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Revolutionary Future of Blockchain Technology

The future of blockchain technology is a topic of great interest as blockchain holds the potential to revolutionize the way we store and transfer data, value, and assets online. You may have heard of blockchain in the context of cryptocurrencies like Bitcoin, but its potential goes far beyond that.

Have you ever experienced the frustration of slow and costly international money transfers and wished for a faster and more affordable alternative? Well, this is where blockchain comes in, and that’s just the tip of the iceberg.

In this article, we’ll explore all about blockchain technology and its potential impact on various industries, from finance and healthcare to supply chain and logistics. From increased transparency and efficiency to the potential to disrupt traditional business models, blockchain technology has a lot to offer. So let’s dive in and discover the exciting possibilities in the future of blockchain technology with technological integration and other promising advancements.

Understanding Blockchain Technology

Before diving into the future of Blockchain technology, let’s first understand what blockchain technology really is, its fundamentals, and how it works.

What is Blockchain Technology?

Blockchain is a revolutionary technology that has emerged as a game-changer in online data storage and asset transfer. It is a decentralized, digital ledger that stores data in linked blocks and guarantees the security and fidelity of transactions without the need for a trusted third party like banks.

Fundamentals of Blockchain technology

The fundamentals of Blockchain Technology include Decentralized and Distributed Ledger, Consensus Mechanisms, Cryptography and Security Features, Smart Contracts and their Functionality. Let’s take a closer look:

Decentralization and Distributed Ledger

Unlike traditional centralized systems that rely on a single entity, blockchain operates on a network of computers, known as nodes. Each node maintains a copy of the entire blockchain, ensuring redundancy and eliminating the need for intermediaries. This decentralized nature enhances security, as there is no central point of failure vulnerable to attacks.

Consensus Mechanisms (Proof of Work, Proof of Stake, etc.)

To validate and add new transactions to the blockchain, a consensus mechanism is employed. Two common methods are Proof of Work (PoW) and Proof of Stake (PoS). PoW requires miners to solve complex mathematical puzzles, proving their dedication to the network, and the first one to solve it gets the right to add the new block. PoS, on the other hand, allows validators to create new blocks based on the number of coins they hold, reducing energy consumption compared to PoW.

Cryptography and Security Features

Blockchain uses cryptographic techniques to secure data and transactions on the network. Each transaction is encrypted and linked to the previous one, making it nearly impossible for unauthorized parties to alter the information. Public and private keys authenticate users and ensure secure communication, enhancing privacy and preventing fraudulent activities.

Smart Contracts and their Functionality

Smart contracts are self-executing contracts with predefined conditions written in code. Once the conditions are met, the contract automatically executes, removing the need for intermediaries. Smart contracts allow for trustless interactions and automate complex processes, leading to greater efficiency and cost savings.

How Blockchain Technology Works

How blockchain works step by step — How Blockchain Works Step by Step

Blockchain keeps track of transactions over a network of computers and before being included in a block of transactions, each transaction is examined and encrypted. The term “blockchain” refers to the chain formed when these blocks are joined together.

As a new transaction is made, it is broadcast to all nodes in the network, and each node uses a consensus method to validate and verify the transaction. The transaction after being validated is added to a block with other validated transactions. The blockchain is then updated and all network nodes receive it.

The security of the blockchain comes from its cryptography and decentralization. Since every block is cryptographically connected to the one before it, changing one block would require modifying every other block in the chain, which is practically impossible given the required amount of computer power. Because of this, the blockchain is unchangeable and very difficult to hack or tamper with.

Blockchain Working Mechanism explained in simple words:

To explain Blockchain Technology in simple words, imagine you and your friends want to share a document, like a spreadsheet, but without relying on a central authority or server. You could use a blockchain to do this.

Firstly, everyone in the group makes a copy of the spreadsheet and stores it on their computers. Then, all of them agree to work together to validate any changes made to the spreadsheet. So, when someone wants to make a change, they propose it to the group.

The group checks to make sure that the proposed change is acceptable and if everyone agrees, they add it to their copy of the spreadsheet, creating a new version of the document. This process of checking and adding new versions is repeated each time someone wants to make a change, creating a chain of blocks containing all the changes made to the document.

