What Exactly Is Bitcoin And Blockchain?
The technology on which these currencies like Bitcoin works is latest and is still underfunded because there are very few people, who fully understand what exactly it is.
The Blockchain can be defined as the formalization of a process through the internet technology. It is a promissory note, but it also has a dark side known as hawala system. Imagine, a promissory note of RS 20,000 is issued by me to pay the bearer, but there is no choice expects to distribute the payment, whenever he demands in order to be trusted by people in the business.
On the other hand, the promissory note is fictional in the hawala system and the currency can be converted into many other currencies while it passes through the individual’s hands. In this system, RS 20,000 can be defined as the block, whereas the hands it passes can be known as a chain.
With the help of Blockchain technology, the users are allowed for the instant recognition of the block’s exact size by entire transaction parties in the chain. It consists of unique features that do not offer by any other system. It shows that the impact of the Blockchain is revolutionary. It built trust instantly among the people without the need of relying on the series of trustworthy banks for the clearing of the cheques.
Now, you will wonder what bitcoin is. The bitcoin can be defined as the bid by a firm to develop a set of shares with the help of blockchain technology in a trading entity. It will have an initial set of value and fixed number. The demand is going up because the shares number is fixed.
The blockchain is seen as a threat by the banks because systems will be built by more and more companies creating exchange blocks in competition with each other. There are many companies in India and Kenya that are using their networks to assist people in making cash transactions.
The blockchain also has applications outside the financial market, as it can be used by software firms and other technology firms.