Bitcoin: Am I trustworthy?
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This document discusses Bitcoin, providing an overview of how it works as a digital currency without third party involvement, its benefits like privacy and lack of credit cards, and some issues related to trustworthiness, lost wallets, verification of owners, taxation, and illegal uses. In conclusion, it states that Bitcoin can be used for trade if standard laws and objectives are defined and governments are involved.
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There is a lot of controversy around bitcoins. Here we have discussed the top 4 Reasons Why Bitcoins Are Such a Big Deal.
Bitcoin is Differs from Fiat Digital Currencies
Bitcoin can be used to pay for things electronically if both parties are willing. But it differs from fiat Digital Currencies in Several Important Ways: 1. Decentralization 2. Limited Supply 3. Pseudonymity 4. Immutability 5. Divisibility
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Bitcoin: Am I trustworthy?
- 1. Bitcoin: Am I trustworthy? Sharma Dahal, Prabhakar
- 3. Introduction • Electronic form of money • Trademark on the ecommerce • No involvement of third party • Easy, secure and fast method
- 4. Working Transcation TranscationTranscation Owners 1’s Public Key Owners 3’s Public Key Owners 2’s Public Key Hash HashHash Owners 0’s Signature Owners 2’s Signature Owners 1’s Signature Owners 1’s Private Owners 2’s Private Key Owners 3’s Private Key
- 5. Benifits • No more credit or debit cards • Cryptographically secured • Clients privacy is preserved • Mediators are no more necessary
- 6. Issues • Case 1: • If server break down • No standard authentication • Trustworthiness of parties involved
- 7. Issues • Case 2: • If wallet is lost • No method to gain it back • Private keys stolen • Fake clients
- 8. Issues • Case 3: • Verification of the owner • Reuse of same old coin
- 9. Issues • Case 4: • Tax and VAT collection • Standard method to value • Electronic to Printed cash
- 10. Issues • Case 5: • Illegal trade • Money laundering
- 11. Conclusion • Bitcoin can be used for trade. • Standard law and objective should be defined • Government should be involved.