Each block in the chain contains a unique digital signature, called a hash, which ensures that the data cannot be altered retroactively. Since everyone has a copy of the chain and the hashes are mathematically linked, it is difficult for anyone to manipulate the data without being caught.

Every block in the chain has a special digital signature known as a hash, which makes sure that once the data is stored in the block, it cannot be changed or tampered with. The unique thing about blockchain is that since everyone has their own copy of the chain, and the hashes are linked in a way that makes it almost impossible to manipulate the data without getting caught. So, it’s like having a shared notebook where everyone can see the entries, but once something is written in ink, it can’t be erased or altered without leaving a trace.

Current Applications of Blockchain

Blockchain technology has transcended its initial use case in cryptocurrencies and has found diverse applications including supply chain management and traceability, voting and elections, and electronic health records. Let’s take a closer look at the current applications of Blockchain technology.

Cryptocurrencies and Digital Assets

Cryptocurrencies: Litecoin, Bitcoin and Ethereum

Cryptocurrencies have been the most well-known and widespread application of blockchain technology. Bitcoin, the first cryptocurrency, was introduced in 2009 and has since paved the way for thousands of other digital currencies. These cryptocurrencies operate on blockchain networks, enabling secure and decentralized transactions, free from intermediaries and central authorities. They have gained popularity as an alternative form of money and as an investment asset. Digital assets, such as non-fungible tokens (NFTs), have also emerged as a significant application of blockchain, providing unique ownership and provenance for digital content and art.

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Supply Chain Management and Traceability

Blockchain technology has revolutionized supply chain management by providing enhanced traceability and transparency. By recording every step of a product’s journey on the blockchain, from production to distribution, stakeholders can access a tamper-proof and immutable record. This increased visibility allows for more efficient tracking of goods, reducing counterfeit products and enhancing consumer trust. Additionally, blockchain enables real-time data sharing among relevant parties, optimizing supply chain operations and promoting ethical and sustainable practices.

Voting and Elections

In the realm of voting and elections, blockchain offers solutions to enhance the integrity and security of voting processes. By implementing blockchain-based voting systems, governments and organizations can ensure the immutability of votes, preventing voter fraud and manipulation. Blockchain technology provides a transparent and auditable record of all votes, allowing for a more accountable and trustworthy electoral process. Decentralized voting systems can also increase voter accessibility and participation, as votes can be cast remotely, securely, and anonymously.

Healthcare and Electronic Health Records

The healthcare industry has embraced blockchain to improve electronic health records (EHR) management. With blockchain, patient data can be securely stored and accessed across a network of healthcare providers. This interoperability ensures that medical records are easily and accurately shared between different healthcare facilities, leading to better coordination and continuity of care. Blockchain technology also enhances patient privacy and control over their health data, as they can grant or revoke access to specific information as needed, ensuring compliance with data protection regulations.

Advancements in Future of Blockchain Technology

The future of Blockchain technology is driven by its integration and interoperability with other technologies like Artificial Intelligence, and Internet of Things, opening up many new possibilities. Scalability Solutions and Layer 2 Protocols and, Integration with Web3 and Decentralized Applications (DApps) also play a crucial role in shaping the promising future of Blockchain technology.

Future of Blockchain: Interoperability with other Technology

The future of blockchain technology holds immense potential for advancements and transformative innovations. As blockchain continues to evolve, its interoperability with other cutting-edge technologies will play a crucial role in shaping the digital landscape. In this section, we will explore how blockchain is expected to integrate seamlessly with Artificial Intelligence (AI), the Internet of Things (IoT), Augmented Reality (AR), and Big Data Analytics.

Future of Blockchain with Artificial Intelligence

The convergence of Blockchain Technology and Artificial Intelligence (AI) is set to drive the future of Blockchain Technology and AI alike. Blockchain’s decentralized nature and immutable ledger can address the challenges of data integrity and trust in AI algorithms. By creating transparent and tamper-proof records of data used to train AI models, blockchain ensures the reliability and accountability of AI-generated results. Moreover, blockchain’s data-sharing capabilities will enable AI algorithms to access diverse datasets securely, accelerating the learning process and enhancing the accuracy of AI predictions. The synergy between blockchain and AI is poised to unlock groundbreaking innovations in various sectors, shaping the future of Blockchain Technology.

