The notable recent increase in Bitcoin prices has rekindled the imagination of many investors, but Blockchain technology is not merely about the money. In this article, we will take a look at how significant an 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 traditional currency. However, it nonetheless needs a secure and trusting environment in which it can operate, and that is provided by Blockchain.
What is Blockchain? There are many misunderstandings relating to it, but, for the purposes of this article, we will simply 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.
Just like the files in Torrent, Blockchain is a peer-to-peer network where it is not necessary to ensure trust between parties. Thanks to modern cryptography, the trust is instead maintained on the level of a single record rather than the party hosting it.
Okay, so 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 would suggest not only selling your services in your local currency, but also in Bitcoin and other cryptocurrencies.
However, this is not the end of the revolution. Bitcoin and other digital currencies need electronic wallets to operate, and there is thus huge potential for traditional web hosting vendors. If you have the trust of your customers and are hosting their sites, then why not host their electronic valets?
Each operation in cryptocurrency is a de facto transaction between two electronic valets. Every exchange is maintained through the wallet and you can also provide an interface for your customers to access it. This factor is pivotal in order to fully understand the impact Blockchain can have on your web hosting business.
This said, Blockchain is not only about money. The newest versions of its protocols also provide the opportunity to enact any form of contract between the parties, whether this is a subscription to cable television or indeed any other type of bill. They all need to be stored somewhere, and there is a place for web hosting companies to be involved.
The wallet is thus the key to fully utilizing the potential of Blockchain. Once you understand this, what then should be your next steps?
