We all read futuristic science fiction books and see many movies about the future of mankind. They always depict artificial intelligence and robots and time travel. But now a real futuristic concept has actually revolutionized the present financial world. It is almost as if a space-age currency has come back in time.
Do not be apprehensive
It is a concept that can be explained but yet people find it difficult to understand and use and many countries are yet to create a system that can accept this kind of currency. Due to lack of awareness and understanding, many countries with stronger currencies are clamping down on this futuristic technology as well. This is known as the blockchain technology. This system is the basic foundation of all the digital currencies so far. People in the software industry were the first to start creating this, using their super powerful computers. Now many online services are ready to accept these currencies as payment in lieu of services or goods.
What is the technology
The blockchain is a simple, sincere effort of some software professionals to create a record of every financial transaction that takes place. This creates an open document that can be seen by anyone and it is in public domain. It is complex and people may not access it due to unawareness but it is not a secret or hidden record. It can be understood easily if you visualize a document, that has many transactions recorded across the world. All the transactions are recorded and are always open to everyone. So this data keeps replicating in the records in everyone’s document.
Who governs this currency
It is completely decentralized. That means it is the internet community that keeps a record of this blockchain and money that transfers hands, but no one can control it. It is not minted like paper or metal currency. No government or authority actually controls the mining of information or these currencies. Blockchains can keep increasing in size as these are replicating on increasingly more computers but the number of coins was kept at a fixed number. There are many blockchain currencies launched by various groups but some of them failed to take off. Some are really doing well and well respected, like Bitcoin and Ethereum.
The value of these coins is dynamic and people hear of many rumors about these being banned in certain countries. The fact of the matter is that as the government authorities cannot understand how to control their use or mining, therefore they try to throttle their use in their countries. However, these currencies, at least some of them are readily acceptable and traded online. You can use them once you understand the concept and are comfortable with the anonymity connected with the same.