How do Blockchains prevent double-spending of Bitcoins?

Ursprünglich erschienen auf: https://thebitcoinnews.com/how-do-blockchains-prevent-double-spending-of-bitcoins/

Bitcoins tower the cryptocurrency community, and it has grown famous for a few years now. Many people use digital currency and a lot of business firms too. The convenience here is their availability as digitized money. It makes it easy for the world, which is fast racing towards digitalization every day.

‘You might wonder that one of the main reasons for the popularity of bitcoins is safety and security. Yes, bitcoins have high security, but still, frauds do happen. Blockchains prevent such scams to a considerable extent. Sometimes the hackers or attacks succeed, but mostly blockchains help spot them at the earlier stages. Read further to know how blockchains allow one such fraudulent activity. You can even use Bitcoincompass.io for better bitcoin investment.

Bitcoins and Blockchains:

Today, most of us have a general idea of bitcoins, but technical understanding can help you better when you want to use and get involved with earning and spending bitcoins. These were some of the first cryptocurrency. Cryptocurrency is technically digital currency as it exists online and does not have any notes or coins. They only come as software and do not have any physical form. It doesn’t intrude with the fact that you can earn and spend them like regular currency. The organizations and sectors that accept cryptocurrency are growing daily. You can expect a phenomenal surge in this field very soon.

You can assume bitcoins basically as computer files. They function like computer files, but you can use them for your transactions. You require a digital wallet to store them as it serves as your savings account, and all the bitcoins you earn go into the wallet. When you buy something with bitcoins or lend bitcoins to friends, the transaction happens from your wallet. In simple words, it acts as your bank account. Only you don’t have a manager or bank fees to attend on.

Bitcoins got introduced in 2008, i.e., some anonymous people came up with a proposal for online currency. In 2009 however, a talented person or group called Satoshi Nakamoto brought light bitcoins and blockchain technology. They originally programmed the money and the database and released it on a website called bitcoin.org, also his/their own. People began using it in 2010, and it started getting valued for dollars and other offline currency.

After a year of bitcoins coming into the market, Nakamoto disappeared from the community. Nakamoto left Gavin Anderson in charge of bitcoins, and we haven’t heard from the founder since. In 2009 a cypherpunk received the first bitcoins in the same month of its launch. But no one made any transactions or used bitcoins. In 2010, however, a programmer used bitcoins for the first time to buy pizzas.

Since then, bitcoins’ value had surged and plunged till date, when its value has increased to a record-breaking run and its value increasing, people began trusting in bitcoins for investment. More people saw it as an investment option, and others found its innovative technology. They made more changes to bitcoins, forming their cryptocurrency and contributing to the evolution of digital currency.

You will find fraudulent and hacking incidents very minimal in bitcoins, thus proving its security and safety. The main reason for an outcome is the presence of blockchains. Blockchains work as a database for bitcoin transactions. They store data about bitcoins and make it available online. Read further to know the working of blockchains in detail.

Working of Blockchains:

Blockchains function like a ledger for bitcoins. Blockchains store every single transaction that occurs with bitcoins. Any person who makes a bitcoin transaction from anywhere, the information gets updated in the blockchains. You can find blockchains available on the internet, and anyone can access them. It makes up for the heightened security general for bitcoins.

When every transaction gets recorded, fraudulent acts get exposed to while they occur or immediately afterward. The availability of blockchains online ensures transparency. Anyone viewing blockchains means people do not get deceived, as in the case of other currencies. You can find this highly useful when people invest in something. When they invest in places where they find blockchain programming involved, they feel confident.

They can view their investment actions and what the company uses their capital anytime they want. It helps entrepreneurs and businessmen/women gain the trust of their investors and improvise crowdfunding. The working of blockchains involves a lot of programming and security systems. But you will find the basic idea of how it stores data. Blockchains store data in the form of blocks. The blockchain holds its first data in the first block and continues saving until it fills the block. Once the block gets filled, it stores data in a second block. It then connects or rather chains the first block with the existing block. When it begins with the third block, it chains the first two blocks together.

It continues the process for a long time. This way of storage enables it to store a large amount of data and, at the same time, to keep it organized too. Anytime you need data, the organization model helps the blockchain to find the information for you with ease.

