Decentralized crypto currencies like Bitcoin have seen an explosion in their popularity. The current centralized banking system leaves much to be desired with regard to its security and reliability. The centralized nature of the current banking system leaves it prone to human errors and manipulation. A decentralized system is much harder to manipulate and also makes it easier to control the flow of money during crisis situations. It will be interesting to see how the crypto currency market develops in the future and how it will impact the business world.
The concept of crypto currency is based on blockchain technology. The idea behind this technology is to decentralize the way the world does transactions. The community of miners use their computing power to confirm transactions by solving complex mathematical problems in exchange for transaction fees. It provides an opportunity for people to send and receive currencies without the use of a centralized authority.
1. Transparent and Neutral System :
The decentralized blockchain database is maintained by a community of miners who compete to verify transactions and record them on the blockchain. The crypto currency system is completely anonymous and neutral. All its transactions are publicly visible through the block explorer. It also has a low operational cost which makes it cheaper to use. The system is also transparent and community driven which means that no one can manipulate it.
2. Decentralized System :
All the transactions are recorded on the blockchain and are accessible to all users. All the transactions are public and no one can manipulate it. The system is also open source and transparent which means that everyone can see what is going on in the system. Its decentralized nature makes it hard for any organization to control it, meaning that the system would always have a level playing field. It also provides a way for people to send money to each other in a secure and anonymous manner.
3. Decentralized Exchange :
It is also possible to exchange crypto currencies in a decentralized manner. The miners who confirm the transactions can do this through the block explorer. The block explorer provides information on all the transactions that have been done since it was launched. It also provides information on the current value of crypto capital gains tax. The whole exchange process is transparent and open to everyone who wants to participate in it. This makes it easy for people to trade crypto currencies with each other especially when they want to move large amounts of money around quickly, securely and anonymously.
4. Quick and Easy Transactions :
The transactions are fast and secure. All the transactions are done in mere minutes instead of days. The whole process is done by miners who compete to create blocks. The whole transaction takes less than a second once it has been confirmed on the blockchain. The speed at which transactions are done also means that there is less chance that one will be stuck behind longer than necessary. This is because the miners do not have to wait for long periods of time for a single transaction to be verified by the network of miners.
Binocs is a Portfolio Management and Crypto tax software which is designed to help individual investors build a well diversified portfolio of crypto assets quickly and easily. The platform enriches the user experience by providing information in real time about price fluctuations, volume movements and wealth changes. It makes it easy for the investor to keep track of his portfolio and perform complex trading operations.