Among the most efficient ways to transfer money online in this day and age turns out to be Blockchain. It is secure to the point of being almost airtight, and with rising popularity and soaring prices of cryptocurrency like Bitcoin, it is turning out to be pretty profitable for people who collect cryptocurrency as a means of investment.
Structurally, Blockchains are among the safest technologies we have available when it comes to exchanging money. Also, since there is little restriction on how much you can spend your money, and so sending payments across borders becomes easier. Here’s how the technology works.
You purchase a Bitcoin from the market or mine it. You can trade your BTC online in return for products and services, no matter where the seller is located in the world. When you use Bitcoin to exchange a sum of money online, the transaction is recorded in a format that is unalterable and which ensures security. This record is called a Block.
This block your transaction creates is then copied and stored to multiple devices in the system. This makes sure that even if one record is altered, which by itself is pretty hard, there are many other copies of the data in the system that can be used to disqualify the fake record. Locating and changing all the copies of the record becomes simply impossible for any computer available in contemporary times.
While Blockchain has several other applications, some of which are extensively employed, like inventory management or package tracking, cryptocurrency like Bitcoin remains the most well-known avenue it has been applied in. There is more about the technology that has been summarized pretty effectively in the infographics below:
Stacy Miller is the owner of Techiespad.com