Modernization and industrialization have influenced all wakes of life. They go hand in hand with technological development. As a result of the interplay amongst the aforementioned revolutions, a unique phenomenon that has emerged is crypto-currency: a digital currency that aids in financial transactions which is bond to cryptographic functions making it nearly impossible to forge or double spend. In 2009, first-ever crypto-currency, BITCOIN was generated by a group of people who go by the name Satoshi Nakamoto. It is extensively used by various companies and individuals around the world.
Each transaction can be verified either by downloading the full copy of a blockchain, however, is a complex process, another way is to consult clients to engage in bitcoin transactions without receipt of the entire blockchain. All the essential documentations of the followed procedures are stored with the online wallet rather than the accountant holder’s hardware. Hence the transactional accounts of an individual are never lost. The bitcoin is fictitious in the sense that the funds are tied to bitcoin address and not the real-world entities. Even though the transactions are public, the owners are not identified explicitly. Each transaction can be linked to a company and new bitcoin address can be generated for each transactions.
Use of bitcoin in India
However, it is unfortunate to bring to your notice that India does not have a positive view towards bitcoin and government committee have draft a bill that recommends to bring a ban on all the virtual cryptocurrencies and a fine payment or 10 years imprisonment for any activity related to virtual currencies in India. However, on the brighter side there are no laws implemented as such, the Supreme Court has asked the Indian government to come up with cryptocurrency regulation policies. Converting btc to inr is quite convenient.
Given that cryptocurrency has drawbacks of its own however if appropriate measures are taken, it is a powerful aid to achieve a cashless society- the goal put forth by the present Prime Minister.