Future developments

Cryptographic services

The following are some of the services related to the operation of the cryptocurrency system, as well as some examples of what services are built on the cryptocurrency system, in other words: what new services the cryptocurrency system allows to be developed.

The business of hardware manufacturers is considered to be the most stable and profitable. For a long time now, it has generally not been possible to extract cryptocurrency with the computing power of a conventional computer. Demand for specific mining tools is increasing. Even during the gold rush known in history, the best business was “shovel sales”.

New cryptocurrency generation services are easily available. You can take the public source code of bitcoin , litecoin or other cryptocurrencies available on the Internet, modify it for the desired parameters, compile the source code, generate the source block – and the cryptocurrency is ready. Then comes the harder part: arousing the interest of miners, stock exchanges, users and traders.

There is also a great demand for services that enable the acquisition of cryptocurrencies – mining and purchasing. Then you immediately need a cryptocurrency service. There are many types of wallets, such as wallets installed on your computer’s hard disk with special software, mobile applications, and online services, and you can make copies of a security key that can be e-mailed, stored on another device, or printed on paper.

The number of merchants who accept bitcoins is gradually increasing. For example, the UseBitcoins website provides a service for 2551 bitcoin -related businesses (Use Bitcoins). Technically, paying with bitcoin is relatively easy – especially for Estonian residents who are used to digital signatures using the public key infrastructure.

Merchants, in turn, are offered a variety of ways to accept bitcoins , both online and in-store. Given the volatility of the value of the bitcoin (exchange rate), solutions are available in which bitcoins are immediately converted into, for example, euros at the time of purchase. As already mentioned, standard commissions cannot be ruled out in the future, but for the time being commissions are either non-existent or minimal.

According to the experts involved, given the speed of payments and the absence or smallness of transfer fees, it is most promising to develop micropayments based on the cryptocurrency system.

The most common of the services using the Bitcoin system is the auction service29. The range of goods for sale is wide.

For many services, customer identification can become a critical need.

Some examples of services that use or evolve with the bitcoin protocol:

– Ethereum – a software development platform built on its own blockchain indirectly linked to bitcoin , enabling applications such as digital contracts, decentralized exchanges and decentralized domain name management (Ethereum);

– Synereo – Similar to the previous one;

ICOs and IEOs – a new methodology for raising money.

DeFi – a decentralized finance trend , where banking and financial products are developed in turn on blockchain platforms.

The development of technology

Bitcoin ‘s cornerstone – the block chain – is adaptable and applicable to all types of exchange, whether money-related or not.

The Bitcoin protocol allows you to issue, trade in and trade in all types of securities (equities, bonds, new currencies) and any other assets whose ownership is registered in the smart chain. Registering ownership and making transactions in the block chain reduces fraud, commissions and allows transactions that would otherwise be difficult to make. For example, strangers can lend money to each other as collateral for assets registered in a block chain.

Mastercoin and ColoredCoins are projects that use the bitcoin blockchain to manage and transact all assets, enable decentralized exchange services and distributed contracts built into their protocols.

NXT is a cryptocurrency protocol with built-in capabilities to create a decentralized exchange, voting system, decentralized domain name system (DNS). NXT uses a proof of stake algorithm to create blocks – blocks are not mined, but existing user accounts are used to create blocks.

DAG ( directed acyclic graph ) chain – an alternative to a block chain where the transfers are not structured in blocks but follow a certain consistent mathematically related pattern. The mathematical pattern guarantees that the transmissions are unique, secure and very fast.

Hashgraph – similar to the previous one, but with some changes.

Socially oriented projects

As usual, in addition to the realization and speculation of scientific and economic interests, socially oriented projects have also emerged.

Although in the long run it is probably a matter of realizing economic interests, pre – mining for the benefit of the people of the country, which began with the introduction of auroracoin , can also be considered a social project. The aim is to increase the number of cryptocurrency users, which will increase market demand, while the accompanying increase in public awareness of the availability of cryptocurrency as well as its use and security risks cannot be underestimated.

55% of Ripple ‘s total cryptocurrency issuance is donated to charities and participants in Ripple’s charity projects. Until 1. In May 2014, Ripple’s charity project Computing for Good, in which participants shared their computer resources for cancer research (Mapping Cancer Markers) and the Clean Energy Project, received a cryptocurrency ripple in return.

H2Ocoin is a charitable cryptocurrency to support clean water projects in developing countries Charity Water, The Water Project and others.

Students at the Massachusetts Institute of Technology (MIT) were awarded the 2014. $ 100 worth of bitcoins for everyone in the fall semester. The project was initiated by MIT’s Bitcoin Club, which has already raised $ 500,000 for the purpose.