AN INTRODUCTION: CRYPTOCURRENCY AND BLOCKCHAIN



Cryptocurrency: An insight

Cryptocurrency can be denoted as a new form of digital asset which is based on a network that is distributed across a series of computers. The word ‘cryptocurrency’ is derived from the encryption techniques which are used to secure the network.

Cryptocurrency has one name which overpowers all others. The ‘money of the internet’ has come to be known as bitcoin for most people. Bitcoin is the undisputed king of cryptocurrencies. The popularity of the same has risen in over the last 8 years. A major fact about bitcoin is that when making transactions on the platform, name or identity of the individual is not disclosed but only the public address is available.


Blockchain: An insight

There also comes another name in the market which has held some major share of investments. There is a blockchain technology which refers to a ledger or a database which is distributed. Blockchain is a digital ledger that is dispersed across networks. It is used in the cryptocurrency space to securely record every transaction between users. DLT or Distributed Ledger Technology was used by bitcoin in 2009 by Satoshi Nakamoto. Blockchain is simply not just limited to bitcoin only. The mystery technically can never be solved whether bitcoin came first or blockchain, just like the chicken egg theory.

About the blockchain technology, it is often termed as a thriving future technology that would change the shape of many industries across the globe. It basically provides a way to record and transfer data which is transparent, safe and auditable. The blockchain technology is disrupting many industries, such as banking. It is giving access to people for transferring of funds across the globe, including third world countries that don’t have the means to engage in traditional way of banking. Billions of people can transfer money from one country to another at a very low fee. Barclays has also made international payment system out of the blockchain technology.

Secondly, industries such as cyber security is following the blockchain technology as it is encrypted using advanced cryptography which makes it difficult for anybody to hack or make changes to the data without any authorisation. The technology does not engage middlemen which eliminates the leaking of vital data in cyber security. Another aspect wherein blockchain tries to dive in is forecasting. The technology plans to change the way how one does research, consulting, analysis and forecasting. The technology also takes over to overlook whether the intended party is receiving donations and whether it the charity made is going in the right hands or not. Blockchain will change the face of charity too as many people step back when they see the donation made by them does not go in the right hands.

The bitcoin blockchain is permanent ledgers wherein anybody can see how many bitcoins you are holding if they know your public address. It is displayed publicly. But if the users want to hide their transactions, then they can use VPN to hide their trade details. Even in these circumstances, it becomes difficult to trace a public address and not impossible. Bitcoins are mined on the blockchain network, and they come into existence when miners successfully mine Bitcoin blocks. One fact about bitcoin being, that its supply is finite. There will only ever be 21 billion bitcoins and not more.