Effect of Blockchain Technology and Bitcoin on Financial System

After the creation of internet cryptocurrencies and their underlying blockchain are being touted as the next big thing. The financial sector is going to be influenced profoundly because of this technology. The blockchain, as a form of distributed ledger Technology has the potential to transform the well-established financial institutions and will lower the costs. Faster execution of transactions, enhanced transparency and other benefits. Cryptocurrencies hold the commitment of a new native digital asset class without the authority of the central. ELLIPAL is the best bitcoin wallet having numerous benefits.

The financial sector soon will undergo a sea of change and this will happen only because of blockchain technology, which empowers bitcoin transactions and also offer various benefits in comparison to conventional banking.

How bitcoin works?

To explain in simple words, bitcoin works exactly like sending an email. Basically, it comprises of public ledgers where the change on the balances takes place when a transaction is carried out. Blockchain is the protocol that is used by Bitcoins.

What is blockchain?

It is the main ledger that keeps track of every transaction that is made in the real time. It contains a series of chronological number that accelerates chronologically after each transaction made. Each of the accounts also have a private number which contains only the binary digits. These binary digits or codes refers to the contracts, ownership which gives the most anonymity of bitcoin users. After each transaction these codes get updated. So, it can be said that after each transaction there is no trace who was engaged in it. The unit of the bitcoins are not made available to any of the users who are engaged in the transactions.

Advantage and disadvantage of bitcoin

  • There is no central authority in the bitcoin network. This means that a person is in control of his or her money with bitcoin
  • Bitcoin can be backed and encrypted and this will ensure the safety of one’s money
  • Bitcoin cannot be manipulated by any person, organization and government
  • Bitcoin safeguard against identity theft
  • Before applying to the lives of people, they are required to be educated
  • Before adding any kind of changes merchant talks with the consumers

Disadvantages

  • Due to various advantages the bitcoins are accepted by the business
  • There is limited number of bitcoins and by each passing day the demand for the bitcoins will be increased
  • The price of Bitcoin will gradually settle down, as more business, trading centres have started accepting bitcoins. Offline bitcoin wallet has the same impact on the financial market.

Impact of blockchain technology and bitcoin in the financial market

Blockchain has the potential to displace any activity of the business built on transactions taking place on the conventional corporate database, which is what underscores nearly every financial service function. For the last few years bitcoins have been used as currency, recently ELLIPAL has attracted the attention of the financial sector. It is the best cold wallet in financial market. It is expected to have an impact in three important ways: by generating new customers, compulsion of the banks to make profit and not incur loss and advancement in technology to amalgam the two. Hence it can be said that in the near future blockchain technology and bitcoins are going to create a huge impact on the financial market.

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