Cryptocurrency unlocks the potential for smart contracts, a key feature of the blockchain technology which eliminates middlemen from even the most complex transactions.

Right now, the cryptocurrency uses something called the “Elliptic Curve Digital Signature Algorithm,” which is created from the private key which controls a Crypto wallet and ensures that cryptocurrency can only be spent by the rightful owner.

In the future, blockchain technology may not translate to greater anonymity for your individual crypto address on the public blockchain, but it may make simple transactions indistinguishable from those that are more complex and comprised of multiple signatures.

Currently, smart contracts can be created both on the cryptocurrency core protocol layer and on the Lightning Network, a payments platform built on bitcoin, which enables instant transactions.

As more programmers build smart contracts on top of crypto’s blockchain, there is also the potential for cryptocurrency to become more of a player in the world of DeFi, or decentralized finance, a term used to describe financial applications designed to cut out the middleman.