The significant recent rise in Bitcoin prices has revived the imagination of many investors, but blockchain technology is not just about money. In this article, we will look at the significant impact that 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 complex than conventional currency. However, it still needs a safe and reliable environment where it can work and it is provided by the blockchain.
What is a blockchain? There are many misconceptions related to this, but, 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 what makes Blockchain so attractive is the way it is distributed.
Like torrent files, blockchain is a peer-to-peer network that does not require trust between parties. Thanks to modern cryptography, trust is maintained at a single record level rather than the hosting party.
Okay, 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. An electronic wallet is needed to manage Bitcoin and other digital currencies, and thus the huge potential for traditional web hosting vendors. If your customers have trust and you host their site, why not host their electronic wallet?
Each operation in cryptocurrency is a de facto transaction between two electronic wallets. Each exchange is maintained through a wallet and you can 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 is not just about money. Newer versions of its protocols also allow the parties to execute any type of agreement, be it a television subscription or actually a bill. They need to be stored somewhere and there is a place for web hosting companies to get involved.
Thus the wallet is the key to fully exploiting the potential of the blockchain. Once you understand this, what should be your next steps?