Bitcoin and other Crypto Currencies works by using what’s called the blockchain, this is a sort of public ledger that’s completely decentralized, It keeps record of transactions securely permanently cementing the data within the blockchain. This makes it ideal for future auditing. Also, due to its nature, downtime is highly unlikely due to the way it’s distributed. Because of all these things, the blockchain technology is highly appealing for a wide array of applications across several industries. Of course the application we’re interested in is Crypto Currency.
- Secure: This is possibly the most appealing aspect of any system associated with the exchange of currencies. No single person or participant can affect data stored on the blockchain, making historical data tamper-proof. In addition, this technology is constantly being improved to ensure that once data has been input into the system, it cannot be altered.
- Authenticated: Each transaction made on the blockchain needs to be associated with an identity. This makes transactions transparent, given that specific types of authentication are required, based on the transaction being requested.
- Shared Data: With data being stored across the blockchain network, the problem that traditional databases face, such as the server being overloaded or downtime, does not affect a blockchain. There are several copies of the data, stored throughout the network, with each participant having access to the entire ledger. This also protects the system against disruption and attack.
- Auditable: As mentioned above, with each transaction being associated with an identity, the audit trail is transparent. The complete history of a blockchain is saved across multiple nodes, such that it can be viewed easily by an auditor. In short, blockchain technology provides a safe way to transact cryptocurrency, while maintaining all records of transactions.
This combination of features means that Crypto Currency is amongst the most corruption proof options on the market. From a traders perspective it offers a constantly fluctuating, legitimate environment in which it’s possible to create large profits every day. The blockchain is essentially the backbone of Crypto Currency markets and keeps them on par in terms of legitimacy with traditional currencies.