What is Cryptocurrency, Its Uses and Why use it?

Cryptocurrency is the latest buzz of the financial market. Bitcoin was the first cryptocurrency to enter the market; many others followed the trend with the success of Bitcoins. It will be not wrong to point out that all great inventions were accidental, so the case with Bitcoins. Satoshi Nakamoto invented Bitcoins cryptocurrency. He was trying to develop an e-cash system under a project in 2008, with no central server, so he devised a decentralized electronic cash system. Cryptocurrency uses a peer-to-peer network to share the information to eliminate the need for the centralized system. Cryptocurrency is not rocket science to understand. They are databases stored in a decentralized ledger which record the transactions that cannot be changed or altered by anyone as Blockchains protect them. Authorized users can only change them if certain conditions are met. Cryptocurrencies are entries of tokens stored in a decentralized database with records of all account balances. Advance cryptography techniques protect the blocks.

How Cryptocurrency Works?

Cryptocurrency data stored in a decentralized public ledger, so the transparency is maintained. This also eliminates the risk of double spending by the user. Nobody owns or controls the ledger, its self-running without any interference of a central authority or a third-party. When a transaction is done in Cryptocurrency, it goes through a verification process. Cryptocurrency miners verify the transactions and add them to the Blockchain powered public ledger. Power supercomputers are used to solve the cryptography mathematics which is the key essence of the verification process.

Cryptocurrency mining is open-source, so anyone can confirm the transaction and the first miner to solve the problem gets to add a block to their transaction ledger. This process of verifying transactions is known as “proof-of-work-system.” Use of digital signatures prevents any forgery. Everyone is allotted a private key and a public key. The keys are protected with 256Bit encryption which is impossible to crack. Blockchain Technology protects the data blocks from any kind of tampering and unauthorized access.

Read also: Blockchain: A New Internet Architecture

Why Use Cryptocurrency?

  • For some investors cryptocurrency are high-risk investments, but here are some of the reasons for shifting to cryptocurrencies.
  • The most well-known benefit of cryptocurrencies is the lower costs of sending and receiving payments at high speed. The traditional transfer fees for an overseas payment is much higher than what incurred in Cryptocurrencies.
  • Cryptocurrencies are censorship resistant. Only the owner of a cryptocurrency wallet has access to his wealth with private keys. No personal Bitcoins wallet can be freeze by authorities. This way it offers an alternate store of wealth for users.
  • Initial Coin Offering (ICO) is a new form of fundraising for start-ups for raising capital by selling newly created digital tokens for cryptocurrencies such as Bitcoins and Ethers. It has opened new opportunities for a much broader spectrum of investors.
  • Some of the cryptocurrencies enable users to make private transactions. These transactions are made without having to give any explanations to banks or a central authority on the fund transferred.
  • More and more countries are adopting Cryptocurrencies on a broader scale. As of now, a total of 96 countries have permitted the use of Bitcoins for transactional purposes. Cryptocurrencies in future will be the global value of exchange.

Conclusion

SARA Analytics as a Cryptocurrency development company offers best, reliable and effective services to the customers as per their requirements across the globe. It is formed in such a way that the all the transactions done in it are 100% secured through encryption, thus offering full privacy and security to its users.

Blockchain: A New Internet Architecture

Blockchain Technology has gained significant attention, possesses far more future potential than Bitcoin. Bitcoins are the most popular form of Cryptocurrency that took the finance market by storm at the beginning of 2018. It is a fact that all type of cryptocurrencies is back by a distributed ledger technology known as Blockchain. It is a decentralized ledger or system implemented for recording and documenting transactions that take place digitally. Blockchain makes a copy for all the authorized users in a network, and a complex set of rules secures the data in Blockchain records. The content within them is protected by robust cryptography which makes sure that the transactions within the blocks cannot be edited or deleted by any of the parties or cannot hack by outside sources.

One of the important features of Blockchain Technology is that it allows transactions to happen without any need for central authority. The blockchain is widely used in the sector of Cryptocurrencies and has scope in other areas as well. Experts believe that the real potential of Blockchain is yet to be explored by the world, Cryptocurrency was a just the first step towards its vast future.

Below are some of the essential points that make a Blockchain a new internet architecture into the mainstream of business and finance:

International Payments

Traditionally the transfer of funds beyond the borders is an expensive and lengthy process. The reason for that is the involvement of multiple currencies and banks at different locations. The amount is processed for longer durations before the recipient can get the money. Blockchain, on the other hand, offers a much faster alternative to this system. The cost of remittance of the amount can be reduced to as low as 2% as compared to the current average of 20% with real-time processing of funds. There are still many hurdles to pass before this but, the future of online transactions lives in Blockchain Technology.