Today, blockchain technology has found usage in many sectors and mostly in software firms and companies. Many technicians develop blockchain technology for different purposes. It has also seen significant use in business funding.

How do you explain double-spending?

Double-spending always concerns cryptocurrency developers. Double-spending refers to the process where users find a way to use their currency more than once. They use it once and manage to retain the balance in their wallet, thus reusing it again. They do it by dissociating the spending record and the balance amount. They also despair of the distribution of the cryptocurrency as a whole!

Experts refer to this act as double-spending. As you can’t double-spend standard currency, the issue you will find is limited to the cryptocurrency community. As in the digital world, you can easily make copies of things this unethical act. In simple words, you can call it a duplication process that occurs with bitcoins.

Many casual buyers or users of bitcoins are not aware of this scam. But the currency has the integrity to prevent it from happening as it increases the chances of people losing confidence in it. If duplication occurs, people who work for the real bitcoin get deceived and unjust. But people who make use of the scam can benefit in the evilest ways.

Blockchains prevent this from happening in spectacular ways. Read further to know-how.

How do blockchains prevent double-spending?

When we discussed the working of blockchains, a specific attribute of blockchains came to light, the fact that anyone can find blockchains online. It means that when transaction information enters the blockchain, you can’t reverse it. Once made public, you can’t alter the data in anyways. Experts have seen the transaction, and any suspicious activity afterward will come to light.

Another blockchain attribute remains that it needs to confirm your transaction for anyone to consider the bitcoin and the transaction valid. This feature of blockchain functions as a prime advantage against double-spending. Let’s see how.

When a person tries to double-spend, he/she sends the same bitcoin to two different digital wallets. When this happens, the person expects two people to receive the bitcoin. But the blockchain approves only one of the transactions. It recognizes the first transaction as valid. Once it confirms the first transaction, the first person receives the bitcoin.

When the sender tries to go with a second transaction, the blockchain recognizes bitcoin already transacted to another wallet. Thus it no longer belongs to the sender, and hence he/she cannot make a transaction with it. So the second transaction becomes invalid. Despite numerous attempts, the blockchain won’t approve or confirm the transaction. Thus the second person doesn’t receive any bitcoin, let alone a duplicate one.

Suppose the person tries to make the two transactions at the same time again. Then the trade that got confirmed the first time gets included in the blockchain as valid. We bring another feature of blockchains into the light. Blockchains verify a valid transaction several times. The more times you get a transaction confirmed by the blockchain, the more accurate you can consider it.

Keeping this in mind, many merchants go for a minimum of six confirmations before accepting the transaction. When a person tries to simultaneously make two transactions, the transaction confirmed the first time gets valid again and again. The blockchain doesn’t prove the second transaction; however, the sender tries to validate many times.

Another feature of blockchains, proof of work prevents double-spending further. It makes the alteration of blockchains extremely difficult without getting caught. Additionally, it prevents the user from monopolizing the network’s computing power. How does it make it happen? You will find it quite simple. The machinery and control required for the monopolization require the colossal expense, and a user cannot do it otherwise. This way, blockchains prevent double-spending with bitcoins.

Blockchains prevent many such mishaps in the world of cryptocurrency and ensure safety and security. They work on tightly-knit programming and entities, and it has stopped a lot of such unethical acts from happening. Thus it accounts an excellent deal for the popularity of bitcoins.

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How Bitcoin helps an entrepreneur expand their venture: what do you gain in choosing the digital currency?

Ursprünglich erschienen auf: https://thebitcoinnews.com/how-bitcoin-helps-an-entrepreneur-expand-their-venture-what-do-you-gain-in-choosing-the-digital-currency/

Are you looking for the best option of sending and receiving money with minimal interference from intermediaries? If your answer is yes, then Bitcoin is the best choice for you. As an entrepreneur, you want hassle-free payment solutions that accelerate your operations, leading to a quick expansion of your venture. Sadly, standard payments are sluggish because all your transactions must get approval from third parties, like banks. Many entrepreneurs benefit from Bitcoin not only as a payment method but as an investment option as well. However, the advantages mentioned above are not the only perks of Bitcoin. For an in-depth exploration of Bitcoin draws for your venture, please keep reading.

What are the benefits of Bitcoin to entrepreneurs?

