Since the very beginning of the rush around the cryptocurrency people have been talking about whether the digital coins displace real money or not. Let’s figure this out.
Decentralization and wide dissemination
BTC database is evenly distributed between the similar nodes and is not subject to a single control center. That means that there is no universal lever that would freeze financial transactions, and also stop and recheck the transaction.
The use of the blockchain-registry is available anywhere in the world, without complicated authorization systems for users with a personal cryptocurrency wallet. The blockchain allows you to view all the operations performed in the system.
Having a Bitcoin address, any user can view all his transaction with no exception. Payment information is available from the time the digital coin was created. Databases features allow you to store information continuously, and it will never be deleted.
Wide range of services
Cryptocurrencies circulation involves the use of a specialized software and devices. However, you define the extent of your participation yourself. There are online and offline applications developed for operations with digital money, and they open access to transactions.
The clients downloaded from the official websites, for example Bitcoin Core, analyze the blockchain and store all your transactions history on you PC. If there is no need for that, you can install “light” wallets for smartphones, that consume significantly less resources. Online services will suit the beginners. They are less secure, but are easy to use. Professionals cannot do without the hardware wallets, that look like flash drives.
No total control
There is no way for the state to influence the cryptocurrency market. The very principle of how the blockchain works is built in such a way that any attempts to get control are neutralized. That is why the leaders of different countries approve the circulation of digital money more often. Transactions within the system are conducted with a minimum commission fee, and they are irreversible. Return and exchange are not provided.
Anonymity of operations
The account number in Bitcoin system is called an address and it represents a set of 34 digits and letters in the Latin layout. You do not need documents proving your identity or any other information about the owner to formalize it. The address does not indicate a person it belongs to in any way. At the user’s request the transaction can be completely anonymous. This makes operations with cryptocurrency especially attractive.
Reward for mining
Many people ask themselves: “Where do the bitcoins come from?”. The answer is pretty simple: they are put into circulation as a reward for mining. Mining refers to the computational manipulations of powerful computers that support the network functioning.
If we depict bitcoin mining schematically, it will look as follows: the miner records all operations performed in the blockchain in one block, after the previous one was released. It takes about 10 minutes. Then the block is closed with the help of a cryptographic signature. Subsequent calculations are based on the previous ones. This determines the impossibility of cancelling the transaction. In addition, such a scheme excludes the occurrence of “forges” and “falsifications”. The chains of bonded blocks are called the blockchain.
The blockchain principle is the main guarantee for cryptocurrency security. The chains from the blocks are constantly extended, which means that the more computer power is needed for each new block. The security of the chain is directly related to its length.
Performance indicators of the Bitcoin network already exceed the capacity of all world supercomputers taken together. And this is not the end. The last bitcoin will be issued in 2140, and until that moment the computing processes will become only more complicated.