Future of Blockchain with Internet of Things

In the context of the future of Blockchain Technology, the Internet of Things (IoT) envisions a connected world where devices seamlessly communicate and interact. Blockchain’s potential in the IoT landscape is transformative, providing a secure and decentralized infrastructure for data exchange among IoT devices. As IoT devices collect and share data, blockchain’s tamper-proof ledger ensures the integrity and authenticity of the information. Smart contracts on the blockchain can enable automated interactions between IoT devices without the need for intermediaries, fostering a more efficient and autonomous IoT ecosystem. This symbiotic relationship between blockchain and IoT is a significant driver of the future of Blockchain Technology.

Future of Blockchain in Augmented Reality

The integration of blockchain with Augmented Reality (AR) offers visionary possibilities for creators and users alike in the future of Blockchain Technology. Blockchain’s role in AR revolves around establishing ownership and provenance of digital assets through NFTs (Non-Fungible Tokens). Artists and content creators can tokenize their AR creations on the blockchain, ensuring uniqueness and authenticity. Users, in turn, can confidently own and trade these AR assets, fostering a vibrant and decentralized AR content marketplace. The fusion of blockchain and AR is creating an immersive and secure digital world, paving the way for the future of Blockchain Technology to flourish.

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Future of Blockchain with Big Data Analytics

In the Future of Blockchain Technology, Big Data Analytics holds the key to unlocking valuable insights from vast datasets. Here, blockchain’s role is pivotal, as it offers a decentralized and privacy-preserving data-sharing environment. Blockchain’s transparent yet secure data-sharing capabilities allow data owners to maintain control while contributing to analytics platforms. This approach ensures data privacy and security while enabling efficient and collaborative analysis of big data across industries. The integration of blockchain with big data analytics is a driving force behind the future of Blockchain Technology and its potential impact on data-driven decision-making.

Future of Blockchain with Quantum Computing

In the Future of Blockchain Technology, quantum computing emerges as a game-changer. Quantum computing’s immense power enhances data processing, enabling rapid transaction validation and smart contract execution. To ensure security, quantum-resistant cryptography safeguards blockchain networks from quantum threats. The integration of quantum entanglement bolsters security and decentralization, creating a robust and trustless ecosystem. Collaborative research drives innovation, paving the way for a quantum-ready future of blockchain technology.

Also read: Are Quantum Computers Real? How Can You Access One?

Scalability Solutions and Layer 2 Protocols

In the future of blockchain technology, addressing scalability concerns is vital to unlock its full potential. Scalability solutions and layer 2 protocols like sharding and sidechains offer promising paths towards a more efficient blockchain ecosystem.

Sharding and Sidechains: Sharding involves partitioning blockchain data into smaller fragments, allowing parallel processing of transactions. Sidechains are separate chains connected to the main blockchain, enabling faster and more scalable transactions. These approaches enhance throughput and reduce congestion, paving the way for massive blockchain adoption across industries.
Lightning Network: The Lightning Network is a second-layer protocol that facilitates rapid micropayments on blockchain networks. By conducting off-chain transactions and settling only the final outcome on the main chain, the Lightning Network significantly boosts scalability and reduces transaction fees.

Integration with Web3 and Decentralized Applications (DApps)

Blockchain’s integration with Web3 and decentralized applications (DApps) drives the future of blockchain technology towards user-centric and decentralized experiences.

Decentralized Finance (DeFi) and Decentralized Exchanges (DEX): DeFi applications leverage blockchain’s transparency and smart contracts to offer a wide range of financial services without intermediaries. Decentralized exchanges enable peer-to-peer trading of digital assets, ensuring user control over funds and reducing counterparty risks.
Non-Fungible Tokens (NFTs) and Digital Collectibles: NFTs revolutionize digital ownership, representing unique assets like art, music, and collectibles on the blockchain. NFTs enable provenance, authenticity, and new monetization opportunities for creators in the digital realm.
Decentralized Social Media Platforms: Blockchain-powered social media platforms empower users by giving them ownership and control over their data. These platforms foster censorship resistance, data privacy, and reward content creators directly, revolutionizing the way we interact and share information online.

