Blockchain and crypto for dummies
You have probably heard of it: blockchain and crypto currency. These terms became widely used almost overnight and have become part of our everyday vocabulary. But... what exactly is it all about?
Arthur Janse, Fintech lecturer and trailblazer of the Blockchain research group, knows all about these concepts and explains them below, so that you can tell your friends about it at upcoming birthday parties or in the pub!
What is blockchain?
Blockchain is software that everyone can run to share a common database. This database allows you to safely store and share data, which makes it possible to send money directly to other people.
You can also use blockchain to give price comparison engines temporary insight into your salary, so that the search engine can, for example, find a suitable loan for you.
Okay, and what about the term crypto currency?
In simple terms, crypto currency is self-made money that is encrypted (crypto).
As long as people believe that this money has value, it will keep its value. Similar to our own euro, only this time completely digital, encrypted and self-made.
I think it's a fantastic medium that, because it is relatively new and successful, has got many people's hearts racing. I especially like the fact that the internet's promises can be fulfilled; If it is digital, you can control it and share it directly with anyone. Without the intervention of others. Your passport, your medical details, your CV, the machines bought by a factory, your surfing behaviour on the internet, everything digital. Fantastic!
In the classroom
The School of Finance and Accounting, where Arthur works, offers minors in Business Models, FinTech and Blockchain.
Additionally, workshops are organised to train people in this area. Not only for students, but also for lecturers and companies!
"The focus is mainly on digital data: what are digital data, how do we manage these data, and what do we need to know about digital data. This includes themes such as cloud computing, big data, artificial intelligence, business analytics, database management, and much more!"
The theme 'Bitcoin’ is booming
And Arthur knows why: "Since the arrival of the internet there have been many developments, but so far we have not been willing or prepared to exchange really sensitive information or valuable things directly. This traditionally required an intermediary or third party, e.g. banks providing payment transaction services. In the (recent) past, banks and governments have made mistakes in the eyes of a few software developers. So they started looking for a smart solution. And came up with the Bitcoin."
More than a currency
It soon became clear that, as a technology, Bitcoin had more potential than just serving as a currency. The entire internet could run on it, and blockchain could finish what the internet set out to do in the first place; share all information directly and securely with each other.
A new, promising technology offering a plethora of opportunities and possibilities. This already inflated the Bitcoin bubble to some extent. But the bubble became seriously inflated when the economy started to pick up and people did not want to keep their money in a savings account because of the extremely low interest rates. They wanted to invest.
Thanks to blockchain, anyone in the world with access to a computer and the internet was able to invest in a global tech. When share prices started to rise, people were afraid of missing the boat and the bubble became bigger and bigger...
Make sure you switch to new technology on time
There is so much going on, developments progress rapidly. Not only with regard to blockchain, but also in robotics, artificial intelligence, nanotech, quantum computing...
Arthur's advice: keep a close eye on developments and especially read the articles that tell you what the practical consequences of certain developments will be. Blockchain is not a stand-alone phenomenon, it can only work really well in combination with other technologies such as the internet and smartphones.
But make sure you know what may be in store for you, and that you switch to new technology on time once it has started making an impact and you are expected to 'respond’ to it professionally or in a company for example.
A look at the future
You should have some clue by now of what blockchain and crypto currency refers to. But where do we go from here?
Arthur presents his views: "Crypto currencies like Bitcoin can already be used, and independent developers, large and small companies, universities and governments are working on and developing lots of new ideas. So there will be plenty of new products on the market. However, it will take time to properly test these products and prepare people for the new developments. It will maybe take a few more years, but I am sure that when you look back 20 years from now you will think: 'wow, what an impact this development has had'. Just like with the rise of the internet at the time. Even though you may not always realize that it was blockchain or crypto currencies that made the difference. “