- Bitcoins are one of the most popular cryptocurrency which is growing rapidly for one of its unique feature where Nobody controls the transactions physically.
- It was on November 8, 2016 when the Prime Minister Narendra Modi broke the news of Demonetization and billions of Indians were gobsmacked, and gradually many things happened. Lines snaked around the ATM’s, few political parties protesting outside bank while few trying to adapt to this sudden storm hoping to make India go completely Digital.
Upswing for CryptoCurrency
- Most of us have heard of crypto currencies like Bitcoins, Zecash, Litecoin, Ripple (XRP that is open source but nobody handles it and it is public. Bitcoin is one of those thousands cryptographic currencies that is rapidly changing the world.
- Earlier the value of one bitcoin was 437$ and now it has escalated to 4554$ says a report.
- While in India these bitcoins are fast gaining favors, there is a record of 35,648 downloads dating from the launch of Bitcoins on 9 November 2008.Ever since the bitcoins began to gain attentions from all the corners, financial regulators tried to stop and even tried to ban the concept of cryptocurrency.
- Also in the mid of 2013 the Reserve Bank of India raised warning to the public of not using cryptocurrency considering the risk and no underlying value. Eventually, after all the discussions on 8th of April, the monastery for state of finance declared these virtual currency as legal, followed by a committee for regulating the bitcoins.
Functionality of BitCoins
- Bitcoins work on a lays backbone termed as BLOCK CHAIN TECHNOLOGY– this is a technology where a shared public ledger is generated in this way all the transactions are stored in one main document(ledger). The implementation of this Technology can be used from financial sectors, cloud to internet of things.
- Basically, An algorithm is used to maintain the record which reduces the human dependencies to verify the transaction. This method of using an online ledger is much on a safer side because each block in the chain uses a cryptographic signatures for second change of the ownership.
- The USP of this technology is two entities can transact successfully with a tamper-proof architecture.
Block Chain Technology basically works on three concepts:
- Private Key Cryptography
- P2P Network
- Program – Block chains Protocol
Through this any digital transactions can be performed without any centralizes third party.
Ransomware attack -To mine cryptocurrency
- Wanna Cry- On 12th May Friday the attack was fired like bullets to various parts of the world. It was a crypto worm that targeted the systems which was running Microsoft Windows as their operating systems. The main Plan of Action of this attack was to encrypt the data residing on the computers, disabling access to the information through which the demand for the payment was put front in the form of bitcoins.
- Petya–It is a ransomware attack which took place on 2016 attacking on the windows affecting the master boot record and thereby executing the payload which results in encrypting the file system. The major cyber-attack took again in 2017 targeting Ukrainian companies later the attack was carried on to France, Italy, Germany, Poland and U.S.
Worth of these “digital gold”
- Bitcoins cannot be stolen– As the address of the owner can be changed by the owner itself. It requires a Physical access to the user’s computer to steal.
- No third-party interference– Transaction databases will be stored in multiple copies where the government cannot freeze your money.
- Tax free-As there is no entry for the third party intervention there is no taxation for bitcoins.
- No-Transaction costs-Transaction between the clients requires them to be connected to the nodes, contributing to the network. Thus sharing will reduce the cost of transaction.
- Elimination of paper work– Since all the transactions are online/network based clients may not have to keep the record of the flow which also reduces the attack like MITM and physical theft.
Bitcoins 2020- What predictors have to say……..
- According that the bitcoin will be closer $3,000 by the end of 2017.With no degree of certainty financial experts say that “The Future is Bright” for Indians who invest and make financial transaction digitally.
- The Buying process of Bitcoins will be made much simpler than it is at the present. All indications point that the process will get more streamlined, so that the investors or any general public can blindly choose digital money over paper money
- Thus the Scepticism about these digital currency will be dissolved into a clear picture and provides the road map efficiently.