Bitcoin, The Decentralized Network
As much a spur the internet created when it was first introduced in the market, a similar uproar was seen in 2009 when the world got to know about Bitcoin. While in the earlier days, Bitcoin was majorly known for peer-to-peer interaction, but later it was realized that its underlying technology was a key difference creator. As of now, Bitcoin runs on a decentralized platform, Blockchain.
This distributed ledger technology nullifies the need to have a third-party approval or regulation. The two interacting parties directly interact with each other without the need for having a third-party approval. This decentralized network is not only helpful in Bitcoin transactions but also paves the way for several other use cases.
Let’s explore more about Bitcoin and Blockchain in-depth. Read on to know further.
Blockchain and Bitcoin
People often use Bitcoin and Blockchain interchangeably, but the fact is that Bitcoin transactions are aided by Blockchain, a distributed ledger technology. So, let’s understand a bit deeper about Blockchain and its key feature that makes Bitcoin so unique.
Key features of Blockchain:
Decentralization
One of the key features of Blockchain is decentralization; when we say decentralization, it means that the information is distributed across the network and can be easily accessed by the people in the network.
Peer-to-peer interaction
As we all know, Bitcoin is aided by peer-to-peer interaction, where there is no need to depend on a third party for approval and validation. Thus, Bitcoin transactions are known to be safer and faster at the same time. It will eventually make the Bitcoin transaction more profitable if incorporated into the business transactions.
Cost-effective option
The primary reason that makes Blockchain-based transactions so popular is that there is no processing fee involved. Since the transactions don’t need third-party validation and approval, it becomes a cost-effective option for businesses especially dealing with cross-border transactions.
Provenance
Whenever a transaction is initiated on the Blockchain platform, it is time-stamped and encrypted cryptographically. Thus, tracking and tracing it becomes easier. Thus, if anyone wants to trace the transactions, then it can be done easily. Now, when you do a transaction, that particular record of the transaction is added to the ledger. As a result, it is time-stamped, making tracing easier.
These are some of the key features of Blockchain-based transactions that enhance their usefulness across the different industrial segments. Bitcoin trading has also picked up the pace by growing in different areas of investment.
One of the main reasons for the rising popularity of Bitcoin trading is that the investors are guaranteed an expected return of profits. A decade back, when we first got to know about cryptocurrency, nobody knew that the value of Bitcoin would rise exponentially. However, the current market value of Bitcoin is approximately at USD 48,430.30. Though the price has been fluctuating, what’s certain is that Bitcoin has a strong value proposition and is a great digital asset for crypto investors.
Important Considerations Before Investing In Cryptocurrency
- Choose the right cryptocurrency
When planning to invest in cryptocurrency, you must check multiple options to invest in the best one. Explore the crypto market and how it is performing. For example, bitcoin trading bots let you keep a tab on the progress Bitcoin is making. This factor should be considered important.
- Crypto exchange platform
The next important factor that you must consider is choosing the right platform. You must decide which platform will provide you with the right and safe trading. Also, it must accept all the popular payment modes like PayPal, etc. The next step for you would be to check if the platform asks you to complete KYC at the time of account registration.
- Do your research
You must never ignore the fact that cryptocurrency investment is very lucrative, and hence, you will be attracted by the returns it promises. However, the matter is that you must not straightway jump into the pool. Instead, you should do your own research so that you can end up investing in the right cryptocurrency.
Bitcoin decentralized network: concluding thoughts
So, this was all about what you needed to know about Bitcoin. If you are looking to make an investment that can guarantee a good return and a safe future, you may give Bitcoin a try, keeping in mind certain important factors.
