Evolution of cryptocurrency

  • Today, cryptocurrency is emerging into the popular imagination and institutional financial world. However crypto is not yet mainstream because existing solutions are not well enough developed in terms of speed, ease of use, and volatility.
  • The first generation of cryptocurrency was BitCoin, still the best-known and largest crypto. The innovation behind Bitcoin is the blockchain, a distributed ledger that does not need a central authority to stop ‘double spending’ and creates so-called ‘trustless’, censorship-resistant, permissionless, private applications. Once a transaction is confirmed on the blockchain network, it becomes irreversible, a quality known as immutability. This is a stark contrast to previous transaction systems that relied on central trust authorities (banks, etc) where transactions can be reversed, hacked, or changed by the authority.
  • The flaws of the traditional financial systems are based on centralized, bureaucratic models and institutions such as banks and government regulators. This system is based on delivering trust, administration, and regulation but it also creates significant costs, inefficiencies, and limitations to access.
  • The second generation was led by Ethereum which added smart contracts which allowed rules of exchange to be encoded into coins themselves. This led to a huge proliferation of ‘alt currencies’ with different properties built into their smart contracts. However, the first and second-generation cryptos had several drawbacks. In particular, they are highly volatile, often slow, and use huge amounts of energy. ICC is third-generation crypto backed by tangible assets that overcome these drawbacks, delivering stability, speed, and low energy usage.