The remarkable recent rise in the price of Bitcoin has reignited the imagination of many investors, but blockchain technology is not just about money. In this article, we will take a look at the significant impact this revolutionary technology will have on classic web hosting services.
The concept of cryptocurrency is not rocket science. In fact, this medium of exchange is no more complicated than conventional currency. However, it still requires a secure and trusted environment in which it can operate, and this is provided by blockchain.
What is Blockchain? There are many misunderstandings associated with it, but, for the purposes of this article, we’ll define it simply as a distributed spreadsheet. We are all familiar with Excel or Open Office spreadsheets, but what makes blockchain interesting is the way it is distributed.
Similar to torrent files, blockchain is a peer-to-peer network where there is no need to ensure trust between parties. Thanks to modern cryptography, trust is maintained at the level of the individual record, rather than the party hosting it.
OK, so now we understand the basics of the cryptocurrency revolution, but how, we might ask, does it affect web hosting services? Basically, in its simplest form, it will suggest selling your services not only in your local currency, but also in Bitcoin and other cryptocurrencies.
However, this is not the end of the revolution. Electronic wallets are required to handle Bitcoin and other digital currencies, and thus have huge potential for traditional web hosting vendors. If your customers trust you and you host their sites, why not host their electronic wallets?
Every operation in cryptocurrency is an actual 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 factor is important to fully understand the impact of blockchain on your web hosting business.
That said, blockchain isn’t just about money. New versions of its protocols also allow for the execution of any type of contract between the parties, be it a subscription to cable television or indeed any other bill. They need to be stored somewhere and web hosting companies have a place to be involved.
Wallets are thus key to harnessing the full potential of blockchain. Once you understand this, what should be your next steps?