Question

Explain about Cryptocurrency such as Bitcoin, Ethereum and Ripple? How can this digital currency improve business transactions? Do you think the government should govern this?

Answer 1

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.

Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since the release of bitcoin, over 4,000 altcoins have been created.

a cryptocurrency is a system that meets six conditions

1. The system does not require a central authority, its state is maintained through distributed consensus.
2. The system keeps an overview of cryptocurrency units and their ownership.
3. The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
4. Ownership of cryptocurrency units can be proved exclusively cryptographically.
5. The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
6. If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.

Transactional Properties:

Irreversible: After confirmation, a transaction can‘t be reversed. By nobody. And nobody means nobody.

Pseudonymous: Neither transactions nor accounts are connected to real-world identities.

Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes.

Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency.

Permissionless: You don‘t have to ask anybody to use cryptocurrency. It‘s just a software that everybody can download for free.

How A Blockchain Payment Processor Can Improve Industry Transactions

• A crypto payment system introduces greater liquidity into markets.Connecting a supply chain or retail platform to a payment processor provides a different means of transacting and making payments—opening up new sources of liquidity for the businesses involved.
• Streamlined payment improves efficiency and automation.Supply chains already have individual payment processing systems, but they’re disjointed. They don’t really work in a seamless, elegant way
• A point-to-point transaction can reduce costs for companies.There’s been a lot of news recently about all the things individuals can now buy with cryptocurrency.
• Right now, those existing structures are often specific to one industry or company—and costly to build. A blockchain payment processor takes the burden off individual companies by providing a single solution for everyone in a supply chain or industry. In fact, we’re seeing it happen right now with companies like CoinPayments, BitPesa, Coinbase, and Aliant who are all attempting to grow adoption of their own payment processing systems.
• Allowing companies to process transactions automatically and avoid or significantly lower transfer fees is a huge leap forward in efficiency and cost savings. It may not be as flashy as buying Starbucks with bitcoin, but it’s where we’ll see real, measurable improvement in industries going forward.

when governments get into cryptocurrency

The Federal Reserve Board governor is still not fond of the idea of central digital currencies, despite the fact that the reserve is equipped to issue one

it was also noted that cryptocurrencies were extremely vulnerable to hacks and money-laundering, making it hard for any major financial institution to deal in these assets. Raising concerns about how a national digital currency would affect retail banks, which make loans to the public, Brainard said that the Federal Reserve maintains that issuing central bank digital currencies (CBDCs) is generally a bad idea.