Before discussing the cryptocurrency, let's take a brief look at the commonly used currency system in our daily lives:
Many years ago people have been trading things according to their needs. One of the oldest and most popular traditions in the transaction was exchange traditions. But there have been several problems in the trial of the criteria. Suppose, the fruit trader Shafiq will have a bunch of rice and he will have to pay one sack in return. But Shafiq did not have any money. Since Shafiq does not have any clue, then the exchange work can not be completed here.
To get rid of this problem of exchange system, everyone felt the necessity of inventing a custom, where all kinds of products would have an ideal value. Gold can be said for example. Many years ago, Gold was still considered a unit of wealth measurement. Earlier it was a direct gold transaction, it once became a bank currency system for human needs.
Thus, in different countries different coins like money, dollars, pounds, euro etc. came. According to the needs of the country's economy, the government or central bank can release these coins in the market for the use for the people. Bank or banking system has been created to manage matters related to financial transactions or asset sharing of individuals or organizations in accordance with the laws of the country. But this did not solve the problem. If you hear the horror stories of big banks in the history of the world, the cold stream flows in the heart! Yet time goes on, and people are not going to fall into the trap. They discovered their own needs and wondered after one another. Today we will talk about a surprise.
Before going to the main discussion we will try to imagine a mythical scenario.
You have a lot of hobbies from an early age. One of the hobbies is Art and Culture. That is, in this modernization civilization you have special interest in your rare paintings. Collecting from an early age. So you have a small museum with paintings collected in your own years. In the words of the 80s, there is a lot of value and it is worth giving. There are many problems in collecting these things and collecting them. Because there are many types of people who are aware of these, sometimes they have a large number of organized crime or accidents. Near the end of the university life or in the job, it is quite busy or no longer want to take pains as before, and do not want to leave the things of the hobby. So, for a while, with a way of thinking that all the art collections can be preserved in such a way that,
• First, confirm the product quality.
• Financial transactions and legal matters at home, sitting in trouble, in trouble, in silence and at short notice.
• A transparent transaction process when selling.
• The strict security of the products.
This means that if a thief runs a piece of art and sells it out, then he should be caught by the law enforcers for the sale of stolen goods and if the thief escapes, the person who bought it has been caught stealing and purchasing the goods.
Exchange traditions and you will not be able to fulfill your needs. But you can solve this problem if you want banking system. But its said that the history of the great bank robberies is a tragic history. On the other hand, you cannot afford the financial security and banks at the moment.
With the example of what we are talking about, explain the role of the bank with an example.
At present, we try to understand the importance of the bank here. Assuming, you will send money to a scandal trader in Egypt for any work related to your artwork. So you know or hear that almost the time they took refuge in many kinds of immoral paths. So you're not sure how to pay their money. If the businessman denies the money! So, in this case you will need a reliable institution where you can freely exchange money. That means your account's money will go to another person's account in Egypt by another organization, and the organization will keep a record of the transaction so that no one can question any two of these transactions. The middle of this company is the bank.
How would you have been able to give money to the Egyptian business in no way by the third party or bank? Here we are basically thinking of a process that will ensure a transaction through more transparency and accountability than a bank. Even the system will not have the possibility of Hankie or any kind of loot.
In fact, the name of this technology is the blockchain, which is now seen as the future banking technology of the world, and some of the dominant banks in some influential countries are already investing billions of dollars behind this technology. For the blockchain system and for that the first cryptocarrency Bitcoin is designed and developed by the name Satoshi Nakamoto The word 'who' is probably not right here, because the identity of seven satis is still unknown. It can be a person, group, establishment or company codename.
It was just so far Now sure, what is this blockchain again! In the next post we will discuss about the blockchain.