Bitcoin works on the blockchain network which contains multiple peer-to-peer connected users who share information anonymously. The blockchain network is highly secure and maintains user anonymity due to the architecture of data flow in the system. Every time there is a new transaction happening each block in the system has to verify the transactions to consider it to be valid. This thorough process of simultaneous verification makes Bitcoin a highly reliable shared ledger system.
The online lottery ledger system initiated as a cryptocurrency by selling coins for 0.0008$ in their very first trade-off in the year 2010. Now, a Bitcoin has a currency value of more than 8000$(US).
Security
While cryptocurrencies are generally cited to be secure, in the real world, things can be a little different. An error in the user address of the recipient can prove to be devastating since transactions are irreversible. In case the user is storing the wallet file locally, a hard disk crash can wipe out millions of dollars at once.
Therefore, central banks are now investing time and money in research to implement their
cryptocurrency. Recent times have also brought to the forefront of the geopolitical tensions between countries. The use of the hegemony of the US dollar in the trade wars launched by Donald Trump has sparked a backlash in the affected countries, who are now looking at cryptocurrencies as a neutral international unit of settlement detached from the interests of
one particular economy. Cryptocurrencies could, therefore, become the future of international trade.
