2019 has seen a big rise in the value of cryptocurrency. One of the biggest drivers in this growth has been the beginning of the institutional investment. These institutional investors, such as banks, business and universities had always been wary of investing in cryptos because of their apparent volatility, until now.

One of the keys to investment is if the product is a safe place to invest during turbulent economic times. Gold is probably the best example of such a safe haven. However, with the US-China trade war and Brexit causing havoc on the markets, cryptocurrencies have begun to be seen as such a safe haven.

Educational institutions such Havard and Yale have been reported to have invested tens of millions of dollars in to crypto funds, and with a whole host of banks and technology firms working to improve Distributed Ledger Technology (which the DAG-chain is based on), this is only set to continue to increase.

In this week’s blog post we will look at the technologies and investments that are driving this growth and what it means for all of us.

To Decentralize or Centralize

Decentralization was and remains one of the key principles for many cryptocurrencies. This decentralisation aims to take control of our money back from governments and/or banks and give it back to us, the individuals. This is because at any time, for example, a bank has the possibility to close our accounts or withdraw funds, sometimes without reason. In such an incidence it may take many days, weeks or even months to regain access to your account or money if you do at all. Likewise, if a bank goes bust your money may also be lost. In turn, governments also have this power to seize assets. With a decentralized currency, your money cannot be taken.

However, today, governments, banks and tech giants are starting to realise the potential of the Distributed Ledger Technologies such as the Blockchain and DAG-chain. As a result, they are developing ways in which technology can be adapted to suit large corporations and governments. This has led to the development of the first centralized cryptocurrencies, Ripple, Stellar and EOS.

Let’s take Ripple as an example. What ripple very simply tries to do is link together centralised banking networks to speed up transactions. Currently, it still takes 3-5 days to send a bank transfer between banks that are in different centralised systems (for example, different countries). What Ripple does is link these separate networks, making it possible to send and receive payments in less than 5 seconds.

But, it is not just cryptocurrency creators that are using Distributed Ledger Technologies to improve business and banking globally.

The Technology is Coming

The Blockchain and DAG-chain are just two forms of something known as Distributed Ledger Technology (DLT). Very simply, DLT gives control over all data and/or transactions to the users of the service or currency. It is this taking back control over the personal information that is – as discussed above – one of the fundamental principles of many cryptos.

Did you know that Chinese tech giant Alibaba has filed the most blockchain related patents? Closely followed by IBM, with 90, and 89 respectively. Just below these mega-corporations in the list are Mastercard, Bank of America and the Peoples Bank of China. The last being extremely interesting as the Chinese government has placed a complete ban on cryptocurrencies.


For example, IBM has stated that 6 banks will shortly release their own cryptocurrencies (stablecoins) based on its Stellar Network technology. This announcement, in March, came just one month after JP Morgan Chase announced the release of its JPM coin. The first US bank backed cryptocurrency. Even though it will be used initially for just a tiny fraction of the banks $6 trillion of daily transactions.

This is just the tip of the iceberg. Other banks such as Citigroup and Barclays are also working on their own DLT solutions. It is these advances in technology and use of it that have also had a big influence on the increasing interest in and value of crypto this year. The reason for this being the potential these huge corporations and banks are seeing in the technology and the widespread use cases it has for all of us.

What it Means for You

Even if you, your friends or family members never own or use crypto, the technology they are based on is sure to have an impact on your life far beyond the financial services you receive from your bank, as described above. When you consider that Walmart, Google, Sony and Intel are also working on solutions based on distributed ledger technologies, you can begin to see the possible applications for the technology outside of the financial sector.

If we take Walmart as an example. They have filed a patent for autonomous robots that operate based on DLT technology to speed up supply chain processes. This kind of advancement is part of an ongoing war with Amazon and other large stores to speed up the supply chain and delivery process. Getting those products we want, to us as quickly as possible. It’s crazy how much we have come to depend on the next day or even same day delivery over the last few years!

In addition, Google is currently using DLT to build cloud solutions for governments and non-profits. This is all despite blocking crypto related ads back in June 2018, indicating a change in tune for the company and its view on crypto. Many see this change in heart as not wanting to be left behind by their competitors

Conclusion

2019 has seen a big resurgence in cryptocurrency. There have been two main factors causing this:
Institutional Investment – Banks, companies, and even educational institutions are investing heavily in cryptocurrency. Harvard and Yale have invested tens of millions of dollars in to crypto funds, while JP Morgan Chase have even released their own coin, JPM coin. More than half a dozen other banks are set to release their own coins in the very near future.

New Technology – Tech giants like IBM and Alibaba are leading the way with the most blockchain related patents with 89 and 90 respectively. These firms show you that it is not just the financial field where this DLT based technology can be used. For example, Walmart is using this technology to produce robots that will help to speed up the delivery process.

It is an exciting time to part of the cryptocurrency world, and when you consider the benefits that DAG-chain technology has over the blockchain. The possibilities Dagcoin has are immense.