Also read The New Era of Internet: Web 3.0

Future of Blockchain: Potential and Applications

In the future, blockchain technology will revolutionize various sectors, showcasing its potential for transformative applications.

Blockchain in Finance and Financial Services

Banking and Payments: Blockchain streamlines banking operations and enables faster and secure cross-border transactions, reducing costs and settlement times.
Remittances and Cross-Border Transactions: Blockchain facilitates seamless remittances, making cross-border transactions more efficient and cost-effective.
Securities and Asset Tokenization: Blockchain tokenization democratizes access to traditional assets like real estate and stocks, enhancing liquidity and accessibility.
KYC and AML Compliance: Blockchain’s immutable records enhance Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, improving identity verification and fraud prevention.

Also read: How to be Prepared for the Future of Finance

Blockchain in Education

Credential Verification and Certification: Blockchain ensures the authenticity and accessibility of educational credentials, preventing fraud and simplifying verification.
Secure Storage of Educational Records: Educational records stored on the blockchain are tamper-proof and easily shareable, improving data security and privacy.
Tokenized Learning and Micro-Credentials: Blockchain enables tokenized learning experiences and micro-credentials, empowering personalized education and skill recognition.

Also read: What is Good Education and How to Obtain it?

Blockchain in Healthcare

Medical Records Management: Blockchain secures medical records, allowing seamless and secure data sharing between healthcare providers for improved patient care.
Clinical Trials and Drug Traceability: Blockchain enhances transparency in clinical trials and drug supply chains, ensuring drug traceability and authenticity.
Health Data Exchange and Privacy: Blockchain enables secure and consent-based health data sharing while preserving patient privacy.

Blockchain in Supply Chain and Logistics

Traceability of Goods and Provenance: Blockchain’s transparent ledger enables end-to-end traceability of products, promoting supply chain integrity.
Supply Chain Transparency and Efficiency: Blockchain optimizes supply chain processes, reducing inefficiencies and enhancing transparency.
Counterfeit Prevention: Blockchain combats counterfeiting by creating verifiable records of product authenticity.

Blockchain in Energy and Utilities

Peer-to-Peer Energy Trading: Blockchain facilitates direct energy trading between consumers, promoting renewable energy adoption and sustainability.
Renewable Energy Certification: Blockchain ensures the transparency and traceability of renewable energy sources, validating their environmental impact.
Grid Management and Efficiency: Blockchain optimizes energy grid management, enhancing energy distribution and efficiency.

Blockchain in Government and Public Services

E-Voting and Digital Identity: Blockchain enhances the security and transparency of e-voting systems and digital identity management.
Land Registration and Property Rights: Blockchain simplifies land registration processes, reducing fraud and ensuring secure property rights.
Anti-Corruption Measures and Transparent Governance: Blockchain fosters transparent governance, reducing corruption and promoting accountability.

Challenges in the Future of Blockchain Technology

While the future of blockchain technology appears promising, it also faces several challenges and limitations that require careful consideration and innovation to overcome. These challenges include Scalability issues, High Energy Consumption, Interoperability, Regulatory Compliance, Data Privacy, Security and Vulnerabilities, User Experience, Regulatory Challenges, Education and Awareness, and High costs.

Scalability: Scaling blockchain networks to handle a large number of transactions remains a significant challenge. As adoption grows, blockchain must find efficient solutions to maintain transaction speed and throughput without compromising decentralization.
Energy Consumption: Proof-of-Work (PoW) consensus mechanisms, used in some blockchains, consume vast amounts of energy. The future of blockchain technology necessitates exploring energy-efficient consensus mechanisms to reduce environmental impact.
Interoperability: The lack of standardized protocols and interoperability between different blockchain networks hinders seamless data sharing and communication. In the future, blockchain must foster interoperability to facilitate collaboration between diverse ecosystems.
Regulatory Compliance: Striking a balance between decentralized principles and regulatory compliance is a challenge. Blockchain projects must navigate complex legal frameworks to ensure compliance without compromising decentralization.
Data Privacy: While blockchain offers transparency, it presents challenges concerning data privacy. Striking a balance between transparency and protecting sensitive information is crucial for blockchain’s broader adoption.
Security and Vulnerabilities: Blockchain networks are not immune to security vulnerabilities, such as 51% attacks and smart contract bugs. The future of blockchain technology demands robust security measures to safeguard against potential threats.
User Experience: Improving user experience is essential for mass adoption. Simplifying complex blockchain processes and enhancing user interfaces will make blockchain technology more accessible to the general public.
Regulatory Uncertainty: Evolving regulatory landscapes worldwide may impact the adoption and development of blockchain technology. Regulatory uncertainty poses challenges for businesses and investors seeking to leverage blockchain’s potential.
Education and Awareness: Lack of awareness and understanding of blockchain technology hinder its widespread adoption. Investing in education and raising awareness is crucial to drive broader acceptance and adoption.
Cost and Complexity: Implementing and maintaining blockchain infrastructure can be costly and complex. Lowering entry barriers and simplifying blockchain integration will encourage broader participation.