Read also: Blockchain is the future of technology

Smart Contracts

Smart Contracts are the most significant potential of Blockchain Technology. They are the set of programmes backed by Blockchain Technology which can meet all the conditions of an agreement and lead the contract to execution. These provide more secured, and automated way for traditional contract laws and as well offers a cheaper and more effective medium for cracking contracts. There is no limitation over what type of contracts can be automated; this technology adopted in any sector hassle-free.

Security Purposes

One of the major threat to any kind of online transaction or data recording is from hackers and other unauthorized parties. Online data is secured through advanced cryptography. The information once entered cannot be altered in any condition. Blockchain offers a tremendous level of security. There is an independent verification system for authentication of transactions in the system. This mechanism can efficiently work in other fields like online data storage, payment mechanisms, and identity management.

Conclusion

Blockchain Technology is a new architecture in the field of banking and finance, and various organizations are interested in it for their future development. SARA Analytics as a Blockchain Development Company offers refined Blockchain services across the globe as per the customer needs. Any business interested in secured and faster processing of transactions of data can use this technology hassle-free.

Read also: Why blockchain for business

Why Blockchain for Business?

Blockchain and cryptocurrency have gained a lot of popularity over the last decade, mainly due to the frantic growth rate. It is a fact that cryptocurrency has seen ups and down in the finance market. But among these ups and downs, the potential for Blockchain technology has been exposed on a broader scale. Blockchain Technology is now seen as an alternative to traditional digital currency management and banking system. Blockchain was initially developed to back Bitcoin cryptocurrency. It works by maintaining a decentralized ledger for recording transactions in blocks which is accessible to all the authorized users in a secure way at any time.

As of today, Blockchain is reshaping the industries of various financial sectors, manufacturing, accounting, and healthcare. This technology will continue to evolve itself in the coming days and is not just limited to Cryptocurrency. It is essential to understand that Blockchain and Cryptocurrency are two different things.

Read also: Advantages & Disadvantages of Blockchain Technology

Blockchain Technology acts as a backend technology for recording transactions in Bitcoins. It is the very reason for the existence of Blockchain. In simpler words, Bitcoins would not have possible without cryptocurrency.

Here is why businesses should adopt to Blockchain Technology:

Security: Anything that is digital always faces a threat of getting hacked, and there are chances of getting data stolen or tempered. In the case of Blockchain, due to a decentralized system, the data is stored with everyone which makes it impossible to get altered or deleted. The data, on the other hand, is also protected with advanced cryptography to prevent any unauthorized use.

Reliability: Handling daily business processes is a complex task. Through Blockchain Technology you can increase the reliability in the works of your business. The data processed and work done are free from any kind of human error or biasness. Blockchain Technology also prevents any kind of fake documents or fraudulent transactions.

Decentralization: Decentralization system is the one in which every participant or user is equal to another. This form of management increases transparency in the business and thus increasing the integrity of the organization. In the case of a centralized system, if there is a crash in the system, all the nodes connected to it will crash with the central unit. But in a Blockchain powered decentralized system, this is not possible.

Smart Contracts: Blockchain Technology allows the introduction of smart contracts in the system. Smart Contracts are a set of an electronic algorithm that allows the contracts and transactions to be done if certain conditions are met. The contracts are automated and also saves both time and cost for the company.

No Mediators: There is no need for a mediator for authorizing the transactions. The transactions can be verified in by an AI powered algorithm in a blockchain network. This way it needs less manpower and increases work efficiency in the organization.

Read also: Blockchain: Why it is the Future of Technology

Conclusion

Blockchain Technology is the future of finance and management sector, and various users are adopting it for their organizations. SARA by knowing its importance offers refined Blockchain Development services across the globe as per clients business needs. Any company or organization which is interested in secured and faster processing of transactions of data will use this technology for their businesses.

Blockchain: Why it is the Future of Technology?

Today on everyone’s tongue the word Blockchain is at full swing as starting off with the future predictions and the terms like Cryptocurrency or Bitcoin. Blockchain as a decentralized technology store the data digitally online and makes a copy for every authorized user to get secured access to that data. The data in blocks further recorded in a complex cryptography structure. Through this procedure, it made sure that the data kept in the blocks are safe from any kind of external threat like data tampering and hacks. Blockchain ledgers are also capable of authorizing and validating transactions without any need of a third party verification.