Entrepreneurs are always looking for innovative ways of running their businesses. Each solution that you choose should not only be cost-effective but add value to your clients as well. The standard payment solutions have multiple weaknesses that make them an undesirable choice for start-ups. For example, they charge high fees, are slow, and subject to chargebacks. Bitcoin’s came into being to overcome the above challenges. Digital currency has multiple perks that can assist you in expanding your business quickly. These include:

Allowing Fast Transactions

One of the downsides of standard payment systems is that they’re slow because they must pass through intermediaries. But Bitcoin saves you when you want your transactions to happen fast. And this is critical to start-ups that are in perpetual need of funds. The virtual currency’s system, known as the blockchain, enables peer-to-peer transactions that don’t require any third parties. This means that you can make a payment or receive the money within no time while using the platform, regardless of your geographical location. And this enables a business to run smoothly and fast because transactions happen fast. Bitcoin enables secured transactions in different ways, including:

  • Internet of money: Like the way the internet transformed the way people do things, Bitcoin has also emerged as a financial breakthrough that has changed the way people carry out transactions. With virtual currency, you can make all payments and financial settlements via the internet. Start-ups that use Bitcoin offer clients an alternative payment method via the internet, which is prompt and hassle-free. Transactions through Bitcoin are hassle-free and fast, enabling clients to buy products or services from you quickly.
  • Barrier breakthrough: Bitcoin uses a technology that enables transactions to occur instantly without passing through intermediaries. The barrier breakthrough allows entrepreneurs to get rid of complicated standard financial settlements on the net and enable worldwide access to money exchanges. Therefore, your start-up can access payments from clients located all over the world. This also allows your business to get clients around the globe, which enables it to expand fast.
  • Overcomes standard payments issues: traditionally, many cash settlements were done through credit/debit cards and other similar payment solutions. While these methods have served individuals and institutions for a long time, they pose multiple downsides that can hurt your business. Credit cards must be processed and approved by banks and other intermediaries. The verification procedure takes time, which slows down the rate of transactions. Bitcoin is unique from the banking rivals because it provides a market gateway instead of a transactional token. The decentralized system that Bitcoin operates on lets enterprises finish settlements and administer their finances without the barriers present in standard payments.
  • Enhanced transaction processing: traditional payment systems may slow down business activities because transactions take time to complete. On the other hand, Bitcoin overcomes this challenge by allowing fast processing of transactions, enabling clients to pay promptly for the products or services they buy. And this is critical to any start-up as it always gets ready finances that it uses to fund its operations. Also, payments through traditional systems may cost you an arm and a leg. But thanks to Bitcoin, you can spend a little amount when sending your money. Sometimes transactions through Bitcoin are free.

Bitcoin is more secure.

Transactions through Bitcoin are immutable. This means that once a buyer pays for the product or service, they won’t defraud you by hitting your business with chargebacks. Unlike credit cards, where chargebacks are a rampant menace, Bitcoin eliminates the challenge by not having a central authority to arbitrate such cases.

Besides being a cost to your business, chargebacks can injure your business’s reputation as they can be associated with fraudulent activities. Bitcoin offers a secure transaction option, which is irreversible, meaning that chargebacks are impossible. This is critical to your start-up because the money that comes to you doesn’t go back to the buyer. Also, the standing of your business will be intact all the time, which means more business.

Control of charges

Transactions charges can be massive, which makes you think of avoiding specific types of payment options. Bitcoin, on the other hand, enables you to choose a transaction charge that you can afford. The good news is that Bitcoin doesn’t charge any fees for receiving the coins. So besides cutting your transaction costs, Bitcoin improves your clients’ bottom line by offering affordable fee packages.

As a payment solution, clients don’t need a bank account to store their units, as they are stored online. And you don’t need credit/debit cards when using digital currency, which further reduces the cost of doing business. Remember, bank accounts have maintenance charges that you must bear. And currently, you don’t need to trade the virtual currency for cash because multiple enterprises are now accepting it.

International Expansion

The objective of any enterprise is to expand its client base, which translates to more profits. Fortunately, if you approve Bitcoin, you can add more clients from different parts of the world. Some clients prefer buying goods/services through Bitcoin as the virtual currency is fast, cheap, and secure. And this is excellent news for start-ups that require many clients while reducing transaction costs.

Plus, many clients may not have credit/debit cards but may want to buy products/services online. You can bring on board such customers by offering them an alternative that stands out from the traditional options.

