Bitcoin

How did Bitcoin become a currency for privacy?

Bitcoin is one of the most considerable crypto powers to be running at the moment. Since it is a digital economic system, ease and privacy are a few of its top priorities. Thus it works distinctly from any other orthodox banking networks.

How do Fiat financial networks work?

The traditional networks have their ways to start you up. Fiat currency takes away your right to privacy because it requires you to disclose certain sensitive information that must remain private for security. For example, it demands you of your banking data and your credit card data.

Not to mention the time, effort, and the much high cost, you would have to invest in fiat system currency.

What does Bitcoin do differently?

Unlike the fiat system, the non-governmental cryptocurrency gives you the leverage to stock funds by yourself. It is done without the involvement of any third party in between you and your money. Thus it keeps your said funds safe and painlessly accessible to you.

Additionally, to create a Bitcoin wallet, you do not require any extra effort. All there is to work with is a personal computer. By this, one can make multiple accounts in minutes.

Bitcoin’s take on the two most essential aspects- Identity and Privacy

Although privacy in government-chartered financial systems is said to be topmost. They also tend to keep your private information such as bank balance and transactions a hidden secret, which only they have access to, other than yourself.

However, Bitcoin is a system that breaks through this taboo, making the entire history of every account balance visible to everyone. It makes it transparent.

But how does it ensure security?

Even though all the visible transactions and addresses are noted in Bitcoin’s blockchain, none of these have attached IP addresses or names, nor are they publically linked. Thus, the possibility of finding who made a particular transaction is near to impossible.

The Transparent nature of Bitcoin

The Transparency phenomenon of Bitcoin is something that protects it from several mishaps and justifies its lucidity. However, it still may require some self-protection in case if you do not want to showcase your wealth out to the person you are transacting with.

What might be the possible solution to this issue would be to distribute your bank balance among several wallets. While doing so, it would also be advisable to use different addresses for every transaction you make.

Despite the transparency, Bitcoin one private cryptosystem that is safe and secures all on its own. Most importantly, it does not require you to reveal your personal information nor your identity to the world of cons out there.

 

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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