All you need to know about Cryptocurrency, Blockchain, and Smart Contract

It’s no longer a strange phenomenon to hear some terms such as Cryptocurrencies, Blockchain, and Smart Contract in the world of digital finance today. These are just a few examples of how our world has been reshaped to conform to the progress in technology in order to make the world a better place for all.
Cryptocurrency is a form of digital or virtual money. Of course, Cryptocurrency is a blend of “cryptography” and “currency” and cryptography involves conversion from ordinary plaintexts to unintelligible texts, vice-versa.
Taking the concept of cryptography to the world of finance, Cryptocurrency is designed to be a medium of exchange that uses cryptography to secure its transactions. It’s a decentralized digital cash flow system that is immune against government influence and manipulation. Examples of Cryptocurrencies include Bitcoin, Ethereum, Ripple, Litecoin, Monero, etc with Bitcoin remaining the most popular and most important Cryptocurrency in the world.
However, for any Cryptocurrency to be transferred between two parties, it requires a digital channel which is known as Blockchain. Blockchain simply means chain of blocks and it can be defined as a shared database that is populated with massive entries that must be confirmed and encrypted.
This technology was invented and made public by a mysterious person or a group of people known as Satoshi Nakomoto in 2009 and it was basically designed as a means of digitally and anonymously sending payments between two parties without needing any third party to verify the transaction.
In essence, Blockchain was designed to facilitate, authorize and verify the transfer of Bitcoins and other Cryptocurrencies by removing all the restrictions and unnecessary charges associated with traditional online transactions.
One of the many ways in which Blockchain can be used is in the area of Smart Contract. In 1994, Nick Szabo, a legal adviser and cryptographer discovered that Blockchain can be used for Smart Contract which is otherwise known as self-executing contract or digital contract. This technology removes all forms of difficulties associated with traditional way of handling contracts.
By using this technology, contracts are converted to computer codes which are stored and replicated on the system and then supervised by a network of computers that runs the Blockchain. The idea behind Smart Contract is to allow two permitted parties to transact directly without involving any intermediary. It is premised on If-Then principle. For instance, party A is entitled to this and this if they meet certain conditions. It can be used for legal contract, payment of premium, house rent, etc. Transactions take place in a conflict-free and transparent manner.
In conclusion, Cryptocurrency, Blockchain and Smart Contract have revolutionized the way businesses are conducted. Transactions are made digitally and anonymously in a more secure way. However, it’s important to note that this technology also makes it easy to engage in illicit transactions or make payments for black markets. Nevertheless, the advantages of Blockchain seem to outnumber its criticisms.