The Role of IT In Cryptocurrency and The Pros and Cons of Switching to The Bitcoin
In reference to Lee, for the purpose of making goods and services proportionate, Aristotle a Greek Philosopher introduced four criteria that can be used to determine good money, (Lee, 2009 Quoted from D’Alfonso et al. He suggested that good money should be durable, divisible, portable, and possess intrinsic value. Initially, gold was the preferred mode of exchange because it met all the four criteria mentioned above. Due to increased demand and growing economies, many governments were forced to adopt a medium of exchange that was accessible and one in which they could regulate and control. This turn of events led to the emergence of Fiat currency. In reference to the cryptocurrency mechanism, a cryptocurrency like Bitcoin is made up of the peer network.
In this network Individual peers have got access to the whole history of all transactions and have information of every account balance. An example of a file is like, “Steve gives Y Bitcoins to Angela”, and the file is then signed by Steve’s private key. There is nothing special about this, it is a basic cryptography public key. After appending signature, the transaction is transmitted from one peer to others across the network. When miners confirm these transactions, every node ensures that it is added to their database and thus becomes a link of the blockchain. After completion of this job, miners are awarded a cryptocurrency token. To indemnify the system against forged transactions the inventor of cryptocurrency Satoshi directed that every miner is supposed to do some investments in order for their computers to qualify for this feat (Blockgeeks, 2017).
Pros and Cons of cryptocurrency There are a plethora of benefits that arise from using cryptocurrencies. Digital currencies are not only good for business owners or business but also for the buyers. Secure- The use of “NSA created cryptography” secures all the transaction you make. This means that It is nearly impossible to make payments if one is not the owner of the wallet unless it gets hacked, there are however many ways to indemnify himself (the owner) against such vices. Pseudonymous- This implies that a person can remain anonymous because neither their accounts nor their transactions are linked to their real-world identity. People won’t be able to know their identity from the blockchain but can obtain information from it.
Transactions are irreversible- once a transaction has been confirmed there is no one who can reverse it (Blockgeeks, 2017). This complex technology calls for a sober mind before ones think of investing. It is Difficult to understand- This new trend is difficult to understand due to inadequate knowledge about the system and therefore, many people end up losing their money after investing. Payments are irreversible- If by bad luck a person makes a mistake and sends money to a wrong receiver, their money is lost and cannot be recovered. The best they can do is to persuade the receiver to send back the money of which if they decline the money is forever lost. Role of cryptocurrency in cybercrime According to Jacob Tuwiner, “Cybercrime is generating at least $1.
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