Wednesday, August 7, 2019

Bitcoin Payment Processor: Making Bitcoin Transactions Untracable

Bitcoin Payment Processor: Making Bitcoin Transactions Untracable

Money or currency is a way to exchange good and services, to store value and a unit of account. All these things simply mean that a currency can be used as payment of goods and services and to estimate the worth (value) of something. Money is necessary for one’s survival as it is used to buy essential commodities – food, cloths and shelter along with many other items for comfort, convenience, and recreation.
Alongside with physical money (the notes and coins) another type of currency – the digital currency, also exists. A digital currency, such as bitcoinapi, is a ‘currency unit’that can be used to perform the same functions as physical money, these includes ‘rewards points‘ offered by various businesses that can be used to buy an item at that business or other affiliated businesses. Sometimes the banks or several e-wallets offer the customer the convenience of paying someone digitally ( ie, the electronic transfer of funds), in such cases the money stored in the person’s account is treated as a digital currency.

What is bitcoin?
Bitcoin is a type of digital currency which is cryptographic in nature, meaning that any payment( made in bitcoins) made through bitcoin payment processorcannot be traced by anyone, not even the bitcoin trading sites. The fact that bitcoin is decentralized and uses peer to peer connection for transfers also makes it untraceable to anyone.

What does ‘decentralized’ and ‘peer to peer’ connection mean?
The amount of money a country has is regulated by its central bank. In order to regulate inflation and maintain some value of the currency, the central bank tightly regulates the supply of money within the country. In case of a deficit in the budget of the country, the bank prints new currency and then lends it to the banks and the government in lieu of gold or getting more money from the bank, the banks, in turn, give out loans to people and the government pays the people. Thus the bank acts as a central authority for currency hence the name ‘centralized system’.
click here to know more about  What Is Bitcoin API And Its Decentralisation

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