Blockchain And The Virtual Currency

Blockchain are generally a concept of interconnected links of data blocks such that they cannot be modified later and store the given data. The concept of blockchain originated to keep the transaction records of the digital or virtual currency now mega popular Bitcoin. It is an open distributed ledger that records the transaction between two parties and keeps it untampered and verifiable for future enquiry or other purposes.

Blockchain was created by an alias named Satoshi Nakamoto in 2008, to keep ledger of the cryptocurrency Bitcoin. The identity of the creator is till unknown. The blockchain does not have a central authority so checking the details of transaction is more clear hence its accountability and theft crime detection will be barely cumbersome.

A blockchain does not carry a transaction cost. While the transaction of bitcoin takes place a block is created which is easily trackable by the sources or the connected computers over the network. It uses the method of Hashcash – where the blocks keep on adding in a form of tree without being signed by a trusted party. The two main attraction of blockchain is that its decentralised and open for anyone from anywhere to see the transaction.

There are three types of blockchain – Public blockchain, Private blockchain, Consortium Blockchain. While public and private blockchain define themselves by there meaning the consortium blockchain is semi-decentralized i.e. more than one company can handle the blockchain nodes while it require permission to be used.

Now as blockchain carries transaction details of cryptocurrency Bitcoin. Let’s see what is Bitcoin or other cryptocurrencies..

Virtual currency means the money that is not hard but is circulated among the people by a centralized source or bank. Its transaction receipts are kept as a soft copy the supplier or the software managing the currency. It can be used through a software, mobile or any two devices that can interact on a platform of currency exchange. There are many cryptocurrencies like Bitcoin (BTC), Ethereum(ETH), Ripple (XPR), Bitcoin cash (BCH), Stellar lumens (XLM) etc.

Bitcoin was created 10 years ago and in 2017 it has been noted there are 2.9 -5.8 million active users of Bitcoin. It is an electronic currency made by a group of people under the alias of Satoshi Nakamoto. It is given as reward of mining. Right now as of this instant the value of 1 Bitcoin is equal to 2,72,917.21 Rupees. Its value changes every instant and is kept i track using blockchain. It is used around the world for hefty transaction of things and also for illegal things which is one of its disadvantage.