The ‘demon’ in India that wrote a history favoring the common and making the rich cry, introduced several digital methods of payments. Sudden demonetisation announced by the Modi government to stop the stream of illegal and black money was all appreciated by the common man. The very illiterates faced the problem of money transactions through digital means though the government through its apt measures, appeals and awareness movements pulled the new and needy out of the probable mess. This very decision brought into market the better means of digital payments that include mobile wallets, internet banking, micro ATM’s, etc.
Bitcoin is one such name that provides a decentralized digital currency exchange. The transactions occur peer- to- peer also abbreviated as P2P transactions without an intermediary. Technically the P2P transactions use a distributed database in which not all storage devices are attached to a common processor. Because they store data across multiple computers, this help improve the performance at the end user websites.
A public ledger called the blockchain, records bitcoin transactions. The payment is of the type that the payer X sends Y bitcoins(amount) to the payee Z. The creation of a new group of accepted transactions, a block is created, added to the blockchain and quickly published to the nodes, allows the software to determine when a particular bitcoin amount is spent which is necessary to prevent double spending. The use of multiple inputs corresponds to multiple coins in a cash transaction. This may also have a number of outputs allowing one to make multiple payments in one go. Also known as cryptocurrency, it provides bitcoin(amount) that is to be paid from a person to person or one to many. These Bitcoins are to be purchased investing in them and are then used for transactions. The companies that sell bitcoin in India include names such as Unocoin, Zebpay, etc.
Every user’s bitcoin is stored in a program called the digital wallet which also holds each address the user sends and receives bitcoin from, as well as the private key, known only to the user and that cannot be accessed by an outsider. As an advantage, bitcoin can be exchanged for other currencies, products and services in legal markets but the disadvantage lies in the use of bitcoin in “black” markets. Though easy and user friendly as in case of making payments one to one, the threat of black money exchange increases as there is no centralized power to keep a watch on number of bitcoins (amount) that are exchanged between the two parties. This probably is the reason why the Reserve Bank of India has banned bitcoin in India.
The cashless motto though is well satisfied by this method it also gives a crack to the basic idea of demolishing the increasing black currency in India. Bitcoin thus is termed illegal and the cyber police are swift at their actions to stop the use and promotion of bitcoin in India. As every coin has two sides, the fast and effective service of the software lies on the positive side of the coin tossed in favour of using bitcoin and that the black exchange is the one, probably the strongest reason to deny the use of this software so as to go cashless!
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