Cryptomarket

The fundamental value of Cryptocurrencies lies on the Blockchain behind them. Blockchain technology has the ability to ensure transparency and share data between two parties as they are both guaranteed that the data they are dealing with is ‘proofed’ and cannot be altered in any way once the transaction has been approved. As a result, there are many intrinsic benefits beyond the technical feature.

Blockchain is an open source technology, where other users cannot modify logged data, making it relatively secure. Furthermore, Blockchain reduces transaction costs significantly as does not need third party intervention for faster and more efficient protocols in comparison to traditional financial systems. As Blockchain does not rely on a central data hub is based on decentralisation relying on user-controlled networks simplifying several other management processes. Every movement and data log can always trace back to the point of origin, leading to traceability making investigation much easier. Since records are verified every time they pass from one node to the next, accuracy is guaranteed. With such unique characteristics, Blockchain technology applications can bring enormous benefits to the largest sectors of the economy such as Financial, Energy, Transportation and Logistics.   


It is important to note that Cryptocurrencies at large became a speculative means to utilize blockchain technology but they are not are a requirement for its usage. In other words Blockchain does not need a Token or a coin to exist while the opposite is true.

Blockchain in fact can be classified on the base of its networks in three types: Public, Private and Federated. It is even more important to note that Cryptocurrencies are created through Public Blockchain networks, while the other 2 types of classification don’t event support such speculative means.

Public Blockchains are open and transparent; you can read, write or audit these at any time. A decentralized consensus mechanism is responsible for decision-making since no one is in charge and can be of only two types: The proof of work (POW) and proof of stake (POS). These have no access restrictions and anyone can participate in transactions and validations, hence Public Network. With POS, cryptocurrency miners can mine or validate block transactions based on the amount of coins a miner holds. POS was created as an alternative to POW, which is the original consensus algorithm in Blockchain technology, used to confirm transactions and add new blocks to the chain. POW requires huge amounts of energy, with miners needing to sell their coins to kick the bill; POS gives mining power based on the percentage of coins held by a miner. For such reason POS is considered less risky in terms of the potential for miners to attack the network, as it structures compensation in a way that makes an attack less advantageous for the miner. Bitcoin for example, runs on POW rather than proof of stake. However the vast majority of most innovative projects are now based on POS.

For the benefit of knowledge, we will quickly examine the other two Classification types even though are not utilized for Cryptos with the exception of Ripple (XRP).
Private Blockchains are confined to an individual or organization where an authority is responsible for read/write operations and giving access credentials to other selected users including mining rights. We could refer to Private Blockchains as very safe, cost efficient centralized systems. A bankchain is a typical example of Private Blockchain.
Federated Blockchains have one or more represented by a group of companies or individuals in charges for decision-making. This leads to faster transactions and offers multiple point of failures, thereby preserving data. The member are responsible for making transactions/ decisions. They can read, write, audit and mine data. 

On 12 March 2020, just at the start of the Pandemic, the price of Bitcoin fell by 55 percent from $7,969 to $3,596 lows. Since autumn 2020, the cryptocurrency market has seen a near-continuous bull run that's seen Bitcoin value rise from $10,000 in early October 2020, to an all-time high of $63,350 on April 15, 2021 representing a gain of about +600% in just a six-month span.

Bitcoin wasn’t the only Big Winner.

Today both Bull and Bears would agree that the Crypto Market is at a turning point. It’s true that cryptocurrencies have been on a roller coaster ride since their inception with periods of sudden popularity and retail buying mania, before crashing back down with spectacular sell offs. From a technical analysis perspective, the charts could point yet again at a speculative bubble ready to pop, however this time feels different.