For youtube video please visit - https://www.youtube.com/watch?v=lHW4DYYekFk&t=64s
A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange
It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency.
cryptography is the art of writing or solving codes
Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
There have been many attempts at creating a digital currency during the 90s tech boom but inevitably failed.
Notably, all of those systems utilized a Trusted Third Party approach, meaning that the companies behind them verified and facilitated the transactions.
Then, in early 2009, an anonymous programmer or a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin.
It is completely decentralized, meaning there are no servers involved and no central controlling authority. The concept closely resembles peer-to-peer networks for file sharing.
Essentially, miners are providing a bookkeeping service for their respective communities. They contribute their computing power to solving complicated cryptographic puzzles, which is necessary to confirm a transaction and record it in a distributed public ledger called the Block chain.
But how do miners make profits? The more computing power they manage to accumulate, the more chances they have of solving the cryptographic puzzles. Once a miner manages to solve the puzzle, they receive a reward as well as a transaction fee.
If you happen to own a business and if you’re looking for potential new customers, accepting cryptocurrencies as a form of payment may be a solution for you.
There are many different services that you can use to be able to accept payments in cryptocurrencies. For example, CoinPayments currently accepts over 75 different digital currencies, charging just 0.5 percent commission per transaction. Other popular services include Cryptonator, CoinGate and BitPay, with the latter only accepting Bitcoins.
The authorities all over the world are worried about the cryptocurrencies’ appeal to the traders of illegal goods and services. Moreover, they are worried about their use in money laundering and tax evasion schemes.
As of November 2017, Bitcoin and other digital currencies are outlawed only in Bangladesh, Bolivia, Ecuador, Kyrgyzstan and Vietnam, with China and Russia being on the verge of banning them as well. Other jurisdictions, however, do not make the usage of cryptocurrencies illegal as of yet, but the laws and regulations can vary drastically depending on the country.
1. Bitcoin
Learning Objective
• What is bitcoin
• History of bit coin
• Application of bitcoin in business
• Legality of cryptocurrencies
Neeraj Bhanot
2. A cryptocurrency is a digital
or virtual currency
designed to work as a
medium of exchange
It uses cryptography to secure and
verify transactions as well as to
control the creation of new units of
a particular cryptocurrency.
Essentially, cryptocurrencies are
limited entries in a database that no
one can change unless specific
conditions are fulfilled.cryptography is the art of
writing or solving codes
3. There have been many attempts at
creating a digital currency during the 90s
tech boom but inevitably failed.
Notably, all of those systems utilized a
Trusted Third Party approach, meaning
that the companies behind them verified
and facilitated the transactions.
It is completely decentralized, meaning there are
no servers involved and no central controlling
authority. The concept closely resembles peer-to-
peer networks for file sharing.
Then, in early 2009, an anonymous
programmer or a group of
programmers under an
alias Satoshi Nakamoto introduced
Bitcoin.
4. Application of bitcoin in business
Mining
Essentially, miners are providing a bookkeeping service for
their respective communities. They contribute their
computing power to solving complicated cryptographic
puzzles, which is necessary to confirm a transaction and
record it in a distributed public ledger called the Block
chain.
But how do miners make profits? The more computing
power they manage to accumulate, the more chances
they have of solving the cryptographic puzzles. Once a
miner manages to solve the puzzle, they receive a reward
as well as a transaction fee.
If you happen to own a business and if you’re looking
for potential new customers, accepting
cryptocurrencies as a form of payment may be a
solution for you.
There are many different services that you can use to be
able to accept payments in cryptocurrencies. For
example, CoinPayments currently accepts over 75
different digital currencies, charging just 0.5 percent
commission per transaction. Other popular services
include Cryptonator, CoinGate and BitPay, with the latter
only accepting Bitcoins.
Accept as payment
5. Legality of cryptocurrencies
The authorities all over the world are worried about the
cryptocurrencies’ appeal to the traders of illegal goods
and services. Moreover, they are worried about their use
in money laundering and tax evasion schemes.
As of November 2017, Bitcoin and other digital
currencies are outlawed only in Bangladesh, Bolivia,
Ecuador, Kyrgyzstan and Vietnam,
with China and Russia being on the verge of banning
them as well. Other jurisdictions, however, do not make
the usage of cryptocurrencies illegal as of yet, but the
laws and regulations can vary drastically depending on
the country.
