Secrets of Digital Currency.
Technology advancement has led to the creation of an important tool of a decentralized financial system called blockchain technology. The blockchain system involves transaction which uses online currency. There are several implications of having this kind of development. The financial record is no longer controlled by a specific part of the world but the management process is done at all levels of the network. It records the transactions that happen for various parties. The blockchain Technology must note every detail of every process carried out in the system. It varies from the normal banks as the record which contains all the transactions is not held by a particular manager but it is in the hands of several people within the network which eases operations and enhances transparency. The blockchain technology system is not at the mercy of any party or even country, but it operates freely.
Digital currency is gaining popularity as it seems to be relatively stable compared to financial institutions which have faced several challenges.
There are no liquidity problems as the money in the system is held by many people who hold money in their digital wallets and cannot be removed without them authorizing. The system has numerous backups which can assist in case the network of one member of the chain collapses.
The banks have an IT system that is struggling to maintain the traffic of the customers. The blockchain technology has enough currency for operations. The payment cannot go through if the person paying does not have enough currency in the digital currency account. The digital currency transaction is smooth, and there is no challenge as nobody can restrain the transaction.
In the transaction, you will find three messages which are the amount in the account, the address of the payee and the money to be transacted. In a case where you have a message you ought to pass to the buyer you can include it and lock it with an online signature. The message is locked under a private key, and only a public key of the purchaser can decrypt the information. The signature is very important as it ensures that a person does not transact twice fraudulently.
Transactions are updated immediately in the system and are mined by people who verify authenticity of the data. Data miners always verify if the information matches with the previous data in the system. The exchange process is stopped in case the data verifiers note any foul play. You shall have to wait for a few minutes for the verification process. It does have to be supervised by a central team of managers as the verifiers are working round the clock.
Stocks may start transacting using the block-chain technology.