Читать книгу Cryptocurrency All-in-One For Dummies - Peter Kent, Kiana Danial - Страница 106

Most up-and-running blockchain applications revolve around moving money or other forms of value quickly and cheaply. This includes trading public company stock, paying employees in other countries, and exchanging one currency for another.

Blockchains are also now being used as part of a software security stack. The U.S. Department of Homeland Security has been investigating blockchain software that secures Internet of Things (IoT) devices. The IoT world has the most to gain from this innovation, because it’s especially vulnerable to spoofing and other forms of hacking. IoT devices have also become more pervasive, and security has become more reliant on them. Hospital systems, self-driving cars, and safety systems are prime examples.

Initial Coin Offerings (ICOs) are another exciting blockchain innovation. They’re a type of smart contract that allows the issuer to offer a token in exchange for investment funds. Often used as a non-dilutive fundraising option, entrepreneurs globally have raised billions of dollars. Governments and regulators have been quick to crack down on ICOs. The tokens may be unlicensed securities, and the offering may be defrauding investors. Nonetheless, the technology is impressive even if compliance issues are still being addressed.

One of the fantastic innovations inherent in ICO tokens is that they’re a self-clearing and self-settling instrument. In the current system for trading securities, two types of clearing agencies exist: clearing corporations and depositories. Clearing corporations audit transactions and act as intermediaries in making settlements. Depositories hold securities certificates and maintain ownership records of the securities. Blockchains perform both of these functions for tokens without needing third parties to audit and retain possession of the assets. You can learn more about ICO tokens in Book 4, Chapter 2, and about investing in ICOs in Book 5, Chapter 6.