Can you imagine world without bank?

By ajay at May 4, 2011 | 11:01 am | Print

Can you imagine world without bank?

Can you imagine world without bank or(any) money managment institutions?World where no money institution or bank would keep an eye on your transaction.Well,here is a new site(Bitcoin) that aims for such a thing(world without bank).

How?

Bitcoin is developing their site on this concept of peer-to-peer transactions.In this system,there would be no central authority to draw(any) new money policy or for tracking transactions. These tasks will be managed (collectively) by the(site’s) network itself.

Bitcoin is the first digital currency that is completely distributed. The network is made up of users like yourself so no bank or payment processor is required between you and whoever you’re trading with. This decentralization is the basis for Bitcoin’s security and freedom.

Bitcoin:

Bitcoin is a system of owning and voluntarily transferring amounts of so-called bitcoins, in a manner similar to an on-line banking interface, but anonymously and without any help of a central authority. These bitcoins are valuable because they require the spending of real resources (CPU time and electricity) to produce, cannot be spent more than once, and cannot be removed from a person’s ownership without illicit access to his/her computer.

What Is Bitcoin?

Bitcoins are the unit of currency of the Bitcoin system. It is just a number associated with a Bitcoin Address.

Use It From Anyplace In World:

Bitcoins can be accessed from anywhere in world.All you need is an internet connection. Anybody can start mining, buying, selling or accepting Bitcoins regardless of their location.If you have Bitcoins, you can send them to anyone else with a Bitcoin address. There are no limits, no special rules to follow or forms to fill out.

How To Use It:

When a customer wants to buy something issue them with a bitcoin address.You can do this by clicking “New..” next to your address in the bitcoin client and sending that address to the customer.When payment comes in from that address send the goods to your customer. Depending on your risk tolerance and the value of the purchase, you may wish to wait until the payment shows enough confirmations to protect against double spending.

To issue a refund, obtain from the customer the bitcoin address where the refund payment should be sent. The refund address will likely be different from the address used when the customer sent payment, especially if an EWallet was used by the customer.

Best Part Is:

Bitcoin “accounts” do not have people’s names on them and do not have to correspond to individuals. Each balance is simply associated with a randomly generated public-private key pair and the money “belongs” to whoever has the private key and can sign transactions with it. The transactions that are signed using those keys also don’t have to include names.

A Bitcoin address mathematically corresponds to a public key and looks like this:
15VjRaDX9zpbA8LVnbrCAFzrVzN7ixHNsC

Each person can have many such addresses, each with its own balance, and this can make it more difficult to identify which person owns what amount.

Visionwiz’s Views:

Idea is quite promising.But, will they survive?We have seen many peer-to-peer lending and sharing sites in the past.Few of them have done well.Let’s see how this new platform perform.We feel,it should done well.

More at:http://www.bitcoin.org/

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