Skip to main content

4 Advantages of Blockchain Technology in the Cryptocurrency Domain

By September 25, 2020March 9th, 20244 minute read

Blockchain in its entirety is a database. And the key word that defines this database is ‘decentralized’. Akin to a record of transactions maintained by a bank, blockchain also is a ledger but distributed. Like BitTorrent, the peer-to-peer internet-based file-sharing protocol.

This decentralization is blockchain’s greatest advantage and the very essence of the financial system spawned by the advent of cryptocurrencies.

Apart from the distributed nature of blockchain, there are a few more advantages. Advantages that make it an appropriate foundation for digital asset based economic and application models to thrive.

Security

Blockchain-based database systems or digital ledgers are a lot more secure than other record keeping systems. Why? Because each new transaction is encrypted via cryptographic hash functions and linked to the previous transaction.

Blockchain consists of ‘blocks’ of information/transaction data linked to each other in a ‘chain’. And hashes are a complex string of mathematical numbers, insanely difficult to alter after a hash function computation.

This imparts near full-proof security from network takeover attacks and double-spending.

Get WazirX News First

As a matter of fact, cryptocurrency transactions in proof-work based blockchain systems happen successfully only upon successful calculation of these hash functions. That’s why it is quite difficult to break digital asset systems like Bitcoin.

Trustlessness

Conventional systems and protocols function on an intermediary/middleman based model. Financial transactions between two parties can happen only with the ‘permission’ of ‘trust-inducing’ institutions like banks, credit cards, and payment processing companies.

Blockchain technology negates the requirement for trust and permission and replaces them with verification. This is possible because of well-established mathematical and computation concepts that impress on the need to verify the authenticity of transactions.

This also makes blockchain technology fairly economic and sustainable by reducing the overall costs and expenditures of maintaining intermediaries and third parties.

Transparency

One of blockchain technology’s most crucial advantages (for cryptocurrencies) is that the ledger of transactions is public and open for the world to see.

Committing fraud on a blockchain-based cryptocurrency system is therefore a pretty difficult proposition. This transparency adds an unprecedented layer of accountability for transacting individuals and forces them to be the best possible version of their honest selves, at least while they are interacting on the blockchain.

Distributed

Usually, nodes/network participants store the entire copy of the blockchain ledger on their computers. This highly distributed nature of blockchains make them are highly resistant to malicious attacks

Technically speaking, each network node replicates and stores a copy of the public database and, because of this, thereby eliminating single/centralized points of failure.

This means that even if a single node goes offline, the network will not be affected. The ledger will reian operational and resilient to redundancies.

This is a huge leg up over many conventional databases that rely on a single set of data servers, which in turn attract vulnerability due to technical failures through aggressive cyber attacks.

Considering the fact that cryptocurrencies exist on these powerful blockchain technology-based systems, it makes sense to buy some of them.

How and Where to Buy the Cryptocurrency of your choice?

WazirX offers a smooth and seamless way to buy cryptocurrencies and plenty of cryptocurrency options to choose from.

First, you need to set up your account. For that, you will need to provide a valid ID proof for a mandatory KYC process and your bank account details.

It takes a few hours to verify the information shared from your end, after which you are all set.

You can go ahead and directly buy the cryptocurrency of your choice, using the funds from your bank account.

Why You Should Buy Cryptocurrencies from WazirX?

Acquired by Binance

In November 2019, Binance, the world’s largest cryptocurrency exchange acquired WazirX.

This has made WazirX an international cryptocurrency market player which means that Bitcoin and crypto traders and investors from across the world will be able to use WazirX’s digital asset platform.

Optimum Security

WazirX is India’s most secure exchange. We’re investing in regular security audits to ensure a highly secured trading platform for India.

Blazing Transactions

WazirX’s system can handle ‘millions’ of fiat-to-crypto, crypto-to-fiat and crypto-crypto transactions.

Our infrastructure is capable enough to scale up in a few seconds to match surging demand.

Functional and User-Friendly Design

Cryptocurrency trading on the WazirX platform is a super-fast experience. The creators have already built technologies that are used by millions globally.

That experience has helped made WazirX a feature-rich but efficient crypto exchange.

Built by Blockchain Believers

WazirX is powered by a team of hardcore traders & passionate blockchain believers.

We understand exactly what your crypto needs are. Powerful graphs, mobile apps, etc are integrated features of WazirX right from the start.

Now Available Across 5 Platforms

WazirX offers a seamless and powerful crypto trading experience across all platforms – Web, AndroidiOSWindows, and Mac apps.

Opportunity to Own WazirX Token (WRX)

WazirX token or WRX is WazirX’s native cryptocurrency token. By owning WRX you can earn rewards (in WRX) by executing crypto trades.

Also, in the future, WRX will prove useful in availing trading fee discounts, paying for margin fees, and more.

An Amazing Referral Program

With WazirX’s referral rewards program, you can earn as much as you want. You can refer your friends and earn a 50% rewards on every trade they make. All rewards are credited within 24 hours.

Now you how to buy crypto assets, but just buying them is not enough. You must also know what’s their future in India and across the world.

Frequently Asked Questions

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

Is Cryptocurrency Legal In India?

In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India

Can I Invest In Cryptocurrency?

Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.

Are Cryptocurrencies A Good Investment?

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.

Is Bitcoin And Cryptocurrency The Same Thing?

Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

Is Ethereum Safe To Invest?

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

How Cryptocurrency Works?

Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
Participate in the Indian Crypto Movement. Share:
Avatar

Leave a Reply

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.