Can Blockchain Be Used Without Cryptocurrency?

What is Blockchain without Cryptocurrency?

A blockchain without cryptocurrency is actually a distributed ledger where data is stored that is associated with NFTs, supply chain initiatives and even the Metaverse.

Sure, the BTC is one of the most popular applications of any decentralized ledger. There are plenty of uses of blockchain technology, such as financial services like remittances, digital assets, online payments and more, as it allows streamlined payments that are settled without the need for any bank or digital middleman.

It also helps in the internet interaction systems such as smart contracts, public services, IoT, security services and reputation systems that are quite promising in the cryptocurrency space.

A blockchain without cryptocurrency keeps a consistent track of all the statuses of the databases across numerous users. The database includes the history of cryptocurrency transactions that are directly related to elections which can neither be updated or deleted once added.

Hence, we can claim that blockchain technology is quite relevant to cryptocurrencies. However, the main goal of the decentralized storage of information and the consensus of digital ascites is possible only with cryptocurrencies. So, what about the uses of blockchain?

Ideally, blockchain technology has a massive potential to replace the business models that usually rely on third parties and other centralized systems for trust, such as NFTs that were initially introduced on the ETH network in 2017 and others.

Does a Blockchain need Cryptocurrency to work?

The only thing you need to know here is that only the public blockchain needs cryptocurrencies to function, while the other private blockchains have nothing to do with cryptocurrencies.

The public blockchains do not need any permission whatsoever, which means anyone can join the network without any hindrance and participate in the blockchain. On the other hand, private blockchains lack decentralization and result in only invitation-only networks that are run by a single organization.

A common example of permissionless blockchains has to be Bitcoin Blockchain, wherein the reward network participants are called miners that usually solve complex puzzles. They are offered incentives in the form of the network’s native token, being a common motivator for the system and achieving consensus.

Private blockchain includes Hyperledger and Corda, wherein the distributed ledgers support confidential commercial transactions. These are intended for companies that wish to develop interoperable distributed networks with private transactions. These neither have a mandate nor even require cryptocurrencies to power or even incentivize members on the network that manage the private blockchains.

Can you invest in blockchain without buying Cryptocurrencies?

There is never a direct way to invest in blockchain. Investing in blockchain-based startups is a common way wherein you can easily explore the blockchain beyond cryptocurrency investments.

There are plenty of new opportunities for users and organizations that streamline corporate procedures, speed up the transactions or even improve security and transparency by using blockchain as a service(BaaS). You can even invest in companies offering BaaS, such as IBM and Microsoft, to analyze blockchain technology.

Another easy way is to buy stocks of any company that has a developing venture of blockchain solutions, as this will bring even exposure to the distributed ledger technologies without the possibility of cryptocurrency investments.

The supply chain is another area wherein there could be a significant impact. For example, there could be a crop back to the farm as it was grown with any immutable public record of every transaction.

There are plenty of direct or indirect ways of investing in blockchain-based startups. However, be always aware of the risks of technical glitches, hard forks or even human errors. Never ever risk more than you can even afford to lose without investing in blockchain technology.

Can Smart Contracts Exist without Blockchain?

Blockchain technology is always necessary for smart contracts to function as this enables automated agreements for investors to be conducted and carried out with ease. There would be no involvement of any third-party users here. This makes the entire process super seamless.

Just like smart contracts, database systems can even have self-executing components such as triggers and stored procedures for investors. However, they cannot enforce immutability as anyone with administrator rights can undo any transaction, purge transaction logs, etc. this can affect the entire process. Blockchain will always be needed for smart contracts as there is always a safe and tamper-proof requirement for the users. However, complicated smart contracts are never supported by BTC, the most reputed and popular cryptocurrency.

Hence, without blockchain, no other contemporary technology needs blockchain oracles that call off-chain data that is readily pushed to the distributed ledger at every predetermined time. Also, it may even create a possible point of failure that is very common within most blockchain technology transactions. Hence, this is a widely adopted choice to address the problems related to cryptocurrency requirements.

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