BITCOIN - THE FUTURE OF WORLD OR JUST ANOTHER PANDEMIC ?

June 27, 2020

BITCOIN - THE FUTURE OF WORLD OR JUST ANOTHER PANDEMIC ?

BITCOIN is a digital currency that uses Cryptography technology .

FIRST of all understand what does a currency means? A currency is a promise that one person give to another , this promise is authenticated by a central authority in case of India it is Reserve Bank of India.

It means RBI authenticates a transaction every time and keep all the databases related to a transaction secure within its reach. So bitcoin currency is also a promise but a digital one that is it do not exist in digital form.This currency is an information on internet travelling in form of bits(i.e. 01010101.. etc).

The most important feature that makes bitcoin Special is that it is a DECENTRALIZED currency.

In a centralized currency the authentication of the transaction and details regarding who is performing the transaction is stored to a central authority for example RBI. But in Decentralized currency the information of the transaction is not provided to a single authority, instead it is given to multiple middleman in more discreet or in form of codes i.e. only a part of transaction is shared with someone.

It means if you want to transfer money to a person in case of normal currency, you have to take permission of your respective bank. But in case of Bitcoin technology or Block chain technology you have to take permission to multiple people or multiple nodes , they will provide the transaction their respective codes and if the codes are alike then only your transaction will be approved.

LET'S EXEMPLIFY

In block chain technology or whilst using the bitcoin all the information i.e. obviously present in the coded format is travelling on the internet . Now if you request for 1btc i.e. 1 bitcoin , this request will be encrypted in coded form and will travel on the network in a Block. This block will have an address, this address is segregated in multiple parts and these parts are sent to different nodes(nodes are people sitting with big computational computers) . All these computers follow same protocol and software via which they decipher everything. This block is further added to a block chain and thus this specific block could only be found in this big block chain if its particular code address is provided to it.

Bitcoin is a concept , it is still innovating . It was first described by a mystery man "Satoshi Nakamoto". In his research paper he talked about how this technology is going to work, he provided a basic protocol of the bitcoin . You can his research paper yourself - satoshi nakamoto research paper . This mystery man gave this concept in 2009 , no one found him after that. It is like Robin hood came and instead of distributing money with the people , he taught them how to steal the money.

Bitcoin is open source like an email- as we all know whilst making our own website we do not need any patent to file, the code of an email is openly available to everyone, similarly the code of bitcoin is available openly for everyone, thus anyone can make their own currency similar to bitcoin .
But do not worry no developer can create fuss or insecurity to the network
by creating his own code as bitcoin follows a set of protocols and if any change of protocols is implemented then these changes should be accepted by all the nodes present on the network, if anyone denies, these changes won't be applicable. In order to maintain compatibility with each other all users need to use software complying with same rules.

For normal users bitcoin is nothing but a mobile app or a computer program.

it helps in sending and receiving . The transaction can take some time in between few seconds to 90 minutes , and an average time of 10 min as the transactions

involve big computational calculations where codes are deciphered and reversed . So it is a complex task to accomplish.

Bitcoin follows Block chain Technology which uses public ledger system. Public ledger is used as a record keeping system that maintains participants identities in a secure and anonymous way. Ledger contains every transaction ever processed.

Today total value of bitcoins are more than 100 billion dollars. New bitcoins are generated by bitcoin miners. Miners basically create a bitcoin i.e they process a so called PROMISE OR CURRENCY. Only 21 million bitcoins can be generated , but it is a not limitation as 1 bitcoin means 1,000,000 bits, and obviously these bits can be segregated further in more smaller units to store information. Miners basically confirms the transaction, they process the transaction, they secure the network and keep everyone in the system synchronized. They perform mathematical calculations for the users as they are the people with appropriate hardware devices which can perform big mathematical calculations.

Block chain technology can be used for many purposes like Information can be recorded privately for various purposes like medical information of patients, Tracking donations and day to day transaction of a person. Data surveillance in pandemics like Covid19 can also be performed with the help of this technology. In supply chain management where industries will be able to keep a track of demand, supply and logistics.

The value of a Bitcoin is decided on the basis of mathematical calculations including users , merchants , startups etc . More the demand and supply more will be bitcoin's value. Today in 2020 1 bitcoin is approximately equal to 7 lakh rupees or 6,155 dollars, this currency is obviously luring people and investors a lot.

Bitcoin is still look down with sceptical eyes because it provides no identity of a user . So it means user can be anyone i.e. one with negative intentions too. Bitcoin can be easily used for money laundry, it can even help in funding of terrorists and other mischievieous groups or organisations. So now you have to decide whether bitcoin is the future of the world or it is just an another pandemic on the world.

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