Cryptocurrency Solutions

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Using Bitcoin as an example we will outline the advantages of cryptocurrency over the current banking system

Bitcoin is the first decentralized digital currency, it uses cryptography to control its creation and management, it is created and held electronically in a peer-to-peer open ledger called the BLOCKCHAIN which has been explained earlier thus we understand what it is by now. Ledger is produced by people using software that solves mathematical problems. Every block created in anonymous.

  • Bitcoin has a decentralized power. It has a distributed ledger over a wide range of networks
  • Public ledger – The bitcoin ledger is open for the public to access, since 2009 that bitcoin has started all transactions on it can be viewed by the public
  • It has no central network as everyone can transact directly without government banks or interference from any third party
  • Immutable to hacks – Bitcoin transactions cannot be hacked; it uses a proof of work system that ensures transactions are verified by the P2P network before it is accepted
  • No double spending or double transactions – this means every transaction sent through the network is confirmed by both parties thus eliminating double transaction
  • Anyone can use it
  • Transfer is authoritative
  • Wallets can’t be stolen except given out
  • Tamper proof transactions which mean there is no reversal of transactions once it is confirmed by the network
  • Open database
  • Cannot spend a coin twice, only one transaction per network unlike the traditional banking system where one cheque can be used to pay different people which can then be duplicated and used to pay others
  • No barrier to entry and exit, wallets can be generated in a matter of minutes
  • Location is not a barrier; you do need to visit any physical location before transacting
  • Enables a barter system as well
  • No account limitation, there’s no limit to the amount that can be transferred and received in a day

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