Here are the key ideas that you must take away from this week:
Digital currencies have changed the financial sector forever. They have the potential of influencing the ways banks operate on a global scale. New digital currencies are being created to operate in very specific applications, such as energy trading, or incentivizing certain behaviors. One example that we have seen during this unit is SolarCoin.
Blockchain is the natural evolution of centralized organization systems, the old conventional methods that completely rely on centralized authorities. This new paradigm gives power and decision-making capacity to the users, eliminating unnecessary middlemen and unjustified transaction fees.
Blockchain raises the security of the systems, allowing the users to step forward and take control over the system’s safety. All of it, without the need of a centralized authority.
Blockchain figured out the way in which users themselves can decide about the validity of a transaction. Current algorithms require huge amounts of energy to work, so research is now focused on finding new effective ways of carrying out these processes in more sustainable ways from the energy point of view.
Share your thoughts in the comments!
© EIT InnoEnergy