Bitcoin adoption in india sees surge
Dec 08, 2016
Why in News:
- Unocoin, an Indian bitcoin start-up, has unveiled a new app for Apple’s mobile operating system iOS and Google’s Android platform. The app will allow consumers to buy, sell, send, receive and store bitcoins, all in one place, from any remote device.
- Implementation is timely because bitcoin adoption is rapidly ascending in India, coupled with the government’s decision to demonetise Rs.500 and Rs.1,000 notes
- What are Bitcoin
- Virtual currency in BITCOIN system. Created in 2009 by an unknown named satoshinakamato.
- It is a distributed network system, an alternative to electronic transfer. Also called as crypto currency as cryptography is used to make it more secure.
- It is an attempt to replace money transactions with a digital medium of exchange using peer-to-peer networking.
- Bitcoin network share public ledger called the "block chain" which contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction.
- The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending bitcoins from their own Bitcoin addresses.
- In addition, anyone can process transactions using the computing power of specialized hardware and earn a reward in bitcoins for this service. This is often called "mining".Bitcoin mining programs compute an encryption function called a "hash" on a set of random numbers. Coins are awarded every 10 minutes to whichever miner happens to compute a number below a certain threshold. As the Network gets larger hash becomes more complex and in turn miner gets fewer bitcoins.
- Not owned by Individual but by Bitcoin users. Bitcoin Network can work correctly with users having complete consensus.
- Don’t need banks
- Decentralised Network
- There is no physical currency, balances associated with only Public key and Private Key (These balances are kept on a public ledger, along with all Bitcoin transactions, that is verified by a massive amount of computing power. )
- Anonymous currency
Advantage Associated with Bitcoin
- Low transaction cost
- Freedom of payment: No limit on transaction and can send and receive money anywhere
- Information is transparent. With Block chain each user have access to finalized transaction.
- Limitation of 21 M bit coin currency that will last till 2040
- It possible to launder money and buy illegal products. Since Bitcoins can be spent on the Internet without the use of a bank account, they offer a convenient system for anonymous purchases.
- Money laundering
- No regulation
- Possibility of Hacking