The basic concept is that in every Crypto currency transaction, the entire network records history that runs, including the number of transactions and balances held. For example, someone has successfully completed a transaction and has been confirmed by the recipient. All networks connected to the string immediately know the information that contains an explanation that a number of transactions have occurred and have been digitally signed by giving the private key to the system.
Recipient confirmation is very important for digital currency transactions. The confirmed transaction is stored in a container called Blok. Records of transactions are permanent, cannot be edited, transferred, or falsified and are part of the blockchain. The permanent nature of making a cryptocurrency transaction cannot be changed aka cannot be canceled once it is sent.
Cryptocurrency in Indonesia
Bank Indonesia explicitly states that the ban on cryptocurrency for transactional activities is not recognized as a legitimate payment instrument. This declaration is based on a law which stipulates that payment instruments received in Indonesia only use Rupiah. The point is that crypto-currency virtual money is not considered illegal, it is only an illegal transaction.
So far, most Indonesians still use cryptocurrency as a property (investment) because the transaction is still very limited. Some traders accept cryptocurrency payments.
One of these restrictions is based on concerns about the potential for cryptocurrency related crimes. The Internet Development Institute (ID Institute) has revealed at least three things that might happen: private keys, ransomware, and physical threats to portfolio owners. The ID Institute provides an example: the vulnerability of the Blockchain system used by Bitcoin has great potential in terms of inserting malicious programs. Miners need important resources to manage blocks. These aspects can spread ransomware to the computers they control.
Various points of view were expressed by Juliandri Jenie, head of IBM Indonesia national agency. During the #SelasaStartup session, he stated that the nature of the Blockchain registry can be seen by others, but is safe at the same time because no one can change it. This is an advantage because it can make business-to-business integration more efficient. Everyone can trust each other because all data can be recorded correctly, can be seen by others even if special access is needed.
At present, several major Indonesian banks and agents are starting to explore the potential of Blockchain as a platform to increase productivity, even if it does not include cryptocurrency.