Bitcoin has been talking about the town since the beginning of 2018. They are the most trusted and sought-after cryptocurrency in the market. The one thing that keeps all the cryptocurrencies like Litecoin, Ethereum, bitcoin, etc. running is Blockchain Technology. This cutting-edge technology is the real reason for the existence of Cryptocurrencies and also the backing force behind this complex digital currency. Cryptocurrency has just been scratched from the top, and there is a lot of potential laying unexplored in the deep. We can say that cryptocurrency is the first step towards a more secured digitalized future.

Read also: Pros of blockchain technology

Why Blockchain Is Future of Technology

Blockchain has scope in every field where there is a requirement for a secure way of sharing data. This technology has the capability to change the way the mainstream finance sector works because:

  • Transparency & Immutability: These are the two features that any finance company would need to increase the integrity of their works. Blockchain offers a transparent way of storing data where it can view by every authorized user but cannot be edited by anyone. This increases the integrity of the company and trust among its customers.
  • International Fund Transfers: As of the current norms in the finance sector, the transfer of international funds is a lengthy as well as an expensive process. The time involved in the process is long as it passes through various validators and crucial steps. It’s a long procedure before the recipient gets his hold on the money. Blockchain offers a much cheaper alternative to this process. It can bring the processing costs down by more than 90% as of the current expenses. There may be many hurdles to pass before this could be achieved, but the future is here.
  • Initiating Smart Contracts: This is the most significant scope for Blockchain Technology. Who wouldn’t want the complex contracts to be automated to save costs and time? Smart Contracts are a set of programmes written to undergo a contract when certain conditions are met. This provides a secure and alternative way for traditional contracts. The automated systems would have a better understanding of contract laws and norms.
  • Security Purposes: One of the major threat to any kind of online transaction is data protection from hackers and unauthorized access. Blockchain Technology can get good riddance from this technology. The data once entered in a Blockchain node cannot be deleted or edited. This offers enormous safety of data. This can be put to work at various systems like online transactions, data storage, and even identity management.

Read also: Why Blockchain for Business

SARA Analytics as a blockchain development company knows the importance of this advanced technology to bring transparency in the financial system in future.

Advantages & Disadvantages of Blockchain Technology

The USP of a Blockchain Technology is that it permits a database to be shared directly without a central administrator to its associate members to bring transparency in the system. Rather than having some centralized application, Blockchain transactions have their self-proof of validity and authorization. Blockchain has the capacity to change the business style of today and also improve efficiency in the management of an organization. Moreover, it works on computer networks that are connected to a central point without the interference of a third-party. Blockchain Technology and its apps are being developed daily on a broader scale and are considered to be the most effective tool of the decade. Industry can learn more through Blockchain Technology because it gives some advantages as well as disadvantages which we will discuss in brief:

Advantages

The crucial advantages of implementing the Blockchain Technology for the industry are:

  1. Decentralisation: This is one of the primary benefits of this technology because, in a Blockchain powered system, the need for third-party or intermediaries is eliminated by its working mechanism that manages the process of validating, verifying and clearing the various transactions.
  2. Trustworthy: A distributed ledger in blockchain technology records all crucial transactions in such a manner that they are readily available to all the blockchain members. As now the ledgers are being shared publicly, this brings more transparency and trust in the entire system.
  3. Simplification: Present working model in various organizations, in whichever sector like automobile, healthcare, banking, etc. every department is maintaining their own databases. Blockchain technology serves a single shared ledger that makes data sharing fast and simpler involving all departments.
  4. Faster Trades: Any kind of trade or contract has to pass through a various verification process before reaching its final destination. Blockchain technology can assist in saving time here, by offering single ledger to all the associated parties by providing faster settlement of trades.

Disadvantages

With some crucial advantages, Blockchain Technology has some drawbacks too for an industry:

  1. Nascent Technology: With having several benefits of Blockchain Technology, the primary disadvantage of this cutting-edge technology is that there are some nasty challenges like transaction speed, the verification process, and data limits should be resolved before making blockchain widely applicable.
  2. Uncertain: As most of the modern currencies of today have been created and regulated by national governments, financial institutions, etc. Blockchain or bitcoin face a hurdle in widespread adoption as their financial transactions would be restricted because not authorized by the government institutions and as a result remain unsettled.
  3. Higher Costs: Developing a Blockchain into your organization is not an easy task, it involves massive energy consumption, a decent amount, colossal capital cost, etc. that might be not possible for medium scale as well as low scale businesses. It is a fact that it offers tremendous savings in transaction cost, but at the same time, its implementation cost is too high.
  4. Power Use: The consumption of power in the implementation of Blockchain Technology is comparatively high. Keeping a real-time ledger is one of the underlying reasons for this higher consumption because every time it produces a new node, it communicates with every node at the same time.

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