Posted On 21 May 2018
As with everything in life, there is always evolvement as the years go by, and the currency industry is certainly not excluded from that. You see, with the fantastic advancement in technology, the idea of having money in physical form just seems like a constant tie to the 17th century.
Now, although physical money is still utilized heavily worldwide, and will probably continue to be, there has been an attempt to bring the use of currency into the modern era. It is known as Bitcoin, and although people generally picture glistening coins on a screen in their mind, it’s actually just an intelligent piece of software.
Essentially, it’s a virtual form of currency consisting of a multitude of protocols, which allows you to make transactions on the web anonymously. Most people are completely unaware of how it all works, which is why we’re going to explain it to you.
Bitcoin does not operate individually; it works in harmony with the renowned Blockchain technology. Despite Blockchain being incredibly versatile in the way it stores information, and powers different software, it focuses solely on transactions when used for Bitcoin. The way transactions appear in the Blockchain is with numbers and letters, and it can almost be considered as a never-ending list.
For instance, if you wanted to send some money to your mother safely, quickly and anonymously, all you’d have to do is acquire her public key. Once you’ve got that, you’d verify your identity and then send her the desired amount of Bitcoin. Following that, the Bitcoin could be accessed by using a wallet, which is basically a set of keys. Nowadays, the majority of people use a Bitcoin exchange to host their wallets on a convenient platform. ! But, even though you and your mother would know you’re sending the virtual currency, if someone was to look at the Blockchain, they might see something like – ‘19Fir42eP8azO0sHH5tq8q91ia77sW2vG5 sent 1.10856330 to 15Jo3xz94Pd1Sb7rt01aW2qAa68m1h33Ez on December 5, 2017, at around 21:15′.
Moving on, a distinct feature of the way Blockchain works is that it is extremely secure, and as you’re not displaying your identity, it’s very hard for you to be targeted by a cyber attack. Also, the Blockchain ledger that all transactions are directed to is completely accessible to the public, which means that it’s immensely difficult for someone to tamper with or alter it.
All in all, Bitcoin works through superbly-constructed software that stores transactions on the Blockchain technology, and can then be accessed through an encrypted virtual wallet. So, rather than sending money, you’ll be sending multiple lines of code in place of it.