Addressing these challenges and limitations is vital for the future of blockchain technology to reach its full potential. Innovative solutions, collaborative efforts, and continuous research and development will shape a more inclusive, secure, and efficient blockchain ecosystem.

How to Invest in Blockchain Technology

Why Invest in Blockchain?

Investing in blockchain technology can be a smart move for many reasons, especially when considering the future of Blockchain. This technology operates on decentralized networks, ensuring secure and transparent transactions, which builds trust among users. As blockchain gains momentum, its potential for disrupting various industries becomes evident, offering exciting opportunities for investors. The future of Blockchain looks promising, with the rise of digital assets and decentralized finance (DeFi) platforms, providing potential for significant returns. Its integration with other emerging technologies like the Internet of Things (IoT) and Artificial Intelligence (AI) only amplifies its impact. Including blockchain investments in your portfolio can position you at the forefront of this transformative digital revolution.

Types of Blockchain Investments

There are many types of blockchain investments that you can benefit from, including Cryptocurrencies, Initial Coin Offerings, Security Tokens, Utility Tokens, Non-Fungible Tokens, Blockchain Stocks and EFTs, Decentralized Finance Platforms, Blockchain Real Estate Investments.

Cryptocurrencies: Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized networks based on blockchain technology. Investors can buy, hold, and trade cryptocurrencies like Bitcoin, Ethereum, Ripple, and many others on cryptocurrency exchanges.
Initial Coin Offerings (ICOs): ICOs are fundraising events conducted by startups to raise capital for their blockchain-based projects. During an ICO, investors purchase tokens or coins issued by the project in the hopes that their value will increase as the project progresses.
Security Tokens: Security tokens represent ownership of assets or shares in a company and are regulated by financial authorities. These tokens offer investors a stake in the underlying asset or company and can provide dividends or profit-sharing.
Utility Tokens: Utility tokens are used to access a specific product or service offered by a blockchain project. They provide users with access to the platform’s features and functionalities.
Non-Fungible Tokens (NFTs): NFTs are unique digital assets that represent ownership of a specific item, artwork, or collectible on the blockchain. NFTs have gained popularity in the art and gaming industries.
Blockchain Stocks and ETFs: Some traditional companies, especially in the financial and technology sectors, have invested in blockchain technology or adopted it in their operations. Investors can buy stocks of these companies or opt for exchange-traded funds (ETFs) that focus on blockchain-related companies.
Decentralized Finance (DeFi) Platforms: DeFi platforms offer various financial services without the need for traditional intermediaries like banks. Investors can provide liquidity to these platforms and earn returns through yield farming or lending.
Blockchain Real Estate Investments: Some platforms allow investors to buy fractional ownership of real estate properties through blockchain technology. This enables individuals to invest in real estate with lower capital requirements.

Steps to Start Investing in Blockchain Technology

Starting to invest in blockchain technology can be an exciting journey. Here are the steps to get you started:

Educate Yourself: Begin by understanding the fundamentals of blockchain technology, how it works, and its potential applications. Learn about various cryptocurrencies and blockchain projects.
Set Investment Goals: Determine your investment objectives, whether it’s long-term growth, diversification, or short-term gains. Clarifying your goals will guide your investment decisions.
Research Investment Options: Explore various types of blockchain investments, such as security tokens, utility tokens, initial coin offerings (ICOs), decentralized finance (DeFi) projects, and blockchain-based stocks.
Evaluate Legal and Regulatory Factors: Understand the legal and regulatory landscape surrounding blockchain investments in your region and the regions of the projects you consider.
Start Small and Diversify: Begin with a small investment to familiarize yourself with the process. Consider diversifying your investments across different cryptocurrencies and blockchain projects to spread risk.
Conduct Research: Thoroughly research blockchain projects before investing. Examine factors such as the team’s expertise, technology, real-world use case, and community support.
Stay Informed: Keep abreast of the latest news, trends, and developments in the blockchain space. Stay connected to reputable sources for reliable information.
Practice Risk Management: Only invest what you can afford to lose. Blockchain markets like cryptocurrencies can be volatile, so it’s essential to manage risk and avoid overextending your investments.

Blockchain Alternatives and Competitors

Blockchain Alternatives and Competitors include Hashgraph, Tangle, DAGs (Directed Acyclic Graphs), ILPs (InterLedger Protocols), and Holochain. These technologies offer potential solutions for achieving decentralization, security, and transparency in digital transactions, expanding the possibilities beyond traditional blockchain systems.

Hashgraph Meaning

Hashgraph is a Distributed Ledger Technology(DLT) with unique consensus algorithm that claims to offer faster transactions with greater security and scalability.

Hashgraph Vs Blockchain

The major difference between Blockchain and Hashgraph is that they both have their own consensus algorithms. Other differences includes the level of decentralization, networks, and efficiency with Blockchain being more open-sourced and established network, while Hashgraph being more faster, secure and efficient.

What is Holochain?

Holochain is a decentralized network for building peer-to-peer applications allowing for fast, efficient, and secure transactions among network nodes without the need of central authority and is another one of the major blockchain alternatives.

Holochain Vs Blockchain

The major difference between Blockchain and Holochain is how they store and process data. Blockchain stores data in linear chain and requires all nodes to validate transactions in wide and established way, while Holochain stores data in distributed hash table and involves only the nodes affected by the transactions in flexible and scalable way.

Is Blockchain the future? Will other technology replace blockchain?

The future of Blockchain technology remains promising, as it continues to revolutionize various industries with its decentralized and transparent nature. While blockchain has shown immense potential, it may not be the only technology to shape the future. There are emerging blockchain alternatives like Hashgraph, Tangle, DAGs, ILPs, and Holochain that offer unique features and improvements over traditional blockchain systems. However, the choice remains in user’s specific needs and use cases as blockchain have its own applications where data immutability and security are critical while Holographs, Holochain and others offer fast and efficient transactions.

Key Takeaways: Future of Blockchain Technology

The future of blockchain technology holds exciting possibilities and potential advancements that will reshape industries and economies. As blockchain evolves, scalability solutions like sharding and layer 2 protocols will enhance its efficiency and accommodate higher transaction volumes. Interoperability protocols will foster seamless communication between different blockchains, creating a unified ecosystem.

Moreover, blockchain’s integration with emerging technologies like Internet of Things (IoT), artificial intelligence (AI), Augmented Reality, Quantum Computing, and Big Data Analytics will unlock new applications and use cases. Smart contracts will automate complex processes, revolutionizing supply chain management, legal agreements, and more.

The future of blockchain technology is brimming with possibilities, and the journey towards a decentralized and interconnected world has just begun. Embrace the change and be a part of shaping this exciting future!

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FAQs

Is Blockchain Illegal?

Blockchain technology, apart from being used in cryptocurrencies, is still a new concept in the market. As of now, several countries, including the US, Canada, and the EU, have legalized cryptocurrency. However some countries, such as China, Qatar, and Saudi Arabia, have completely banned it.

Is Blockchain better than Artificial Intelligence (AI)?

Blockchain and AI are different technologies with different applications. It’s not a matter of one being better than the other, but rather how they can be used together to create innovative solutions.

What will be the future of blockchain technology?

The future of Blockchain technology is expected to revolutionize industries, enhance security, and enable decentralized applications, fostering a more transparent and efficient global ecosystem.

How to invest in Blockchain without buying Bitcoin?

You can invest directly in the companies that use or develop blockchain technology, buy blockchain-based ETFs or mutual funds, or invest in cryptocurrencies other than Bitcoin that use different blockchain technologies.