The concept of cryptocurrency has initially launched into the market by Satoshi Nakamoto. This is an electronic currency that revolutionized payments or transaction services. The Bitcoins allows you to make transactions by remaining anonymous without revealing your actual world identity. The major advantage is that there are no middlemen involved.
Mechanism: Blockchain is a database that tracks all the transactions happening over the Bitcoin system or network. The technology also tracks the total money held by each Bitcoin address. New addresses that are being generated are recorded. The blockchain updates all the info regarding the latest changes happening on the Bitcoin network.
Decentralization: The decentralization feature of the system is making it widely adopted. It is not governed by any central bank or government or any authority. This entire system works on the generated electronic currency by employing software. The authorization and security mechanism is dealt with by a branch of maths called cryptography. This virtual payment system on a verified environment offers more convenience than conventional currency.
Transparency: When governed by an institute or bank, few consumers or companies may experience discomfort by lacking total authority over their assets. The Bitcoin network is open and not owned by any single person. The transactions are secure and their integrity is safeguarded. With no validator available, you do not require to disclose your details while making transactions. You are only identified by the address of your Bitcoin. With its transparency, the ongoing development of any transaction can be viewed by all users.
However, the exchanges would carry out a process of identity checking prior to approving a user to send or receive Bitcoins by law. Therefore, the platform is legitimate to perform transactions. With a great degree of divisibility, the bitcoin price can be divided into small units that allow you to carry out microtransactions. This is not possible with any conventional electronic currency service.