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Bitcoin Surpasses the $10,000 Mark and Reaches New Heights

a picture of bitcoins

Blockchain Technology

Blockchain emerged as game-changer in the domain of financial technology just like Linux becoming the foundation in contemporary apps development. Industry experts described the platform as a decentralized public ledger that contains multiple cryptocurrency transactions allowing market participants to monitor the digital deals minus any centralized documentation of records.

The platform stands for a standard in sharing information while technology firms and vendors continue looking for ways in utilizing the innovative Distributed Ledger Technology (DLT) to reduce costs and save time. Many business organizations have introduced programs and initiatives across multiple industries from financial entities to mobile payments and healthcare. According to an educator at the Harvard Business School, the foundational technology can create new cornerstones for economic and social structures.

Innovative Technology Disrupts Financial Markets

The Blockchain will dislocate the financial industry but in a positive manner. Even as an upcoming technology, the chain can help cut down fraudulent acts in the commercial world because many con artists victimize money transfer services as well as stock markets regularly. Traditional banking systems depend on centralized databases making them more defenseless against cyber attacks due to a single instead of several points of failure. Hackers obtain complete access to the entire system after gaining access to just one.

Blocks in Blockchain’s distributed record book contain a digital record as well as sets of individual transactions linking to a preceding block. The technology can reduce the number of specific crimes committed against financial entities. The disruption changes or enhances the payments systems allowing higher security and lower expenses for banks in sorting out disbursements. At present, multiple intermediaries mess up the process, but Blockchain eliminates most of the problems.

How to Invest in the Chain

Considering the dramatic surge, more investors have expressed their desire to become part of the BTC market. Other virtual currencies like Ethereum and Litecoin surfaced as crucial players in the stock exchange. Learn the distinct difference between putting money in cryptocurrencies and investing in traditional stocks. Investing in any company means acquiring shares of stocks. On the contrary, investing in Bitcoin or Ethereum for that matter requires purchasing shares and owning a specific percentage.

Experts recommend the BTC which rose almost eight times in value last years and exceeded $8, 000 this year accomplishing newer heights. Or, go for the second most prevalent cryptocurrency, Ethereum which boomed over 3,000% in 2016. But, the price remains less than a tenth of the Bitcoin. Litecoin, a Peer to Peer electronic currency, increased over 2, 000% also last year. The coin’s low price makes it attractive for many investors.

Opportunities in the Future

The Blockchain puts together cryptographic security, preservation, and transmission of coded data with different P2P networks forming a standard electronic file of transactions. Nobody can control the trusted database. Use by many industries can result in a digitally-integrated international monetary system and help improve the global economy.

This technology offers the opportunity of distributing ledgers to users using a vast computer network worldwide. In today’s commercial setting, brokers and intermediaries known as third-parties facilitate lending. The Blockchain gets rid of trusted third parties utilizing instead a protected and encrypted database leading to implications for enterprises requiring payment verification as well as the performance of agreements or contracts.

Bitcoin

As a cryptocurrency, Bitcoin guarantees reduced transaction fees compared to regular payment methods. At present, the market ceiling of the currency exceeds $7 billion. A public record in the cloud contains balances and not physical coins. The BTC employs Peer to Peer technology in producing immediate payments. Independent providers called “Miners” take part in the cryptocurrency’s large network earning so-called rewards in the process.

Miners represent the decentralized authority that enforces the network’s credibility. However, miners get coins at a preset but decreasing rate. Bitcoin users can confirm transactions once one party pays the second party for merchandise or services. Bitcoin protocol dictates that all nodes that participate in the network have access to the database of Blockchain.

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