I hope you already know about Bitcoin, aren’t you? If not, then let me explain you and if you already know then please share your insight if you already know more… especially Indian market perspective.
If I tell you that Bitcoin is a digital payment system. Then it will not interest you much as we already have many in our market like Paytm, Mobikwik, Oxigen, Citrus pay and so-on. And many are still coming to ease our cashless transaction. But if I say if you have 1 Bitcoin in your wallet, then you have more than INR 45,000 with you and bit miner can earn it free!!! Surprised!!!
As per one of the renowned global research firm, Bitcoin is going to be only global currency down the 100 years. It has already been accepted worldwide and many banks offer transaction into it. And why not, since it is transparent, paperless, no need to regular banks, lesser transaction fee, soon so-forth… Who knows the latest attempt to demonetize the older currency and prompt us to do the transaction through online by Modi Government is the right way forward to transform India into the open currency system.
Let me explain in detail… It is secured cryptography based protocol which can be transferred across all communication channels, be it mobile, email, or any medium a peer can have communication with another peer digitally. One needs to install it once in your system and create a user address for you for any future transaction. It will download all transactions across all networks. In this primarily everyone sees everyone ledger.
There are two Keys for every entity a) Private Key b) Public Key
<= Private Key is personally key encrypted with your account number.
The public key is which everyone will identify you in a public platform =>
Signature – Private Key and Transaction message is fed with cryptographic functions. This is unique to each transaction.
BLOCKCHAINS – There is a problem in the aforementioned process that once can identify who sends that transaction, but at what time is not exactly clear. Or one can say few people may re-use, multiple times for the same amount they have to possess. E.g. Ram has INR 100 and he writes 2 cheques to Mohan and Sohan. In this whosoever get to the bank first will get paid (this is easily in manual process, but a challenge in digital framework an order from different worlds with multiple transaction may falter).
To solve this all transactions are put into one pool “called Pending/New transaction” there is it order and transaction chain is created. This link is created with the help of mathematical formulae and cryptographic rules so that next link will get identified easily. Hence this maths provides the chain which everyone else in entire world agrees. So new comers the only trusted transaction chain would be what the majority of people will hold. And miners keep validating this so that everyone else agrees and hence earns his share. In turn Bitcoin is generated.
This way every transaction is linked to previous transactions and everyone on the network agrees. If there is an intrusion or disagreement all other nodes will not arrive at a consensus and refuse to incorporate the transaction. Hence everyone has source to Single-Source-Of-Truth.
Management and Reporting
The world tends to move towards Bitcoin and organisations are moving to take this to the next level. If you convert (map) your all entity towards Bitcoin and divide the fund for your division working, then your burden for Accounting and Managerial staff will get reduced as everything will be traceable and available to all. Financial services are quickly moving towards Bitcoin and primarily non-banking sector like Insurance is now going the extra mile to allow payment and adjustment through Bitcoin. BI (Business Intelligence) system provider is proactively started working on this so that a right solution is ready to get the first mover advantage.
Since it is evolving so there have been some breaches in the past, however, things are getting better and has improved a lot. Many countries/financial institutions have already translated its journey to take a lead. India is still in laggard stage; however, companies line ZebPay, Unocoin etc has already taken advantage of it. Modi government station the INR 500/1000 has given a new hope and life for the digital wallet system. Let’s educate ourselves and be prepared for our future. And say NO TO VITAMIN”M”.