Bitcoin and the Emerging use of Blockchain Technology.docx

Bitcoin and the Emerging use of Blockchain Technology.docx...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Bitcoin and the Emerging use of Blockchain Technology Background on Bitcoin Bitcoin is an electronic currency system, which was created in 2009 ( Bitcoin overview ) (WeUseCoins, 2014). Its purpose is for purchasing products via electronic coins anonymously anywhere in the world, by the ease of mobile devices and computers. People can also sell or buy bitcoins using different currencies on its bitcoin exchange marketplace. These bitcoins are stored in consumer’s digital wallets located on either their computer or phone; it works as a virtual bank account. The main attraction point of this currency is how it’s decentralized, meaning that the government does not control it. In theory, this means that a central authority cannot take away individuals Bitcoins or manipulate the value of the electronic monetary system in general. Also, this type of digital money is straightforward to set up and anonymous; there’s no need to give your personal information and little to no fees for set-up or transfers. Bitcoin gained most of its popularity when its price index jumped about 360 percent since the start of 2017 (1 Bitcoin = 5710.00 US dollars currently), making it the most favored decentralized currency in the world today (Weber, 2016). The price of this coin is determined by the market in which it trades, which makes this money extremely volatile. It’s expressed that the Bitcoin Foundation “is uniquely positioned to facilitate communication, cooperation, and integration towards a shared purpose (The Bitcoin Foundation, 2016).” Background on Blockchain Technology Similar to Bitcoin, blockchain is decentralized and digitized ( Blockchain overview ) (Blockchain, 2017). It is an incorruptible public ledger of monetary transactions that can be programmed to record almost anything with some form of value. It’s built like the internet (durable and robust), and it cannot be controlled by a single entity and has no single point of failure. Blockchains are made up of blocks, which are responsible for recording recent transactions. Once those blocks are completed, they turn into a permanent database in a Blockchain. With that said, many blocks make up one blockchain, and they are connected to each other chronologically (Merlicek, 2017). Blockchain was initially developed to function as an accounting method for Bitcoin (Yellin, Dominic, & Jose ). Currently, this technology is attracting an array of institutions, including financial, insurance, music, and diamonds (Merlicek, 2017). In addition, the first international blockchain transaction was recorded last year, and it’s expected to grow more over the next couple of years. Many advocates express that this distributed ledger technology could provide free cost savings by not having to use third-party payment processes and transfer fees.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '12

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern