Since its invention in 2008, Bitcoin has created a lot of fuss in the international media. Some people believe that it is the ultimate financial masterpiece of our century. Despite its continued use over the past several years, there are others who think that it is soon going to crash.
With a widespread application in almost every sector of the global economy, Bitcoin has proven to be one of the most secure, fast, and reliable means of payment in both local and international markets. So what is Bitcoin and what technology does it run on?
Bitcoin and the Blockchain Technology
Bitcoin is a cryptocurrency that is based on the blockchain technology. A cryptocurrency is any digital currency that uses cryptography to secure its transaction data. The blockchain technology, on which all cryptocurrencies are based, is the latest revolutionary technology.
Seen as the next big thing after the invention of the internet, Bitcoin and its underlying tech are expected to disrupt every sector and industry as we know them.
A blockchain disruption is described as a new way of conducting transactions by eliminating third parties and centralized systems. It has a decentralized ledger that records all data transactions, which can be accessed easily and can only be altered by authorized parties.
Such a system is entirely different from traditional data storing and transferring systems, especially when applied to the financial sector. Most experts credit it with the transparency of transactions, safety, and significantly lower fees when compared to traditional financial service providers.
Applications of Bitcoin
Bitcoin has multiple applications across the financial world. The number of big and small businesses accepting this form of payment is rapidly increasing. What’s more, Bitcoin has inspired the emergence of many other cryptocurrencies, also widely used as a payment means.
Applications of Bitcoin range from online shopping, asset tracking and storage, booking of tickets, payment of fees, to online gambling. Microsoft, Newegg, Expedia, and Shopify stores are just but a few examples of businesses where you can use this digital currency to complete your purchase.
To find out more information about Bitcoin and the blockchain technology that underpins it, check out the infographic below.
