The Most Significant Innovation: Bitcoin Or Blockchain?

Name Course Date The Most Significant Innovation: Bitcoin (CRYPTOCURRENCY) Or Blockchain? Over the past few years, there has been a rise in interest in paperless transactions. This has in turn resulted in the growth of online transactions, such as PayPal and skrill. Transacting with paper money increasingly became difficult since one had to keep on carrying it around, as well as the need to change into the required denomination for each transaction. With time however, there came the need for increased security in this paperless transactions, as well as the need to freely transact without being bound by the denominations of currency being traded in. This gave rise to the development of blockchain technology and cryptocurrencies. Investing in cryptocurrencies has thereby become one of the most common topics in the business world presently. The current and previous economy was primarily based on the aspect of trust. All the transactions worked based upon two or more individuals or entities had some considerable levels of trust. The basis on trust was in everything, from financial transactions, to business, and even to the political system. Such transactions will in most cases involve third parties too. For example, the owner of a product, the means to send it, and the recipient. The problem however, is that with the increased sophistication of mankind, such third party transactions are now under the threat from hackers. Given all the hype that encircles Bitcoin; fortuitous viewers frequently fail to notice the interesting and revolutionary technology which corroborates it, that is the Blockchain. Blockchain is the most significant technological innovation ever in regards to transactions. Several experts have aired their concerns regarding the unpredictable future of Bitcoin. However, the same experts affirm their belief in the future of blockchain. They believe that it is here to stay. The future of blockchain is demonstrated by notable instances of how it has begun to alter or positively impact how individuals and/or organizations communicate for the better. There is first of all the need to understand the two. Blockchain can be interpreted as some form of an arbitrary point from which transactions and authorizations to these transactions can be done, without there being the need for a central authority. It enables online financial operations to be secure and efficient while at the same time, more transparent and hence clear of fraud. Bitcoin on the other hand, is just a form of digital currency that uses various encryption procedures to create and transfer funds. For bitcoin to work, it has to use the platform set up by block chain technology. In blockchain, each computer or user on a given network is provided with a database, each with its node. The database contains a record of everything each user needs for a given operation. These records are identical for each user, and hence, each has got complete authority on what to do about it. This is the concept of decentralization of authority, through these distinct blocks set up by the system. Bitcoin has for a while been hailed as the ultimate cushion against any economic fluctuations around the globe. It has hence been seen as a stable alternative to the otherwise volatile cash transactions...