The significant recent rise in the price of Bitcoin has revived the imagination of many investors, but blockchain technology is not just about money. In this article, we take a look at how this revolutionary technology will have a significant impact on classic web hosting services.
The concept of cryptocurrency is not rocket science. In fact, this medium of exchange is no more complex than conventional currency. However, it requires a secure and reliable environment where it can operate and it provides blockchain.
What is a blockchain? There are many misconceptions about this, however, for the purpose of this article, we will only define it as a distributed spreadsheet. We are all familiar with Excel or Open Office spreadsheets, but how the blockchain is distributed is so interesting.
Similar to torrent files, blockchain is a peer-to-peer network where there is no need to ensure trust between the parties. Thanks to modern cryptography, trust team will be maintained at the level of single record instead of hosting.
Okay, so now we understand the basics of the cryptocurrency revolution, but how can we ask, does it affect web hosting services? Basically, in its simplest form it is advisable to sell your services not only in your local currency, but also in Bitcoin and other cryptocurrencies.
But this is not the end of the revolution. Electronic wallets are needed to manage Bitcoin and other digital currencies, and this is a huge potential for conventional web hosting vendors. If your customers have confidence and are hosting their sites, why not host their electronic wallets?
Each activity in cryptocurrency is a de facto transaction between two electronic wallets. Each exchange is maintained through a wallet and you can also provide an interface for your customers to access it. This element is important to fully understand how blockchain can affect your web hosting business.
That said, blockchain is not just about money. The latest versions of its protocol also allow both parties to legislate some sort of agreement, whether it’s just a television subscription or actually some other bill type.
The wallet is thus the key to fully exploiting the potential of the blockchain. Once you understand this, what should be your next steps?