Cryptic blockchain unconfirmed
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To continue reading this article, please exit incognito mode or log in. Visitors are allowed 3 free articles per month without a subscription , and private browsing prevents us from counting how many stories you've read. We hope you understand, and consider subscribing for unlimited online access. A distributed, digital currency could allow new forms of online and mobile commerce—and perhaps challenge established financial systems. Governments and established financial institutions are likely to launch a campaign to quash the decentralized digital currency Bitcoin, according to a leading economist and academic.
Mathematical and computer networking principles are used to underpin a system through which financial transactions can be made digitally, without the need for any central authority or financial institution. The code that supports and regulates the Bitcoin network is built into the software needed to use the currency. It works in a distributed network across the Internet to confirm transactions and prevent counterfeiting.
Adding to the mystique, the technical expert or experts who developed the Bitcoin protocol are still unknown. After several years as a nerdy curiosity, the currency has recently gained momentum as a legitimate means of payment.
He believes they will be egged on by established financial institutions, which will likely seek to quash the currency.
Bitcoin enables very rapid, cheap transfers and payments that could compete with existing fee-based ways of moving money around. Bitcoin opponents could get ammunition for their campaign from the recent case of Silk Road, an online marketplace where bitcoins were traded for illicit drugs. The site was hidden from the open Internet using the anonymous networking technology Tor. Johnson suggested that this kind of controversial association could certainly put pressure on Bitcoin.
Indeed, it appears that Bitcoin is coming under increased scrutiny from lawmakers and politicians. Stephen Pair, cofounder and CTO of the Bitcoin payments company Bitpay , says his company has been contacted by state and national officials who have subpoenaed information about its activities. Pair rejects any suggestion that the currency has any special association with illegal activities. He also said that some governments outside the U. Catch up with our coverage of the event.
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