Possibly the future of online banking and digital finance, Blockchain is shrouded in mystery and skepticism. What is Blockchain? According to CIO Journal article of the same name as the question, it is a “data structure that makes it possible to create a digital ledger of transactions and share it among a distributed network of computers” (Norton, p. 2). Unlike legal tender, Blockchain is dissimilar and arguably superior because it innovates the process by allowing companies to create, verify, and monitor transactions on a network instantly without a governing source (Norton, p. 1). Essentially, Blockchain allows peer-to-peer networking safeguarded by security networks imbedded in the system. Conversely, although Blockchain appears effective and efficient to benefit the modernization of financial information systems there is however, skepticism regarding the network, its challenges, and legitimacy of the enterprise. Blockchain is an ambitious venture because it is contingent on its “network of participants” (Norton, p. 5). …show more content…
For example, according to the article The Blockchain: Future of Business Finance by Dan Brandon, the system functions like a “triple-entry” version of bookkeeping. Whereas the standard double-entry accounting is a system made up of credits and debits, with verification through audits and the ledger. Conversely, the ‘triple-entry’ described by Brandon illustrates Blockchain the cohesion between “three entries that occur; the debits, the credits, and the cryptographic signature” (Brandon, p. 39). Therefore, Blockchain provides a more efficient and immediate process in securing transactions. Essentially, the cryptographic signature serves as an immediate audit to a process that would usually require a third party to verify. As a result this would eliminate cost and labor redundancies (Brandon, p.
Even those who are cynical of Bitcoins future mentioned that Blockchain technology has a very bright future. Some suggest Blockchain technology as the second generation of the internet. Blockchain got the spotlight again in 2015 when companies like IBM, Intel, JPMorgan and Wells Fargo came together and announced about their intent to create their own version of open-source Blockchain. This collaboration is aiming to tweak features in the Blockchain concept in order to make it appropriate for their own
Bitcoin was first proposed by a person known only by the apparent pseudonym of "Satoshi Nakamoto" in 2008. It is an internet based digital currency along with its own payment network which uses strong cryptography to prevent users from illicitly duplicating money. Bitcoin is independent from the control of governments, corporations, or other centralized authorities. This feature tends to appeal to people to use bitcoins for trading. But, it does not enjoy the security and protection which these large bodies can provide, and hence, it becomes volatile and insecure means of trading. Bitcoin needs lots of computers to process and record transactions. This is done by Bitcoin Mining tools. Every time someone successfully "finishes" a transaction, they receive Bitcoins in return. This provides an incentive to keep the currency running.
Blockchain has taken all the attention of the tech world and has turned out to be progressively more predominant amid the most recent couple of months. However, what is it, and for what reasons does it make a difference? Digitalization changes the way individuals collaborate. These new connections require new advances: these days, transparency and cybersecurity have turned out to be fundamentals for accomplishment in development. Blockchain, thus, satisfies this requirement for transparency and security.
The documentary Banking on Bitcoin from director Chris Cannucciari was a documentary released in 2016. Throughout this documentary Cannucciari asserts that the cryptocurrency Bitcoin is the future. Using Bitcoin experts and enthusiasts, this documentary is working to persuade people that Bitcoins peer to peer non-centralized system is the future and should be used over traditional banking methods. The targeted audience for this documentary is businesses, government officials, and anyone interested in the Bitcoin technology. The tone of this documentary is ardent while also informative.
It is important to note, that while Bitcoin can be very difficult to understand, most people don't fully understand most of today’s technologies that influence their everyday lives, such as telephones, cell phones, the internet, and computers. Why is a Decentralized Payment System a Big Deal? " Regulation of money supply needs to be depoliticized. especially as it applies to virtual currencies" - Al Gore While Bitcoin is a currency, it is really better to understand it as a public ledger. This ledger, which is viewable by anyone, records every transaction within the network, and verifies the transaction from every computer on the network.
One of the largest parts of commerce is transaction. Transactions are needed anytime two parties exchange money or information. Since the Information Age has begun, transactions are more common over the Internet, where it is more imperative that transactions are secure (Klein x). Corporations have also become more widespread, which means that cryptography is needed to secu...
Every transaction gets entered twice in financial records. If one day you sold three gold coins ' worth of pepper, you would write that the amount of cash you had went up by three gold coins. You would also write in that the amount of pepper you had went down by three gold coins ' worth. Before double-entry, people just kept diaries and counted their money at the end of the day. This innovation allowed merchants to see every aspect of their business in neat little rows. (Kestenbaum,
For thousands of years cryptography and encryption have been used to secure communication. Military communication has been the leader of the use of cryptography and the advancements. From the start of the internet there has been a greater need for the use of cryptography. The computer had been invented in the late 1960s but there was not a widespread market for the use of computers really until the late 1980s, where the World Wide Web was invented in 1989. This new method of communication has called for a large need for information security. The internet allows people to communicate sensitive information, and if received into the wrong hands can cause many problems for that person.
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
Virtual Currencies are increasingly becoming a part of not only the virtual world but also the real world. There are many problems associated with virtual currencies. Due to its similar to paper currency, a lot of questions have risen regarding its acceptance among the people in the market. Virtual currencies are growing in popularity and although they were large used by speculators who were looking at it as a way to make money by buying them at a lower prices and selling them at higher prices (much like trading foreign exchange).
Social Networking is a modern and the easiest way to Communicate Online. It has revolutionized the way we communicate over large distances. We can get into contact immediately with Family, Friends, and other people from around the globe using any of the modern Communication mediums such as a Mobile Device or a Computer. There are many possible ways of Social Networking. You can use Social Networking Websites, Blogging, IMs (Instant Messengers), Chatrooms, and Dating Sites to get connected to people.
Cloud computing is a type of computing that depends on sharing computing resources rather than having local servers or personal device to handle applications.
...ng an acceptable form of transaction.Governments need to be more transparent to the public.A lot of ‘under table’ transaction take place in the most basic everyday services(passport,license, tax).Such services has the capability to go online reducing the red tape as money is only used via online transaction.
E-commerce application is a platform where there is buying and selling of products and services which are done by businesses and consumers via an electronic medium
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)