A Review Paper on Regulating Bitcoin Currencies
Urshila Ravindran · International Journal for Research in Applied Science and Engineering Technology · 2018
Before the advent of Bitcoin, there was no mechanism to allow any two willing parties to make transactions between them without any involvement of a third party.Third parties were included in the process to prevent fraud.Hence, involving a third party meant extra charges for transaction which is a downside of the present online transaction system.Double-spending is an issue of digital currencies because digital tokens can be replicated easily and the transaction parties cannot verify the bona fides of the digital currency.Bitcoin has a procedure to prevent double-counting and check the authenticity of each transaction.Bitcoin cryptocurrency is based on the concept of cryptography, blockchain and peer-to-peer version of electronic cash.The Bitcoin network is growing significantly as there are no prerequisites required for making an account or investment in Bitcoin so it is basically a network open for all.Bitcoin is the first decentralized digital currency which is the reason for its popularity.This cryptocurrency opens up a whole new platform for financial transactions.