Cryptocurrency has the potential to replace any other form of digital money completely. The world without physical money is not only a utopian idea but also a possible panacea for the array of pertinent issues in the present world. Every bit of digital money is traceable, but it still does not guarantee the actual identity of a person. Cryptocurrency promises to achieve certain objectives, which is to difficult in a centralized and undemocratic ecosystem of the internet. It is the reason exchange development for digital currencies is growing as a prominent industry. It is set to be a dominant trait in coming times.
Anonymity is the strongest dilemma when it comes to regulating the cryptocurrency ecosystem in the financial world. However, this issue will not overtake its popularity anytime in the near future. The most pertinent aspect, which also is the advantage of this system, is the utility of “trustlessness” in this system. There is no intermediary between the entities doing any transaction. It means, there is no third party authority to validate any transaction. The mechanism is such that it does not require a validating party.
Thus, this system offers massive leeways to cut cost, time as well as resource in any transaction. However, it does not mean, that cryptocurrency landscape is too secure. The DAO episode exposed the vulnerabilities of this technology, but it also made the foundation to avoid such possibilities of roadblocks in the future.
Morgan Stanley, in a recent report, stated that Bitcoin, the largest cryptocurrency, is now traded more against digital assets. Per the report, the market is waiting for the “next technological development” that will increase “the adoption of the underlying asset or derivatives” of cryptocurrency. Blockchain technology as currency utility is now stable without many disruptions, the surge is sure to arrive again with outbreaks of new technologies to support the system. Thus, with the gradual development of technology, cryptocurrencies will be also aligned for mass adoption. Exchange development with innovative ideas will be a massive thrust.
Economists are taking the side of cryptocurrency. Aleh Tsyvinski from Yale University predicts that Cryptocurrencies will transform. Per the economist, this especial currency will “fulfill some kind of need which is different from traditional asset classes like Stocks, Commodities, and Currencies.” Also, blockchain is gaining good adoption apart from its utility in cryptocurrency.
On the other hand, Thomas Frey from DaVinci Institute rightly thinks that “cryptocurrencies are still too geeky”. Comparing it as how Computers had the hype in 1980, he is said people don’t need to know much how they work, but what they do. The relevance of cryptocurrencies in micropayments, transferring large sums of money and overseas transactions will make it a significant foundation of other technology. Against this backdrop, Currency exchanges and platforms will gain good relevance in the upcoming future. Thus exchange development services will grow as a profitable and growth oriented industry.
Recently, several major events across the globe erupted to back the technology. Columbia announced five-year tax exemption for any blockchain based startup, initiating a full support of cryptocurrencies. Coinbase, the largest Crypto-Exchange of the US will join Bitcoin Exchange Traded Fund (ETF). These prove that cryptocurrency will take a stronger role in the global financial landscape. As an industry, this trend will support Exchange Development services and companies with the adoption of currencies in other formats.