In recent months, the world has witnessed the rapture of Bitcoin where it almost hit a constant $20,000 that was backed up by the fact that e-currencies proved to be safe. Many businesses have partnered up with e-currency firms.
One of the best examples is Long Island Iced Tea Corp’s, whose shares grew by 289% margin after it was rebranded to Long Blockchain Corp. Governments have also accepted the currency, with UAE announcing that 90% of its transactions will be blockchain driven by 2020.
How does Bitcoin work?
Digital currencies are saved across different nodes in thousands of blockchains (Bitcoin ledgers) distributed across the world. When a transaction is made, an extensive peer-to-peer network approves each Bitcoin from the different Bitcoin ledgers. It uses heavy-duty encryption made of two keys, a public and a private key, both of which must be used together to access funds. This is the main reason why it is still unhackable to date, and according to https://bitfortune.net, even major US agencies such as DARPA are starting to implement blockchain technology because of the superior security it provides.
Despite significantly increasing the cost effectiveness, irreversibility, efficiency, and transparency, the use of Bitcoin might end up causing irreversible damage.
Why is blockchain known as disruptive technology?
Blockchain is a secure, digitized and decentralized system, which does not need to use human resources to maintain the payroll system required for transactions in real time. With this advantage, most industries are evaluating the possibility of leveraging blockchain to their advantage.
Soon, the cost efficiency of blockchain is bound to disrupt intermediary industries which follow defined processes. This is because Bitcoin is likely to replace the intermediation businesses.
Some of the sectors that might be hit by the blockchain technology include financial services, aviation, media, healthcare, security, global logistics and shipping, transportation, music, land use, manufacturing industries, automotive and government.