What Is the Blockchain Ecosystem?
Blockchain is a decentralized system that is not controlled by a third part. It has different types and each is designed for a specific purpose. Blockchain Ecosystem means a group of people that indirect with each other to create a special environment
Blockchain technology will soon create a big revolution in the financial field and social and political transparency. Blockchain is a decentralized system that is not controlled or overseen by any country or government. This has led to its having some amazing capacities. These vast capacities can be used in transferring foreign bills to providing health care. However, when we say the Blockchain ecosystem, what do we really mean?
Blockchains are like roads. Just as roads have different types, Blockchains have different types as well and are not limited to one specific type. Each Blockchain network is designed for a specific purpose and in addition to that includes independent elements that form a special ecosystem next to one another. When we say Blockchain ecosystem, we mean a group of elements that interact with each other and the world around them to create an environment with special features.
For example, the cryptocurrency ecosystem based on Blockchain has four parts or elements: the users that use cryptocurrencies to receive and send currency, cryptocurrency miners that produce the cryptocurrency, investors that buy cryptocurrency, and the developers that write programs related to this system and network and develop it. No part of this system can continue working without the other.
In the following parts, the elements of the cryptocurrency ecosystem will be addressed. This ecosystem offers a complete example of the Blockchain ecosystems:
1. Users in the Blockchain Ecosystem
Users are normal people that use Blockchain and cryptocurrencies such as Bitcoin for their different purposes. For example, these people like to engage in a sort of micro-investing by buying and holding on to cryptocurrencies. Buying and selling cryptocurrencies can also be another reason as to why people use Blockchain. Among the well-known cryptocurrencies that users buy them for many purposes are Bitcoin, Ethereum or Litecoin.
2. Investors in the Blockchain Ecosystem
Investors form a large part of the Blockchain ecosystem. This part of the Blockchain environment looks for small and large scale planning for the future. In getting counsel with skilled experts in this field, they have figured out that in the future the investment capacity of Blockchain will be much more than today. These people want to invest their money in different projects for the booming of the Blockchain and in order to gain huge profits.
3. Miners in the Blockchain Ecosystem
In order for the Blockchain system to work properly and for its integrity to be preserved, there is a need for a large network of independent users across the world that are active in this system consistently. In public Blockchains, any user can be in the Blockchain network and appear as a Bitcoin or other cryptocurrency’s miner. In the mining process, miners confirm the transactions that have taken place on the Blockchain infrastructure and add new data of a transaction to the Blockchain network infrastructure. Miners should identify the encryption used in transaction data. They compete with other miners to decrypt the codes of each transaction. Any miner that can decrypt the transaction faster will gain a part of the transaction as a reward.
4. Developers in the Blockchain Ecosystem
As it was mentioned earlier, Blockchain has different types. Developers are those that work on the already existing programs on the Blockchain infrastructure. Some of them develop applications based on Blockchain and write programs that have different purposes and offer different services in various fields via Blockchain to users all across the world. In short, developers work toward making the Blockchain system more practical and improve this network regarding structure and function.
Blockchain Ecosystem in the Future
World Economic Forum has predicted that only until five years later more than 10 percent of the global GDP will be stored on Blockchain infrastructure. Different projects that revolve around cryptocurrency and Blockchain are being developed all across the world. In the near future, these projects will be operationalized, and financial technologies will enter a new era of huge capabilities.