When we are thinking about Bitcoin and Blockchain technology, it might be worth asking ourselves how the system is working.
Moreover, people the taking more interest in the bitcoin and other crypto day by day. That increases the curiosity among the people who still believe there is not possible to have a digital currency.
In this article, we will see how bitcoin and blockchain technology is Changing Money, Business, and the World
Facts about Bitcoin Technology
Bitcoin is the first decentralized peer-to-peer payment network. It is powered by its users with no central authority or middlemen.
The payments in the network are recorded in a public ledger using its own unit of account.
Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.
Bitcoin was invented by an unknown programmer, or a group of programmers, using the name Satoshi Nakamoto. The real founder or group is still mysterious as it is not revealed yet.
The bitcoin system is self-policing, which means it is handling all the system on its own.
The total circulating supply of bitcoin has a limit of 210 Million.
Why Bitcoin is Popular?
The bitcoin transactions system is a decentralized payment system, so there is no agency required in this payment system. The government, banks, and credit cards are not involved in this system. A bitcoin transaction is a decentralized but peer-to-peer/P2P collective. Anyone who has not made a purchase or sale can see others account in an open book on his computer screen.
The majority of people concerns about privacy, but some other facts are also lead them to accept cryptocurrency. People making payments mutually then why should we pay extra transaction charges to banks or third party agencies. There are also limited free withdrawals from the ATM. A person has to pay extra for the cheque books.
Some experts have also argued on the economic policy,
- If the government devaluate the currency, then why should the earnings of the person automatically decrease.
- If a bank goes into liquidation or loss, then why should my saving deposit sink at any time?
In the case of bitcoin and blockchain technology, people do not face this kind of restriction from authorities.
How to Generate Bitcoin?
A person can generate a bitcoin by mining. The process of bitcoin mining required powerful CPU and GPU components. It uses a complex mathematical algorithm to generates a block. One block contains 25 bitcoins.
The cost of bitcoin mining is much more, but if you successfully get a single block, the reward is way better than the cost of mining. Generally, it takes so much electric power to generate a bitcoin. Electronics components required for mining are:
- Local Area Network/LAN
- Graphics card/GPU
- A modem
- High Central processing Unit/CPU
- Extreme cooling system
- ASIC Miner software
Centralized vs Decentralized Payment System
Now digital shopping has become popular compare to traditional. But, in this process, the buyer and the seller do not trust each other, so a centralized system becomes necessary. Most of the time, the bank acts as an intermediary. In this, both time and money have to be sacrificed to some extent. For example, you have to pay interest on a credit card. Bank cheques are taken some time to clear and agents also taking some amount of commission on currency exchange.
While in a decentralized payment system, transactions are peer-to-peer/P2P. Banks and agencies are not involved in the process. People don’t need to pay extra charges for the payment. A person can monitor all the data on the computer without personal information. If something goes wrong with the bitcoin payment, it becomes very hard for a person to handle.
What is the Meaning of Blockchain Technology?
Blockchain technology was developed to transfer payments like cryptocurrency without using a centralized authority for transaction settlements. You can consider it as sharing a system rather than the distribution of data.
Block is considering a public ledger, and every bitcoin transactions are a credit to it. It’s an open book for bitcoin holders to see data on their computers. The personal detail about a person remains unknown.
Blockchain is a link of so many blocks connected to the same network. It is expanding and stores the data of the bitcoin transaction daily. Since January 12, 2009, the first bitcoin transaction has occurred, and to date, all the bitcoin transactions are recorded in the blockchain.
Bitcoin and Blockchain technology has been on the rise for the last few years. Some people say that this technology will be important in the future, and others believe it is already capable of changing the lives of each person daily. The truth is that for many people, still it is something very new, and because of that, they don’t know how to react to it.
What is Cryptocurrency?
Cryptocurrency, we can say that is the next big thing. People are getting more curious about it, and many people are getting attracted to their investment. Cryptocurrencies may be new, but there are still many people, who are trying to earn through this as their profit source.
There are different companies that offer people the opportunity to earn a good amount of money. Such as Binance, Coinbase, and Wazirx.
A cryptocurrency is a digital form of money. Among other things, this type of currency aims to use cryptography to control the creation of new units and verify the transfer of funds. It is designed to work as a medium of exchange that uses strong cryptography as opposed to relying on central authorities such as banks for validation and security.
Cryptocurrencies such as Bitcoin, Etherium, Cardano and Ripple have seen a tremendous increase in their value since their inception.
Nowadays, dogecoin getting all the attention as its price increased 12000% within a year. Currently, there are thousands of different alternative coins exist (altcoins). Each altcoin having an individual goal to gain more adoption globally.
Bitcoin and blockchain technology plays a vital role in the cryptocurrency market. As many people are bullish on the future of these cryptocurrencies, there are still others who see them as useless and will not be used by people outside of a small group.
Cryptocurrency becomes so popular and widely accepted by many big companies like Tesla, Microsoft, Starbuck and PayPal. Especially, Elon Musk, the founder of Telsa Motors, supporting bitcoin to purchase a brand new Telsa car.
Hence, social media also influence the market of bitcoin. Twitter, reddit, tumbler, and many forums you can find on the internet that buzzing around bitcoin.
What is the Future of Bitcoin, Ethereum, Solana, and Crypto Currencies?
The long-term case for bitcoin is currently being hammered from all sides. With bitcoin selling more than 65% below its top, the discussion over whether it can be a stable long-term store of wealth, spurred by past downturns, will rage on. Of all, one bitcoin is still worth more than $20,000, and traditional assets like gold have experienced their own ups and downs.
However, the value proposition remains based on a series of speculative bets: that bitcoin will prove to be a store of value over time; that it is a risk asset with competitive returns when compared to assets such as stocks; or that it will prove to be actually useful in significant and long-term ways.
Ethereum is unlike any other cryptocurrency, including Bitcoin, Litecoin, and even Ripple. Eth is a smart contract blockchain platform, and Ether, commonly known as ETH, is the Ethereum blockchain’s native cryptocurrency.
Ethereum price forecasts can be quite high due to its unique structure and status as the first of its type, with so many investors and industry professionals believing in Ethereum’s long-term growth.
Ethereum’s predicted network growth is also strong, as the blockchain is used for more than just smart contracts and transactions; actual crypto assets are frequently developed on Ethereum’s blockchain, providing it further value as the crypto market’s future is bright.
Solana coin intends to serve as a connection between the fiat and digital worlds, where the public’s trust is crucial. A high-performance-oriented distributed identification system, distributed data sharing, collaboration, and distributed procedure protocols are among the benefits of the Solana (SOL) coin.
Solana combines segmented communities with decentralised attestation. It combines a diverse set of modules that aren’t limited to a single industry. The Solana blockchain market is currently expanding at a considerably faster rate, with initiatives ranging from NFT to Web3, DeFi, and many others.
SOL crypto’s popularity stems from the relationships that have helped it become a respected altcoin. It has the financial backing of a strong group, which ensures that it is free of scams. To trade in SOLs, no prior experience or training is required.
SOL currency also benefits from changes in policy governance and regulation. It provides a market for NFT. Hence, it also shows bright future in terms of reliability, security, and flexibility.
Conclusion
Bitcoin and blockchain technology has the potential to change the culture. Bitcoin is the first decentralised ledger and the first cryptocurrency. The majority of people are now willing to adopt emerging forms of digital currency in exchange for a profit.
There is still a lot of work required to be done in order to understand the impact that such a concept can have on our society. In my opinion, The future of cryptocurrency is bright.
Blockchain and Bitcoin have potential to change money, business, and the word as people and companies start accepting new mode of payment.