Some clients have also chosen Bitcoin because they want to be among the early adopters of the payment solution. Such clients will be excited to discover that your business accepts the virtual currency and will buy from you.

Media Publicity

Bitcoin is a revolutionary and innovative mode of payment that surmounts multiple drawbacks of standard methods. Businesses that embrace it can attract media publicity that can help in marketing their ventures. Therefore, when you embrace Bitcoin, your business can gain more exposure, which translates to more client acquisition.

Bitcoin has a broad community consisting of miners, traders, and investors committed to making sure that the virtual currency succeeds. The organization supports businesses that embrace Bitcoin payment solutions via buying from them or referring such ventures to potential clients. Therefore, if you assume the virtual currency, your business’s marketing efforts will boost media publicity and support from the Bitcoin community.

Requires No PCI Compliant

Credit/debit cards come with strict standards and require too many safety verifications. And these processes attract fees that your start-up must bear if it approves them. While Bitcoin may charge a small fee for your virtual wallet and transaction requests, it doesn’t need any additional cost to process sensitive data.

Can help in raising capital

Are you struggling to raise money for your start-up? Bitcoin can help you. Virtual currencies have transformed the way early-stage ventures raise money. Strategies like initial coin offerings (ICO) have helped different start-ups worldwide raise capital promptly and affordably from multiple investors. Your start-up can also get a market valuation, which has been a challenge for early-stage businesses in the past. Bitcoin issues shares in the form of tokens that are marketable almost instantly, enhancing the liquidity of your early-stage company.

So if you’re struggling to raise capital, it would be wise to try ICOs offered by the Blockchain technology.

Superior Technologies

Currently, there are multiple technologies that can assist you in conducting various Bitcoin trading activities. So you don’t need to be physically present to perform various tasks if you’re a Bitcoin investor. Many entrepreneurs are choosing the Bitcoin system because of the app’s top-notch technology. So choosing the virtual currency offers you a chance to use these complex tools, which can help you succeed in your investment journey.

Transacting Value

Virtual currencies enable users to transact value without involving intermediaries. Transactions through blockchain technology are fast, affordable, and efficient. Many forward-looking start-ups will soon give a wide berth to opening bank accounts that are expensive and take time to establish.

Alternative investment option

Entrepreneurs are eager to embrace investment solutions that aren’t prone to inflationary pressures present in fiat currency. Although Bitcoin is a volatile investment vehicle, its returns are enormous. Bitcoin can be the best solution if you’re figuring out how to diversify your investments.

Final Thoughts

Bitcoin comes with multiple draws for early-stage businesses. Besides offering an efficient payment solution, Bitcoin has other perks, like getting more publicity, joining a community of entrepreneurs with mind boggling ideas, and others. Any start-up can’t ignore the opportunities that Bitcoin presents.

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DocFlow by PixelPlex – Blockchain-Powered Solution for Secure Document Management

Ursprünglich erschienen auf: https://thebitcoinnews.com/docflow-by-pixelplex-blockchain-powered-solution-for-secure-document-management/

PixelPlex has been working on custom blockchain solutions since 2013 and has already implemented over 50 blockchain projects. The company is committed to building reliable and highly secure applications, and this time PixelPlex developers have created DocFlow, a robust business document management system that helps solve the problems associated with electronic file circulation. This promising solution offers great opportunities for enterprise development.

Document management challenges

When working with regular document management systems, most enterprises face several common problems:

  • There are certain risks associated with third-party online document management services;
  • Using conventional DMS or traditional document processing methods is time-consuming;
  • Data security and internal workflows are often compromised;
  • Confidential documents may be at risk during processing or approval.

Blockchain does an excellent job of addressing these issues as this technology always involves encryption, hashing, and decentralization of the network. These features greatly contribute to the system’s security, exclude intermediaries, and eliminate the risk of document damage and loss.

Over the years of developing blockchain solutions, PixelPlex was able to test all the features of this technology in practice. Hence, when the team began working on the new DMS, the choice in favor of blockchain was quite obvious.

DocFlow & its use cases

Generally, DocFlow is a platform that provides the necessary tools to digitize the entire paperwork cycle and allows information to be recorded on the blockchain. However, the range of possibilities offered by the solution is much wider. Let’s look at a few of them.

