day value of bitcoin, is the potential shift in freedom and possibilities that is occurring right now for everyone because of this technology.
With blockchains we now have the ability to send money to our loved ones across the world in a matter of minutes for minimal fees, no matter who we are or where we are. But that’s just the beginning. We also have an emerging suite of digital platforms, powered by digital currencies, which will usher in a new era of inclusive, participatory, and accessible ways of interacting, sharing, and being together. These platforms are designed to empower individuals through collaboration, rather than depending on centralized models of control.
However, for those interested in getting involved with digital currencies and the new technologies they enable, the learning curve can be steep. It can feel especially daunting to a new user who begins to read about Bitcoin, studies for a few hours, gets a digital wallet set up, and after purchasing their first coins learns that Bitcoin only scratches the surface of a vast emerging sector of the global economy.
What’s beyond Bitcoin?
Today there are over 50 digital currencies with multimillion dollar market caps. The second largest is Ethereum, a digital currency that fuels the Ethereum World Computer and that can create code based contracts — “smart contracts” — which automatically execute negotiated arrangements designed for a specific time in the future. This kind of functionality could reduce or eliminate the need for companies like Ebay, Uber, or other middle-men because users would be able to safely execute contracts and maintain agreements directly.
There are other big currencies too. Dash and Litecoin have gained serious traction in the space. They process faster than Bitcoin transactions, and have significant user bases.
Some digital currencies are built to be excellent stores of value in peer-to-peer transactions. Other digital currencies are designed to power blockchain systems that serve a range of different purposes. Needless to say, the cryptocurrency landscape is multifaceted and complex, but holds enormous potential for both investment, participation, and positive social change.
Sounds exciting, but a bit confusing. How can I get involved?
This is where Cryptodex comes in.
Cryptodex is an index pool platform built to give every individual the opportunity to invest in a diversified portfolio of emerging cryptocurrencies. We recognize that many people will need a bridge into the crypto-space that is safe, easy to use, and which offers interesting and dynamic investment opportunities.
The Cryptodex platform will provide an accessible and easy-to-understand way for investors to access hand-curated funds of promising new digital currencies. Rather than requiring countless hours to learn enough to comfortably navigate in this new economic paradigm, we want to make smart cryptocurrency investments accessible to everyone. At the same time, we also want to empower each investor to become a fluent user of cryptocurrency. That’s why the Cryptodex platform will also include a robust set of educational tools and resources. Each user can gain confidence and learn at their own pace, while simultaneously participating in a diversified range of promising and exciting investment opportunities from day one.
So, what should I do now?
Well the Cryptodex prototype application is currently being built. It will be completed in approximately late August, followed by a crowdsale for both the Cryptodex pool platform and our education portal. For now, you can sign up for our newsletter at the link below and we’ll keep you in the loop:
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Email: jake@cryptodex.info
Skype: jakevartanian