Join the Bitcoiner league & become a Trendsetter in the Market!!!

Bitcoin is the first and the most famous cryptocurrency and has been accepted as a worldwide payment system. It is a virtual currency as it works without a central bank or an administrator.  Using Bitcoin, the transactions occur between users, peer-to-peer without involving any third party merchant or bank. There are no intermediaries in between.

Now, before perceiving the idea of Bitcoin, we need to understand the concept of Cryptocurrency and see how it works.

 What is Cryptocurrency?

A cryptocurrency is a digital resource which is defined as the method of exchanging currency using the technique of cryptography in order to secure the digital transactions. Basically, a cryptocurrency is a subset of digital currency or virtual currency. Due to its extremely powerful security system, it is very difficult to counterfeit cryptocurrency. An everlasting feature which you need to definitely note is that it is not issued by any authorized or governing body hence keeping it far away from any kind of government interference or intervention.

What makes Cryptocurrency different from other modes of payment?

1. Makes transactions easy

Using cryptocurrency it becomes very easy to transfer funds between two parties and carry out a transaction. As said, cryptocurrency uses the technique of cryptography which is based on the concept of public and private keys which are encrypted and decrypted at the peer ends.

2. Minimal Transactional Processing fees

The fund transfers carried out with cryptocurrency come with very little processing fees which cut down your transaction costs, unlike the other financial institutions, for example, banks, which levy high processing fees on your transactions.

3. Reduces threat of cybercrimes and hackers

Cryptocurrency is very secure. The main background behind its working is the concept of block chaining which is used to store an online ledger of the transactions carried out using bitcoins. Whenever a new transaction is processed, it is verified and is then combined with previous transactions to create a new block of ledger data. This makes it more secure for the users and at the same time making it tough for the hackers to crack.

4. Useful in other online technologies

Based on the strong concept of the blockchain, people see potential in cryptocurrencies and hence are implementing it in major online technologies like online voting, crowd-funding etc. This is due to its exceptional security realms, the lower transaction costs and its ability to make the transactions easier and efficient.

Mechanism: How it works?

Now, it is really important to know the mechanism of cryptocurrencies before you actually start using it.

Cryptocurrencies consist of a network of peers – and every peer has a saved record of the history of transactions of every account. Whenever a transaction is requested using Bitcoin, the request is broadcasted to the P2P network consisting of different nodes i.e. computers connected across the network. The requested transaction is then validated by the digital network of nodes when the user’s status and other information are validated using algorithms. After successful verification of the transaction, it is integrated with the other transactions and a new block of data is created for the online ledger. Then, the new block is added to the existing blockchain by making it permanent and immutable. Once this happens, the transaction is said to be complete.

When a transaction is said to be completed or confirmed, it cannot be reversed or changed. It becomes an immutable record of the blockchain i.e. it adds to the past records of the transaction and is set to permanent. A transaction using cryptocurrency does not get immediately confirmed; it takes a specified time to confirm and till then it stays in a pending state. As long as it is in pending state, it can be forged but upon confirmation, it is written in stone and cannot be altered.

Role of Miners in Transaction Processing using Cryptocurrency

The single most important unit of the cryptocurrency system is the miners. There are a few roles played by miners here:

1. Only Miners can confirm a transaction. This is appointed to them in the entire system of cryptocurrency.

2. Miners undertake the transactions once they are verified and validated and added to the blockchain. After validation by the miner, they are stamped as legal and spread across the node network. Only when the transaction is confirmed by a miner, the nodes add it to their database making it a part of the blockchain.

3. In order to avoid the delegation of the tasks of a miner to any other party, cryptocurrency has come up with the security mechanism to ‘not-to’ break the system security. As a part of the ruling set-up by Satoshi – the unknown inventor of Bitcoin, a miner will have to find a hash, which will be a product of the cryptographic function that will connect the new block with the existing blocks. This would be like a Proof-of-Work which is based on the SHA 256 Hash Algorithm specifically in case of Bitcoin. It is like a cryptographic puzzle which the miners need to solve in order to confirm a transaction. Only when a miner solves the puzzle, he can build the block and append it to the blockchain. In return, the miner gets a chance to create valid bitcoins which serve the purpose of virtual currency.

Why choose Bitcoin for your Business?

Bitcoin, being a secure and a cost-effective transaction system for your business, can help you reward your customers. Let us see how-

1. Aids Quicker International Transactions

The worst part of transacting international payments online is the extra time which counts approximately 3-4 business days to process the overseas transactions. And it occurs with charging high processing fees for international transfers. On the contrary, sending bitcoins overseas is pretty easy as giving money to your neighbor next door. Nothing can make you wait, or put across any limitations on the maximum or minimum amount of transaction.

2. Puts a limitation on fraud

Online businesses accepting payments through debit or credit cards, or PayPal would definitely know that there are several cases where the payments are reversed after a certain period of time. Paying through Bitcoin is irreversible and secure and comes with an added advantage for the merchants where the cost of fraud is not pushed onto their shoulders.

3. Levy your own fee

There is no additional cost to receive bitcoins but there are several wallets which charge a high amount of money to accommodate quick confirmation of your transactions. Many wallets even let you control the amount of fee to pay while spending while some have default fees. Important to note here is, that the processing fees for sending bitcoins are totally independent of the amount. So, you can charge the same fee for sending 1,000 bitcoins and 1 bitcoin.

4. Avail the advantages of free visibility in the online market

While Bitcoin is still emerging in the market, it is finding ways to target new customers who are looking for ways to spend their bitcoins. Including bitcoins in your payment method can help your business get new visibility in the vast pool of internet marketing. Accepting a new payment model has proven to be a great working strategy for online businesses. Once you start accepting bitcoins, you can get your business listed in the local directories and give it a boost by engaging with new channels and getting a new exposure.

5. Use multi-signatures for improved authorization

Bitcoin comes jam-loaded with a feature of Multi-signature which ensures that until a group of high-level leads authorizes or officially approve the transaction, nobody can spend the bitcoins. This feature is introduced to prevent any member to transact without proper consent from the higher management. This also helps to track which member approved which set of payments.

6. Successful in the Non-Profit Industry

Bitcoins have aided the non-profit industries and the local charity organizations by raising awareness and helping them to fund donations across the globe. Being an efficient medium for transacting online, bitcoin helps to keep donations alive and raise funds in an easier manner without bearing the additional cost of processing.

7. Leverage Bitcoin community for growing your business

The Bitcoin users love supporting their community and generally go out of their way to support businesses clinging to Bitcoin. They are willing to spend their bitcoins and have a vision in their minds to grow the community of users opting for Bitcoin in their businesses. You can literally take your business to the next level by engaging with these enthusiasts and host meetings to accept Bitcoins for your business.

8. Provokes you to become a Leader and not a Lagger

Most companies fear to implement new strategies in their businesses and thus simply follow the old tactics already used by their competitors. They implement the strategies just because everyone else has done it – be it marketing their products on Facebook or Instagram or using Ad marketing to promote your business.

Bitcoin provides an opportunity for the businesses to bring a change today and not after ten years when everybody would be using it already. “To see the change you need to be the change” and that change is Bitcoin.

Conclusion

 The revolution is already happening. So why stand beside and merely watch? Bitcoin is here to stay and make a way for your future evolution. Discover the power of cryptocurrencies and take a step now to become a part of the history of the cryptocurrency enthusiasts. So, hurry and Join the Bitcoiner league today…