Ankur Agarwal is the author of “The 2nd Wave of Bitcoin Is Coming: Are You Prepared?“. He is the multimillionaire cryptocurrency and email marketing specialist. Ankur is also an ICO advisor, he has invested a lot in bitcoins and other cryptocurrencies. Today we share some insights on Decentralized nature of blockchain technology.
Bitcoin was the invention of Satoshi Nakamoto in 2007 which laid the first stepping stone for the introduction of cryptocurrencies in the financial market. It maintains a distributed ledger commonly shared among the network authorities and follows a decentralized approach. The market then flew off with thousands of companies producing digital coins and getting registered under the global exchange.
Going ahead, we will be talking about the evolution of Bitcoins, Blockchain Technology, and the decentralization of the Blockchain Technology.
It runs on Blockchain technology where each block holds the address of its own along with its parent block and hence it provides complete transparency to track the transaction records. The decentralized approach of Bitcoin lets the users conduct direct transactions with the merchants without involving any third party authority in between. This makes Bitcoin more secure as it saves the user’s personal details like debit card, credit card information from the prying eyes and provides high-end security.
Bitcoin also encourages you to do your transactions at ales settlement fess compared to banks charge for credit cards and even facilitates you to convert your digital currency into fiat currencies like USD, Euro, Russian roubles and all other major currencies with instant deposit and withdrawal feature.
It has emerged as one of the dominant cryptocurrency in the digital world and has been trending widely in the market from the last few years.
There is now n number of payment gateways that give their customer a feature where one can pay via bitcoins which have also resulted in user’s convenience, entertains the users to enjoy an array of entertaining online games to earn Bitcoin cash and even helps you become a professional online trader.
Why Decentralization is important?
The process of decentralization started back in the early 1950’s when the majority of countries began giving some part of public property and business to private investors which in turn helped the government to look into public prosperity and ways to make their economy stable. This not only assisted in paving the way for a common type of economy for newly independent countries but also gave them an extra space to grow and think about the growth of the economy.
With the emerging popularity of cryptocurrencies day by day, you must be thinking what is unique about them and why developers and financial industries are running after it? It is because of its decentralized approach. Compared to the centralized system till date where online trading whether commercial or non commercial runs on the involvement of a centralized authority called the banks which if holds your trust by its safe transaction procedure, on the other hand, makes you more prone to online frauds by disclosing your private bank account details, credit, and debit card numbers. All online frauds of getting accounts hacked through various applications today are one of the results of this centralized approach.
Decentralization on the other hand through the cryptocurrencies eliminates online frauds, makes the merchants run their own business independently without involving any third party and at the same time gives consumers all the facilities without involving real money. It gives you an ingenious way to trade online without exposing yourself to the hackers.
The encryption level of the decentralization process done through Blockchain technology is exceptionally high and provides complete transparency between merchants and customers. Unlike the centralized approach where online ledgers are maintained having an individual copy with each involved in the network and make it prone to the errors, the decentralized system works on distributed ledger where one copy is shared equally to all involved in the network and minimizes errors and misinterpretations of data.
It also makes you do faster transactions without redirecting to the bank page. It serves a dual process. On the one hand it saves your real money in transactions using digital currencies and on the other hand, lets you convert those currencies easily into fiat ones at low cost which in case of a centralized system is a time-consuming process charging higher fees.
Due to the independent, safe and secure features of decentralization approach, it is being encouraged today by all commercial and non-commercial sectors and is expected to transform the financial market entirely in the upcoming years.