Crypto currencies have been trending in the last decade finding a second wind and blooming in the years of 2016-17. However, in the last few months the value of cryptocurrencies has been going through a set of changes. The unpredictability combined with the simple fact that these currencies are essentially handed from one person to other digitally with no physical assets backing them -people have begun to question the reliability of the cryptocurrencies Itself.
This is where the new and novel Gold backed crypto currency comes into relevance. With actual gold backing the currency, the reliability of this new crypto currency skyrockets. Using the same Block chain technology used by other cryptocurrencies, this latest crypto currency Gold bits coin(GBC) is what you need to get your hands on.
What is Block chain?
A system of interconnected nodes, which are nothing but a network of computers that are managed on a peer-to-peer network, is the easiest way to define a block chain. This is one huge document in which all the transactions regarding the cryptocurrencies are entered and maintained. The very fact that multiple people are accessing it and once entered, making changes becomes near impossible. That is what makes this a highly secure network that lets you do transactions and be at peace with the safety of your currency. Since each person has access to the entire document and history of all transactions each system becomes a safety net that can identify a breach when it is being perpetuated. Tampering, altering, and falsification become a thing of the past because each transaction or block as we call it, is linked to the ones before it and the ones that come after it. The chronological order gives it another layer of security.
Why is it preferred?
Apart from the basic and obvious advantages like safety and providing an almost fool proof system, block chain is also enticing to its users because it removes the intermediaries. The use of cryptography and the way in which the transactions occur between user to user, block chains gives the people a level of trust that cannot be seen elsewhere. Along with this, sweetening the pot is the fact that each block is very much immune to forgery of any kind. Contrary to popular belief, block chain is not only used in transfers of cryptocurrency. They are used in various other platforms like online voting, payments for online artist and much more.
Public and private block chains.
Though they work in the same way, there are some key differences which can be guessed from the name. Anyone who wants to can be a part of a public block chain. The main example of a public block chain is Bitcoin and other digital money transactions. However, just like every situation flooded with multiple users, the public block chain takes a bit more time to process the transactions.
The participants of the private block chain are however, exclusively decided by a single person. The rules to be followed during each transaction are also decided on by this person. The reduction in the number of people involved directly translates as an increase in the speed.
Now that we have an idea on what block chain is, let’s take a look at five definitive reasons why the use of blockchain makes GBC a reliable platform for dealing with gold backed crypto currencies.
Open source technology of block chain lets its users modify it as they see fit. However, this does not apply to the data that has already been entered into the block chain as such. The use of the software, the rules people need to follow, and the regulations needed can be moulded and changed around as the users see fit. However, any change made becomes effective only from the transactions post the changes. Any data that precedes the change is immune to tampering. This thus becomes the best way to invest in gold through, Gold bits coin.
The cost of conducting exchanges via block chain is many times lesser than any other platform out there. This is mainly done because the middle man in conveniently removed from all transactions. The absence of a third party makes all transactions happen direct from user to user.
A 24/7 working time, no hampering by time-zones and the removal of protocols that weigh down other institutions, block chain works in much higher speeds than conventional methods of transactions.
The beauty of block chain is that it is not centralized at one single hub or server. This also makes it highly reliable. The rules that have been applied to a particular transaction are implemented by different individuals working in each node. Even if the information carried in blocks happens to fall into the wrong hands, this will only lead to the compromise in one particular segment. The majority of the data remains untouched. Not only that, but a perpetrator can do nothing with just one section of the data, as often the names of the users are also masked.
The removal of the third party has indeed done a great deal in establishing the reliability of block chain mechanism to be used in Gold backed Bits coin. This also means that the power of the transaction lies not with one single person who can decide what shots to call but distributed among the numerous users and developers who can equally ensure that no misuse happens. This also makes sure that under no circumstance will this process collapse as it is not dependent on one single thing, institution or person.
All these become the reason why block chain is such a reliable method to carry out your transaction of Gold backed crypto currency as the level of security is essentially doubled. Both in terms of process of transfer and the asset transfer,
All the block chain security and other traits that are spoken above makes gold backed coin currency one of the top crypto currencies to invest in.