What is blockchain?
Blockchain in simple words is distributed the database. Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta.
Blockchain, as its name says, consists of multiple blocks strung together. Four things must happen for a block to be added to the blockchain. Firstly, the transaction should happen. Secondly, the transaction should be verified. Thirdly, the transaction must be stored in a block. Last but not least, the block must be given a hash. Hash is a unique, identifying code. Once the transaction is completely done and verified it should be given hash.
With the launch of Bitcoin in January 2009, that blockchain had its first real-world application.
Advantages of Bitcoin
International and some business transfers can take from a few days to weeks, whereas bitcoin wallet transactions are generally confirmed with an hour.
No documents needed
It doesn’t require any ID card or address proof that all banks ask for opening an account. As soon as it’s done and verified you are eligible to send and receive bitcoins.
Low Transaction Fee
Bitcoin transactions have no government involvement; the costs of transactions are very low.
The sales taxes are not added to any purchases done using bitcoins. It saves money and is beneficial financially.
Bitcoins can be paid anywhere anytime by accessing the internet. It saves a lot of time as purchasers never have to travel to a bank or a store.
Disadvantages of Bitcoin
No tangible existence
As bitcoins do not have a tangible existence, it cannot be used in physical stores. It would always have to be converted to other currencies.
Before investing and buying bitcoin one should be aware of all the pros and cons of cryptocurrency. It will lead to a safe investment.