What is Bitcoin Technology?
Currency is a hot commodity in every age because that’s what you use to carry out all kinds of business transactions. They are important to both consumers and business owners. So, when Bitcoin was first introduced in 2009, it created a wave of excitement bordering on hysteria. Since there are so many issues with carrying loads of cash on your person and transferring money, Bitcoin became an instant hit.
How Does Bitcoin Work?
This is a digital currency that allows users to create virtual wallets, save money in them, buy Bitcoin currency and make transfers anonymously. There is direct interaction between users and through block chain which displays all the wallets so that the transfers are transparent. Once you have installed a Bitcoin wallet on your phone or computer, you get an address which you may share with users to accomplish transfers. These addresses can only be utilized once. To ensure security, transfers are made using private keys used between the involved users. This way no other user can interfere during it. The best part about Bitcoin technology is that there is no transfer fee unlike banks and other money transfer services.
Anonymity And Crime
The biggest surprise was that the developer of Bitcoin is anonymous but goes by the name of Satoshi Nakamoto. This added plenty of mystery to the mix creating doubt about the credibility of Bitcoin. The coolest thing about Bitcoin technology is that users are completely anonymous and only their Wallet IDs appear on the network. You can imagine how many possibilities that opens up especially for criminals and those involved in shady businesses. A major problem with Bitcoin technology is that it is unregulated by anyone except the powerful system that holds it together so FDIC does not provide insurance. This means that Bitcoin users are susceptible to attacks by hackers, which is not an uncommon occurrence in the network.
The concerns regarding Bitcoin are mostly because there is a low level of security when it comes to being protected by hackers and the fact that no one has any control over it except the automatic system. It is being widely used and will probably become more popular in the future as current issues are addressed.