Digitized and centralized public register of all types of cryptocurrency transactions is known as blockchain. In today’s era where digital currency is gaining popularity gradually, all the transaction records are stored in a chronological order allowing each marketing participants to keep track of all the forms of digital currency. For the immense popularity of bitcoin and other digital currency, this has become a legitimate method of accounting which is applicable for any commercial purposes.
Bitcoins And Its Relation To Blockchain
Bitcoin is a cryptocurrency which can be said as the first decentralized digital currency. It cannot be regulated by a central authority. Its users can dictate and validate transactions only when someone pays money to another for some goods or services. Thus it removes the use of a third party to tackle the procedures and the whole transaction is publicly recorded and eventually into a blockchain. The blockchain database based on this principle can be shared in a system and each computer that is connected can then access records and receive a verified copy of blockchain. So you get insight knowledge about important facts at any point in time.
How Bitcoin Or Other Digital Currency Useful
Owing to the current trend of using digital currency various cryptocurrency has gained importance. But bitcoin has been leading the trend considering the growth of capitalization and user base. Once you get bitcoins you can keep them in store to wait till the value goes up over years or you can make use of them to purchase goods and service. But the market condition is still not like physical currency which means prices can be volatile. So, people possessing digital currencies may face loss at any point in time.
Is The Future Of Blockchain Strong
If blockchain technology becomes an integral part of our economy then in near future we could see digitally advanced and integrated global economy that might change the scenario of poverty and economy growth rate. The first and foremost advantage of blockchain is that anything unique can be stored digitally, so it decreases the use of wills, deeds or certificates which can be stored with specific codes. Any stored information on the blockchain can be easily traced or verified without any risk of crime, fraud or counterfeiting activities. This reduces the risk of corruption in the financial system. No one can tamper the data that are already stored in the digital chain.
But it is still a long story to take cryptocurrency as ‘money’ in all true sense considering two criteria, measure of value and medium of exchange. This volatile state of digital currency is a major drawback.
In a nutshell, it can be said that blockchain has the potentiality to become a strong financial base considering the security of cryptography, storage and transmission of data and creating a shared database that is not just trusted, but also independent.
Stay tuned for the updates.
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