CRYPTOCURRENCIES
Bitcoins
Source - fortune.com
C
ryptocurrencies are a modern form of digital money,
which is also called virtual currencies, or tokens. They
don’t have any physical form, but only a digital
form. Even though they are represented as a digital
currency, they are complex than the digital form of
money present in Paypal, Google Wallet etc.. These are not
controlled by governments but by their respective network
servers. Cryptocurrency uses cryptographic protocols and com-
plex codes to encrypt data transfers to secure their exchanges.
Developers build these protocols using advanced mathematics,
Current payment system require third-party intermediaries
that often change high processing fees
Current system vs Bitcoin system
Source - deloitte.com
34
University of Peradeniya Gauge Magazine
which makes it impossible to break and dupli-
cate currencies. These protocols also mask the
identities of cryptocurrency users.
But machine-to-machine paymet the Bitcoin pro-
tocol could allow for direct payment between
induviduals, as wel as support micropayments.