The revolution of blockchain is upon us, with the smartest and brightest minds in the world trying to work out its implications and its application. So far its widely-known application has been on Bitcoin, the crypto currency created in 2009 by a person using the alias ‘Satoshi Nakamoto’. Bitcoin enables decentralised transactions without any credit card or central bank intervention. It allows users to transfer currency with the help of the Internet, and blockchain is the underlying technology that helps clearing transactions and supports the process of mining and pricing bitcoins.
It is critical to secure bitcoin wallets from hackers. Bitcoin transactions are not reversible and are anonymous with a two-factor authentication, thereby making it safe. But the backup location should also be protected,” says Rajashekara V. Maiya, AVP and Head – Finacle Product Strategy, EdgeVerve.
Every time a transaction happens, it needs to be verified and validated between the members of a network. The process of verification is carried out by ‘miners’ who create a ‘block’ of all the transactions occurring over the bitcoin network in every few minutes. The banks/ members of the network only are privy to the transactions performed, under blockchain technology.