Cryptocurrencies are strongly making a statement into the modern world order by storming into the global economic structure. Over the course of the last few years, there has been a major shift towards investment and trading in different cryptocurrencies, mainly Bitcoin. The volatile nature of cryptocurrencies is proving highly beneficial for traders, as they are able to amass huge profits over small comparatively small investments.
However, there are many other significant features that have helped cryptocurrency is gaining worldwide popularity and recognition. The use of Blockchain Technology and public ledger to keep a track of anonymous transactions are a few of them. Public ledgers have been something that was much anticipated by economic experts worldwide, as they provided an element of uniqueness to cryptocurrencies. It is mainly a network that could eliminate recording massive amounts of information and transactions, rationalize supply chains and modernize the IT sector in an unfathomable manner.
The ledger in cryptocurrency is called ‘Blockchain’. It keeps a track record of all the transactions while ensuring the integrity and privacy of the client's identity, transactions, and money records, and so on. This has played a vital role in shifting the trading and investing interest towards Bitcoin. This provides the utmost security and privacy and keeps individuals safe from all kinds of fraud and scams. The same copy of the blockchain is provided to each user. Doing so will completely and entirely remove the chances of someone trying to hack into the system, for one to do that they would have to come up with something that surpasses the computing power of every user to make changes in the blockchain for one's own benefit. Thus, this complex mechanism has truly been a breakthrough for the business community.
This high security encourages big organizations, brands, and companies to adopt this method of payment. Some of the major companies and brands have adopted cryptocurrency as a mode of transaction, as it gives them a chance to either sustain their investment or immediately liquefy it into traditional currency without any major inconvenience. According to them, they quickly jumped on this method to secure the data and records of their investments. Blockchain does not limit itself to organizations, but this can also be utilized by music and artists to protect their projects. The time is not far when artists stop signing contracts with expensive agencies and authorizing their work to multiple publishers and shift to the blockchain because this will surely save them from a lot of money and help them in escaping from the complications of a third person.
Public ledger was first introduced to decentralize payment through cards, meaning, when a customer goes to a shop to buy something and is paying through their cards, their transaction will first pass through a bank where their card balance and identity will be checked and then it proceeds with the purchase. During this process, neither the identity nor the card's money records were kept private. Plus, the banks charge a fee for these services. Hence, eventually, people are usually losing more of their money. Despite all of this, the lack of dependency and security can also cause incidents of theft. There have been reported cases where hundreds of millions of dollars were stolen through card-theft.
On the contrary, Blockchain completely gets rid of this issue. From the name, it is obvious that the term contains multiple 'blocks’. It processes the money transactions in blocks, without being dependent on any extra medium, like banks. It functions in a way that it ciphers and verifies the payment, which is accessible to all, eradicating the possibility of a potential fraud even more so.
In order to send anything of worth through blockchain, it first needs to ensure the user that their valuables and transactions will not be disrupted by any other third party. By this, they mean that a third person cannot intervene in the transactions. It is close to impossible to bring out a technology that would be completely 'un-hackable', but public ledger and blockchain provide a lot of security and makes hacking a nearly unimaginable task. Blockchain is the most secure method of payment that has been found to date, and experts consider it as an achievement of the modern digital world.
These ledgers verify the transactions through 'miners. In this context, miners are referred to as computers. These computers are directly linked with the network and are constantly checking whether or not the transaction that has been made is valid or not. Each user who makes a transaction using ledgers does it in a very cryptographical manner and transmits them to the computers. These computers (miners) get a hold of a few transactions which can be fitted into a block, this block then undergoes a mathematical process for its verification.
Despite all the benefits one could get from the public ledger, there are some concerns that people have raised. For example, blockchain has claimed that every transaction which has been made to this date is recorded and saved. Having to keep up with updating these records can become a tedious task as more and more people start to hop on. People are concerned that this is a challenge that might be a bit too difficult to maintain. Hundreds of thousands of transactions every day can crash the system at any point, halting the transactions for a long time.
Additionally, some investors and businesses are having issues with the fact that all their transactions are going to be saved. As they believe that even with the complexity, the ledger can be tracked to obtain a record of their transactions at some point in the future. This can open doors for hackers, government, and agencies to be able to view everything. This completely takes away their security and anonymity and makes private information available to the world. Furthermore, one needs to understand that odds are that all public ledgers are hackable, possible of theft, and can clog a network.