You have already heard something about cryptocurrency, right? It would be difficult to find anyone who knows nothing about Bitcoin and digital money. And we are not surprised at all. Nowadays, cryptocurrencies are at the peak of the popularity. There are many discussions around them, people are debating and waiting for the great financial boom to happen.
Politicians, journalists, businessmen, and ordinary participants of cryptocurrency exchanges express their opinion. Some consider that virtual currency brings nothing but financial damage, while others believe that cryptocurrency will change our lives for better. So what’s the truth? Will blockchain be so popular in the future? Is a blockchain development company something good or should we expect a financial disaster in this field?
What Is Blockchain?
The idea of blockchain is very simple: cryptocurrency systems are extensive information bases that anyone can access. These bases operate without centralized management and supervision by intermediaries. Checking the accuracy of the transactions is done by users themselves, confirming the authenticity of the transactions made and forming blocks of records.
This process is very difficult from a mathematical point of view, so the user needs to have a powerful computer in order to do the tracking. Maximum decentralization allows the control of the operations accuracy with BTC without the involvement of financial supervisory authorities.
Apart from the above decentralization thing, there are many other advantages of blockchain technology over conventional banking systems:
- Anonymity – all personal information from the system is encrypted and cannot be accessed unless the user gives it himself;
- Lack of intermediaries. Today, all banking transactions with the currency and documentation go through a large chain of intermediaries. Virtual systems do not require a similar approach and constant verification by the third parties;
- No overpayments. You will save a lot of money on commissions.
Experts note that the BTC virtual system has been under the risk of attack from various sources for many years, but none of them led to breakdown. This means that not only banks but also government institutions can learn from the experience of creating such decentralized network projects. For example, blockchain can be widely used in judicial practice: the use of this technology makes it impossible to falsify the data.
Expert Final Say
Bitcoin as a product of blockchain systems is a revolutionary phenomenon that attracts the attention of specialists and ordinary citizens. The use of virtual “coins” can bring many benefits in terms of finance. Of course, they will gradually be introduced into social and economic life, despite numerous obstacles. However, for human security, there is a need to establish a mechanism of regulation. It is ready to come!