Cryptocurrency is the latest thing that is gaining the most attention. On the other hand it is based in the new technology is basically, its power is not fully understood. On the other hand, at least in the current form, it fully complements the functions of other, more traditional goods. A typical equity currency model is being developed to study the positive structure of a blockchain-based cryptocurrency system. Model then measured in Bitcoin transaction data to do a scheme quantity test. We do the critical things of a cryptocurrency. A blockchain to store transaction history, distributed updates for details and competitive agreement for such updates. We show that, unlike money, the digital money system does not support fast, final payments.
Since the creation of Bitcoin in 2009, many cryptocurrency cryptocurrencies have been introduced Bitcoin is the most effective. It has been gaining a lot of media attention, as well as its content Market value reached 20 billion USD in March 2017. Most importantly, many central banks recently started testing cryptocurrency and blockchain technology acceptance with sales fees and high prices. For example, People’s Bank of China aims to develop digital currency nationwide based on blockchain technology. Bank of Canada and Mali Singapore official studying its use of payment systems between banks; Deutsche Bundesbank has launched the first blockchain-based payment system for financial assets. Many sponsors believe that cryptocurrency and blockchain technology will be important influence on the future development of payment and financial systems.
Anonymity, Privacy, Confidentiality
Bitcoin exists in a state of incompatibility between anonymity (in the sense that real ownership is not required use the system) and tracking (because everything is recorded in a blockchain, which is public, an irreversible book, as well as a universal book). In practice, the privacy of vanilla Bitcoin comes from a secret. Users can create as many addresses as they like and swap their coins around, until you create each new address in practice. But this paper shows that the "address combination" can be very effective, using a combination of heuristics to put together all the counterfeit controls controlled by a person or business. Anonymity in cryptocurrensets is not just a matter of personal privacy, but also the confidentiality of businesses. Given the strategies to analyze the graph of advanced transactions, without monitoring, the blockchain could not easily disclose cash flow and other financial information.
The future of cryptocurrencies – advantages and disadvantages
There are differing and conflicting theories about the future of cryptocurrencies in general and bitcoins in particular. However, those with libertarian views on life are optimistic and receptive the cryptocurrency system, some authors, economists, and experts from the field are not is enthusiastic about the use of cryptocurency in the payment and financial system transactions. The prospect of using digital currency is based on the fact that they do it is easy to transfer funds between two parties in a transaction. This transaction is made easier by using public and private keys for security purposes. This transfer was made with minimal processing, which allows users to avoid the high fees charged by most banks. In addition, many countries have begun to accept bitcoin as a legitimate currency. In particular, countriesthat purpose of withdrawal has a friendly approach to cryptocurrensets. The argument is that The promoters of bitcoin use are Market Capitalization for bitcoin, ethereum and more cryptocurrensets, say that the digital currency market has become much larger and more powerful, so prevention can be costly in any country.
- Very fast, easy and cheap to use.
- Cheap (Or Free) than other things like PayPal, Payoneer etc.
- completely protected
- Your information is completely secure.
- Peer-to-peer transactions and everyone can see each transaction.
- No transaction limits
- Payment is non-refundable.
- If you lose your wallet, there is no way to get it back.
- Not all websites accept these digital currencies, only a few websites.
Benefits of using digital currency in simplifying trade, lowering costs, and the like, is well-known to most professionals. Bitcoin too some cryptocurrensets have the power to change traditional and new payment methods. However to achieve that and have greater power in the global payment system, they have to provide a different rising value, to deal with overcoming many critical challenges, such as official legal issues. That is unlikely to happen in the short term. But banks should consider the technology that supports these cryptocurrensets as an innovative new method to transfer value ownership in the long run.