Technology has made revolutionary changes and will continue to make changes in the world we live in today. After multiple research and developments, errors and overcoming various challenges, an innovative idea turns into a unique technology. In the current scenario, the demands of customers are increasing to get better quality, efficiency, safety and affordable pricing of the products and services provided by the organizations. Technology can play an important role to improve the strategic planning and functionality of businesses to fulfil these customer needs. Technological base and foundation has an impact on the performance and customer relationships of a business. Technology has become a part of an individual’s lifestyle; constant efforts are being made to turn everything to digital. Over the years, technology has a great influence on the methods of payments, beginning from barter system to paper currency and even plastic money, which is most commonly used in this generation. However, the latest invention of payment method was developed by Satoshi Nakamoto in 2008 called Blockchain technology. It is a digital approach to dispatch payments between two parties without the need for verification of the transaction by an outsider.

Blockchain is a common database loaded with transactions that is changed to a verified code to prevent unapproved access. Thus, it is a confidential and secret way of conducting transactions. The simplicity and security of the blockchain technology has attracted itself towards various businesses. Blockchain technology can be used by organizations as an option in contrast to the banking procedures, for digitally sending and receiving payments. These payments are made in the form of digital money which are referred to as cryptocurrencies. Cryptocurrency uses cryptography which is a process that converts simple texts into an incomprehensible language. Cryptography ensures the safety and security of the transactions. This language can only be cracked by the party for whom the cryptocurrency transaction has been initiated. Cryptography mainly consists of mathematical theories. Just like different countries have different paper currencies, there are many types of cryptocurrencies, but they don’t differ according to countries. Some examples of cryptocurrencies are as follows: Bitcoin Cash, Zcash, Ethereum, Ripple, Cardano, Litecoin, etc. However, currently the most recognized cryptocurrency is bitcoin.

The quantity or number of cryptocurrencies cannot be produced on a random basis, there is a mechanism to be followed to produce them. Generally, the quantity is determined by figuring out how many blocks of transactions will an individual find out or ‘mine’ each day. For example, according to Nakamoto, 21 million will be the maximum number of bitcoins to be ever produced. The theory is set in such a way that Bitcoin will never face the issue of inflation. However, one of the threats for Bitcoins is that if they become a victim of cybercrime they will have no value which will lead to shocking economic circumstances. The way towards mining Bitcoins is not as simple as it appears. Challenges of mining not only involves getting through the mathematical equations but also able to survive the increasing number of miners which makes the mining procedure more troublesome. In order to work around this increasing difficulty of mining cryptocurrencies, it is recommended to work by forming teams. Team work will split the difficulty among the members and it will help the miners to get faster and productive outcomes.

Apart from Bitcoins, the second most recognized cryptocurrency is Ethereum. Trading is not an important feature of Ethereum, its major focus is on bankrolling, election polls, surveys and insurance. Even this currency is formed by cryptography and is highly secured as it is based on blockchain technology. Furthermore, one of the greatest difficulties for blockchain technology is the lack of understanding and trust in the society as weakly written codes may not form a solid base leading to great losses. However, being on the optimistic side there are tons of opportunities for improvement of the blockchain technology as this is just the beginning. Businesses will be willing to invest for further research and development of the blockchain technology as it benefits them in saving time, cutting costs and enhancing security in their transactions.