Pros And Cons Of Blockchain

The blockchain is a trust-based technology which empowers users to “be your own Bank” to manage their own financial future. This will openly build connection in P2P network enabling users to communicate frequently and authentically which leads to trust. Further it will greatly reduce cost as it eliminates costly intermediaries and transaction processing time. When the Blockchain wallet is created on the web or mobile app, it enables users to backup wallets to servers and only the user alone has the key to their wallet as the company can’t see user’s balance or transactions (Dillet,

In this article, block chain is compared to CDROM and the rise of the applications it had in the information technology industry. Blockchain is thus, considered a new technology which would take it`s time to become a positive source and get rid of the dark image it has acquired

The dramatic development of blockchain technologies seems to be a double-edged sword. Although cryptocurrency leads to innovative payments and transfers, it may be a tool for criminal usages. In terms of benefits, bitcoins have ability to solve double-spending problems and Ethereum’s smart contract is used for sharing economy. On the other hand, because there is no legal which is responsible for Bitcoin trading activities, Bitcoin is considered as one of the greatest risk to national security through illegal operations involving to financing of terrorism and extremism (Vovchenko et al, 2017). In 2013, for example, the U.S government closed down the largest website, named Silk Road, involved to illegal goods trading, in which there is 1.5% of Bitcoin was used for trading illicit drugs and counterfeit

The block chain database has recently become more widespread in everyday life and some of its benefits has been implemented for the public usage. The governments in several countries has acknowledged the potential of the block chain system. This could simplify the bureaucracy process and provide credibility. Some suggestions have been made of where this database could be enforced. First of all, the block chain system could affect how an ordinary person could deal with property titles. Governments will make it possible for citizens to electronically conduct transactions and queries without lawyers or queuing at government offices. Once registered on the block chain, for example an ownership of a car, a home or other assets to be transferred from one person to another without the need for a government record while still being legal and publicly acknowledged (Forde & Casey, 2016).

Blockchain technology has the potential to restructure large parts of the private investment fund and banking industry. Most legacy systems at private investment funds and banks are much more expensive than blockchain technologies, are subject to human error, and take much more time. Banks charged $1.7 trillion in processing fees in 2014. Because blockchain technology is transparent, verifiable, self-authenticating, and self-enforcing, financial transactions can be executed instantaneously at near zero transaction costs, increasing the efficiency for business and individuals exponentially. These factors in addition to blockchain technology’s disintermediation through technology driven democratized trust, precipitated the financial industry’s substantial investments into blockchain technologies in fear of becoming obsolete.

For example, in stead of payment by cash, transactions can be performed by credit or EFTPOS (Electronic Funds Transfer at Point of Sale) cards. Moreover, this is also a convenience for organizations to finacial management. 2.1.4. Technology 2013 is the year of five high-tech trends of banking industry, which are mobile, cloud, analytics, social, and cyber (Deloitee, 2013). This assignment just focuses on the first three technologies. Mobile banking is a service which customers can perform the transaction, check the balance, or have some feedback by their mobiles. The second applied technology is cloud computing. The US National Institute of Standards and Technology (NIST) formally defines cloud computing as "a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources – networks, servers, storage, applications and services – that can be rapidly provisioned and released with minimal management effort or service provider interaction." There are many advantages of cloud computing which are to use dynamic computing resources, reduce cost, and decrease complicated level in framework of organization, increase ability to use computing resources. By applying cloud computing, the third party will participate in the client experience, but not intervene in the client relationship of the bank. Analytics technology means that data needs to be kept secret to

Currency acts as a store of value, a medium of exchange and a unit of account. Physical currencies are promissory notes payable to the bearer on demand. Digital currencies are internet-based form of currency. They represent both developments in payment systems and a new type of currency. Digital currencies, in hypothesis, serve as money, at present day they act as money to a small amount of individuals and institutions. It has been often questioned as whether the decentralised digital currency, such as Bitcoin and Litecoin, will emerge as the preferred method of payment for Internet Services or will remain a superficial payment method compared to well established existing payment systems.

