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 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 means of exchange is no more complicated than traditional currency. However, it needs a safe and secure environment in which to operate, and this is provided by Blockchain.
What is Blockchain? There is a lot of confusion surrounding it, but for the purposes of this article, we’ll just refer to 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.
Just like torrent files, Blockchain is a peer-to-peer network where there is no need to provide trust between parties. Thanks to modern cryptography, trust is instead maintained at the level of a single record, rather than the party hosting it.
Okay, now we understand the basics of the cryptocurrency revolution, but how, we may ask, does it affect web hosting services? Essentially, in its simplest form, this involves not only selling your services in local currency, but also in Bitcoin and other cryptocurrencies.
However, this is not the end of the revolution. Bitcoin and other digital currencies require e-wallets to operate, and thus there is huge potential for traditional web hosting providers. If you are trusted by your clients and host their sites, why not host their e-valeries?
Every cryptocurrency transaction is a de facto transaction between two electronic valets. Every exchange is supported through a wallet, and you can also provide an interface for your customers to access it. This factor is key to fully understanding the impact of blockchain on your hosting.
However, Blockchain is not just about money. The latest versions of its protocols also allow for any form of contract between the parties, be it a cable TV subscription or any other type of bill. They all have to be stored somewhere, and there is a place for web hosting companies to participate.
Therefore, the wallet is the key to fully exploit the potential of Blockchain. Once you understand this, what should your next steps be?