Bitcoin: Revolution in Financial Transactions

In today’s world, the increased connectivity provided by the Internet has changed the nature of financial transactions, creating cryptocurrencies.

Recent technology developments in social media, peer-to-peer software and smartphones have paved the way for the evolution of a money type beyond its traditional nature, called cryptocurrency.

Cryptocurrency

Cryptocurrency is a digital or virtual currency that is secured by cryptography and possesses all the features of traditional money except the physical nature, which makes it nearly impossible to counterfeit or double-spend.
Digital currency can be exchanged for other digital currencies, financial transactions and traditional currency like US dollars or Euro by banks, online shopping, etc. However, the methods used for their transactions are slightly different and have their own procedures.

Properties of Cryptocurrencies

As the Internet has become an integral part of our lives, the e-commerce revolution has transformed the way in which we interact and transact online. In the previous blog post, we discussed e-commerce in detail. E-commerce can be interpreted as doing any business online or it can also describe any kind of commercial transaction that is facilitated through the internet. For any online business to occur, electronic payments and digital money should be fulfilled. The digital currency has the following features:

1. Secure: they use high-quality encryption techniques to ensure a high level of security
2. Anonymous: financial transactions should be private and accessible only to the parties involved
3. Portable: digital cash should be independent of any physical location
4. Two-way: digital payments should be peer-to-peer and occur between users
5. Offline Capable: users should be able to spend and receive money anytime without requiring 3rd party authentication
6. Divisible: digital money should be divisible into smaller units of cash

Blockchain

Blockchain is a brilliant invention, the brainchild of a person or group of people known as Satoshi Nakamoto

a chain of data blocks or a kind of database to record financial transactions. It is a digital concept to store data. All data are stored in blocks which are a bunch of transactions that have been added to the blockchain. When a transaction is made, it is copied to all computers in a participating network. This is called “distributed ledger.”

The blockchain is a chain of data blocks. Each block can be thought of as a page in a ledger. The individual blocks are composed of several components: head of the block (block header) and his body (block body).

Blockchain technology has created the backbone of a new type of internet by making it possible to distribute digital data without copying it. Originally designed for bitcoin digital money, the tech community is now finding other potential uses for the technology.

Bitcoin was the first application of blockchain technology which used it to store users’ asset data. If blockchain is an operating system, Bitcoin is software on that operating system.

Bitcoin

Bitcoin is a digital currency created in January 2009. It follows the ideas set out by the mysterious and pseudonymous developer Satoshi Nakamoto, whose true identity has yet to be verified.

This digital currency is gaining huge popularity worldwide and mass adoption. As the popularity of Bitcoin and other cryptocurrencies are increasing, so is the eagerness of people to know more about it.

Bitcoin has various advantages as well as disadvantages. We shall discuss the same in this blog post:

Benefits of Bitcoin

• Easy to Use
• Decentralization
• You Can Use Crypto Internationally
• Low Operation Cost
• You Can Do Unlimited Transactions
• Fast Transactions
• Transparency
• Anonymity
• Highly Secured
• No Inflation
• Peer-to-Peer Cryptocurrency Network

Drawbacks of Bitcoin

• Lack of Knowlege
• Strong Volatility
• Large Risks of Investing in Cryptocurrency
• Not Accepted Widely
• Not Able to Reverse the Payment
• Storing of Cryptocurrencies

Cryptocurrencies are here because of making our day to day transactions easy now as time passes technology usage also getting a wide range as well as more and more pros and cons added to the technology, it totally depends upon us how we use technology to make our lives better and easier.