Bitcoin is a network that enables a different type of payment system it is used a lot for purchasing objects of the dark web and completely digital money. It is the first peer-to-peer payment network that is powered by its users with no central authority or middlemen (someone who buys goods from producers and sells them to retailers or consumers). From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

The online payment marketplace is experiencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a “goat rodeo”, a chaotic situation in which powerful players with different agendas compete with one another for public acceptance, and above all, huge potential revenues. Others liken the payment marketplace to a battle among the four platform titans Apple, Google, Facebook, and Amazon. Each of these titans have their own versions of a future payment system that challenges the other players. And let’s not forget PayPal, the reigning power in alternative online payment, or the credit card companies who process over 70% of online payments, or the

Bitcoin (BTC), a cryptocurrency, is a type of digital currency which was introduced in 2009 by pseudonymous developer "Satoshi Nakamoto". Since then 12 million bitcoins have come into existence with a current market cap of around 8 billion USD [1]. The algorithm is designed as to allow only 21 million BTC to come into existence ever. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network [2]. Bitcoin is not the first attempt. But none have managed before to take off so dramatically and with such wide adoption to achieve escape velocity. The questions which are important now are how the bitcoin managed this success in

Nowadays, the Internet has implemented great impacts on people’s life, and it also has changed the business world significantly. In order for companies to cope up with the changing customer demands, they must adopt new technologies not only to support their business functions but also to reduce paper works, reduce costs, and provide better services. Bitcoin is a currency of the Internet, distributed, worldwide, decentralized digital money that be developed as a new payment method. In Australia, the regulator has defined Bitcoin as property instead of currency for accounting purposes (King, 2015 February). Although Bitcoins are not materially existed, it can be exchanged for goods and services at places that accept it, the same way you would give someone a dollar for a cookie.

Bitcoin is virtual currency system created by a computer programmer using the alias Satoshi Nakamoto and is defined by its lack of a physical form (Craig, Murphy, and Seitzinger). Bitcoin is not a form of legal tender backed by any sort of government body nor is it supplied, regulated, or restricted by a bank (Craig, Murphy, and Seitzinger). An outline of Nakamoto’s bitcoin system was published in October of 2008 before it was released a few months later in January of 2009 as an open source; in layman terms, the computer code became open to the public, revolutionizing the concept of virtual currency (“An Abridged History…”). The bitcoin system successfully implemented a direct peer to peer transaction service derived from the principles of cryptography, or the secret exchange of information by enciphering and deciphering code (Merriam Webster). Bitcoin is a private, decentralized network that ensures all aspects of the exchange are executed by the users of the system, rather than by a central controlling entity, effectively eliminating the need for parties to use traditional online payment systems, such as PayPal or other credit

Bitcoin is the first decentralized peer-to-peer network of payment; with this form of technology there is no central authority or middlemen, it is completely powered by its users. The Bitcoin implements the concept of “crypto-currency”. Crypto-currency is the use of cryptography to control the creation and transactions of the Bitcoin.

To start off primarily, Bitcoin is a digital currency as opposed to physical currency that we’re accustomed to and use in our daily life. Straight off their site, Bitcoin is described as a pseudo-anonymous, P2P technology operating with no central authority or banks, it’s open-source, public, owned by no one and open for everybody to take part; but what does that all mean? “Bitcoin is the leader in a new generation of emerging currencies known as “cryptocurrencies” which aim to, among other things, facilitate the movement of money electronically while still maintaining a sense of privacy,” (Hobson)

Blockchain Technology supports a distributed ledger system and maintains a growing list of records that are confirmed by the participating people. In blockchain framework, each transaction is recorded in public ledger and stores the information of the transaction. In Current scenario, all the currency transactions between persons or entities are centralized and controlled by some other organizations (Interoperability team). Transferring money will needs bank and merchants who process the payments and they charge fee for each transaction. This is the common phenomenon in every domain and this complexity is simplified by Blockchain technology by creating decentralized environment where no interoperability team is required to control the