Cryptocurrencies continue to make headlines led by the most famous and widely own digital currency, bitcoin. Prices of this cryptocurrency have skyrocketed and despite skepticism that bitcoin is for criminals and millennials, prices continue to shrug off bad news. Cryptocurrencies are gaining popularity because the help deter fraud driven by blockchain technology which drives the transaction processing of all digital currencies. Recent news, shows that this phenomenon is gaining traction and unlikely to go away soon.
What is a Cryptocurrency?
A cryptocurrency is an alternative currency that can be used to paid for goods and services. Coinbase provides access to many cryptocurrencies including Bitcoin, ethereum, and litecoin. Cryptocurrencies have been gaining popularity and certain every day transaction such as purchasing a home and paying government debt have been recorded using bitcoin. What makes cryptocurrencies so popular is that there is a finite amount of the product, so it cannot be diluted by a central bank, and that its recorded using blockchain technology which helps deter fraud.
Blockchain Technology is Taking Hold
Recently, Mastercard, filed a new patent with the U.S. Patent and Trademark Office, which focuses on a new payment method the credit card giant plans to use to record transactions. The goal is to ease payment settlement times, and produce a more robust record of historical transactions. The patent application shows how the company is planning on using a blockchain-based database capable of instantaneously processing payments, guaranteeing that merchants don’t need to wait days before receiving funds for their products.
Additionally, the patent filings show that the technology would help the company keep an ongoing record of these transactions, and be able to confirm that a vendor was actually paid after a particular sale. The information that would be stored using the blockchain technology and would include the transaction amount, a guarantee of payment, confirmation of the payment and the parties involved.