  1. Digitization of powers of attorney.

One use case for this solution is to digitize powers of attorney and enable executives to manage powers in favor of representatives, who can then act on their behalf. This way, DocFlow can be used as a blockchain document notarization system.

  1. Multi-signature document flow management and automated decision making

In this case, DocFlow becomes a platform for companies’ executives, secretaries, and shareholders, where they can go through all the stages of approval or rejection of a resolution within one web application. In addition, the platform allows you to invite co-signers from other companies and vote together on important issues.

DocFlow benefits

Many benefits come from the fact that DocFlow is built on the blockchain. One of them, for instance, is the inability to change, alter, or delete information that has already been recorded in the system.

Why is it an advantage though?

Conventional document management systems provide their users with the ability to make changes or delete documents. While this seems to be quite convenient, documents can be easily falsified. The data can be changed for someone else’s purposes and it will be extremely difficult to find the one who did it.

Thus, thanks to DocFlow, enterprises will be sure that all information about their documents is correct and will remain in the system. If changes are made to the documents, then the docs will be digitized, loaded into the system, and information about the changes will be added to the blocks in chronological order. Any member of the network will be able to log in and track the required document since all blocks are timestamped and the document history is transparent.

Transparency, in its turn, increases trust between network participants. DocFlow provides decentralized data storage, which means there is no central authority to control the system. The solution also helps eliminate fraud with built-in proof of origin techniques.

The DocFlow blockchain protects data at all levels with multi-tier role-based and coded access and keeps company information safe from hacking using encryption and hashing.

Another important benefit is the acceleration of all workflows related to documents. DocFlow enables companies to automate the processing, issuance, and retrieval of documents, and to simplify the maintenance and regulation of the business network. The processes of reconciliation and agreement are significantly accelerated, too.

PixelPlex added that transaction verification speed has been increased by the Kafka consensus algorithm, and companies can save valuable resources with zero transaction fees.

DocFlow: helping various industries

PixelPlex noted that DocFlow can be useful in any industry that works with documents, but they also commented on how exactly the application can help some of them.

Logistics and supply chain management

Blockchain has established itself as a technology capable of transforming the way supply chains work. DocFlow is intended to confirm this statement as well. The process of delivering a product from the manufacturer to the end customer usually involves dozens of people along the way who may not even communicate with each other.

Today’s supply chains are extremely complex, so when a problem occurs, it is very difficult to determine at what stage the delivery company made a mistake. Finding and fixing the problem can take a long time, leading to delays in deliveries and possible product damage.

Here’s what DocFlow can do.

Using this PixelPlex blockchain for documents, companies can take control of the supply chain and track the origin and movement of a product on its way to the end customer.

The solution also provides automatic payment processing and stakeholder database support.

Participants in the supply chain can also register a reputation score. It will motivate workers to do their job better and more responsibly.

E-commerce and retail

While the first and most obvious use case for DocFlow is also related to supply chain management, the platform has a lot more to offer for e-commerce and retail.

It can be used, for example, to digitize product warranties. Stores no longer need to issue paper warranties, they only need to fill out an electronic form that will be stored in the buyer’s app as well.

The PixelPlex application also provides support for the P2P marketplace and enables businesses to work more efficiently with CRM documentation.

Healthcare

Supply chain management is also important here, as the quality of prescription drugs and equipment can affect people’s health. DocFlow helps clinics, hospitals, and other healthcare providers better control their supply chain and ensure that drugs and equipment are delivered in the right conditions.

DocFlow can also provide a secure storage facility for electronic health records (EHR). Healthcare providers will record information about medical examinations and the patient’s health status, and patients can view this data and share it with doctors in other institutions. This eliminates the need to visit multiple locations to obtain paper-based medical records.

Healthcare insurance execution and storage can also become much easier. Health insurance conditions can be built into smart contracts, so in this case, they will be executed automatically upon the occurrence of an insured event.

DocFlow can also be used in accounting, finance, insurance, energy, telecommunications, legal document management, real estate, engineering, and construction.

Thus, companies that decide to use DocFlow significantly speed up the processes of working with documents, exclude intermediaries from various procedures, thereby saving the company’s financial resources, and also provide 100% protection of their documents from loss, damage, and falsification.

Post source: DocFlow by PixelPlex – Blockchain-Powered Solution for Secure Document Management

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