In today’s world it is nearly impossible not to have heard about Bitcoin and the technology it is based on: blockchain. Many times the natural reaction to any new technology is some doubts and opinions which say that this is just a fashionable term and it is not going to be widespread – it is no different in the case of blockchain, either.

However, many sectors and generations were represented at the conference. This also shows that there is actually a great interest in blockchain technology; many people see an opportunity in it, and they are looking to build it into their own business strategy in order to improve. We are among these many people, too: some of our colleagues took part in the event as well.

Why is blockchain so popular?

As a result of the economic crisis in 2008, many conceptions which seemed unshakeable at the time crashed. Dr. Péter Ákos Bod, former president of Magyar Nemzeti Bank said that it became certain that the self-regulation of banks is not satisfactory; the trust invested in banks is shaking. The money habits of households are changing; the use of cash is decreasing. Online invoicing and payments have started to spread.

Cryptocurrencies and blockchain came into the spotlight as an alternative to banks. It enables the free flow of values – not only currencies, but also contracts, other documents or data.

“The technology has a number of advantages,” said Örs Országh, deputy manager of Blockchain Competence Center, “which makes it attractive to its users.”

On one hand, it is exceptionally effective while it is also safe. The effectiveness is due to the fact that it eliminates third parties and mediators from the flow of values, which makes the transactions cheaper and more easily manageable. Safety is provided by the so-called cryptographic elements, and a number of administrator systems which involve different countries, too.

Another advantage is the fact that the system is perfectly traceable, transparent, and auditable. Whatever has been recorded on the chain is unalterable and eternal, and it can also be tracked later if there is any doubt or question concerning a transaction or a contract.

Many fields may be affected by the technology in the future. Imre Szilágyi, chief organiser of Blockchain Budapest listed a few which can undergo drastic changes thanks to blockchain: bank systems, supply chain management, the real estate market, voting systems, and healthcare. The markets which made this list could all take advantage of what blockchain has to offer.

What is ICO (Initial Coin Offering)?

The main subject of many talks was the term ICO – which was unknown to most of the audience. It is often called the crypto-sister of Initial Public Offering (IPO), but it is rather similar to crowdfunding. The aim of the issuer is to raise capital to finance their project by issuing tokens.

Dr. György Cseh (who is currently working as an advisor in such a project) thinks that the success of ICO lies within the community’s trust in the team, and marketing. It is important for the community to believe that they will fulfill the project, and that the product will be finished and become sellable. It’s also important for the vision to reach as many people as possible thanks to the marketing strategy and marketing tools.

It’s obvious that 2017 had been the year of ICO – the creators of many projects chose this way to finance themselves. However, the more possibilities you have, the more dangers you have to face if you invest in ICO. Csaba Csabai warned us that before you invest your money, you must be sure of the team’s legitimity. That’s because cyber-criminals have also found out that they can get hold of a significant amount of money if they create a so-called scam-ICO – so the crypto-blogger told us all to always look out for these.