Four Things You Need to Know about Blockchain

The term 'crypto currency' sounds like a word derived from the latest James Bond film. But Bitcoin digital currency-the largest and most popular in the world-not a mere fantasy. If anything, technology is moving behind Bitcoin can change the way government works.

Bitcoin has given rise to a unique method to record all financial transactions that take place without the need to rely on the existing banking system. The technology is known as the 'Blockchain'. No matter how successful digital currency, the technology that moves that's very important. One of the world's minister even declared that Blockchain may make the central bank is regarded as something outdated or no longer needed.

GovInsider writes a brief description that mentions four important things about Blockchain be known by government officials.

1. What is Blockchain?
   Bank records all financial transactions which they do in a 'big book' (or ' ledger' ). Decades ago, this great book may take the form of hundreds of old dusty books. Each new sentence that appears in the ledger is a record of recent transactions. The notes have now been digitized, but the ledger is still owned and controlled by a bank.

Blockchain was unique because of the ledger is not managed by a single organization or a particular party. Instead, this big book records publicly disseminated and maintained by thousands of computers in the world at the same time.

Great books that can be accessed and managed by the public is the main force Blockchain. Every computer that contained in the network can create a new record of recent transactions, clearly Oscar Darmawan, President Director of Indonesian Bitcoin. When the transaction has been recorded in the general ledger this global, it is impossible for anyone to remove the transaction record.

1. Why is this important?
   Blockchain makes payment transactions can occur and recorded without the use of a large book that is managed by a bank. Initially, it is important for the Bitcoin (the first currency in circulation using these technologies), but now the big book technology began to be used and applied to anything.

As written by a venture capitalist famous named Marc Andreessen: "For the first time, Blockchain provides the opportunity for an Internet user to send a unique digital property to other Internet users. Transactions can be secured, and everyone can know that a transaction has taken place and no one can be against that fact. "

Oscar Darmawan even noted her wedding day in the big book Blockchain by entering illegitimate promise into many transactions that occur in these technologies, to show that they promise will be forever recorded in a digital ledger that can not be changed by anyone.

1. How Blockchain can have an impact on the government?
   If a government uses Blockchain to record all kinds of agreements or transactions, would be impossible for a person to commit acts of corruption, said Oscar Darmawan. No computer one was able to change a transaction that has been recorded in Blockchain, so "smart contracts" that use this technology can pinpoint and details of where their money flows which would be a form of accountability that is so much better than they are now, A company will not be able to falsify accounts. All remittance transactions from government agencies will be recorded.

The system can also affect the central banking system that exists today, said a minister of the British government. Speaking to Wired Magazine, Minister Matthew Hancock said that "in a country where a currency requires the central bank to regulate the circulation in order to manage the country's economy, the central bank is definitely required ... But most importantly, when people are able to pay each other by the currency which is not connected and fixated on the geographic location of a particular country, then the need for the central bank also must be reduced. "

1. What is happening in this regard?
   There are three sectors which is quite interesting to discuss. The first is the startup sector (new company). The Singapore government has great ideals to make his country as 'FinTech' (Financial Technology) in the Asian region. For example, IDA has provided sufficient capital to support the Toast-company that helps foreign workers to send money between countries using the application and EZLink train their card. All transactions are guaranteed to run safely because it is listed in the Blockchain.

The second sector is the government. Monetary Authority of Singapore has just finished building a laboratory that will memonitorisasi FinTech recent development of technologies working in the field of payment and considering their utility.

The third sector, and most obvious, is the banking institutions themselves. Many of those who already have their own laboratories, and many are already investing in new startups are increasingly popping up in FinTech.

Blockchain is a new technology, so that the true potential possessed these new technologies will emerge over time. When the Internet was first invented, who can predict that the impact to the global world will be this big? Most development is aided by the lack of international support for the World Wide Web.

The debate about how governments can use and adapt to this new payment system was started. To date, there is no government that appears to regulate blockchain or Bitcoin, although there have been several countries that prohibit the digital currency to circulate in their countries. But with just one click Blockchain can change how governments do business with itself or with other parties. Try to beat it, James Bond.