The Bank of England’s recent report on payment technology and electronic currencies considered the blockchain technology that permits digital currencies a real technological invention that could have far reaching consequences for the financial sector. The block series is an Online decentralized public ledger of all digital transactions that have happened. It is digital money equivalent of a high street bank’s ledger that records transactions between two parties. Just as our modern Banking system could not function without the capacity to record the trades of fiat money between people, so too could an electronic network not operate without the hope that comes in the ability to correctly record the exchange of electronic currency between parties.
It is decentralized in the feeling that, unlike a conventional bank that is the only holder of a digital master ledger of its account holder’s savings that the block series ledger is shared among all members of the community and is not subject to the terms and conditions of any particular financial institution or nation. You can purchase Bitcoin low and offer them high with the help of Bitcoin doubler. A decentralized Financial network ensures that, by sitting beyond the evermore connected present financial infrastructure you can mitigate the dangers of becoming a part of it when things go wrong. The 3 major dangers of a centralized financial system which were highlighted because of the 2008 financial crisis are credit, liquidity and operational collapse. In US alone since 2008 there have been 504 bank failures because of bankruptcy, there being 157 in 2010 alone.
Typically such a collapse does not endanger account holder’s savings as a result of federal/national financing and insurance for the first few hundred thousand dollars/pounds, the banks resources usually being consumed by another financial institution but the effect of the collapse can lead to short-term and uncertainty issues with obtaining funds. Since a decentralized system such as the Bitcoin system is not determined by a bank to facilitate the transfer of capital between two parties but instead depends upon its tens of thousands of consumers to authorize transactions it is more resilient to these failures, it using as many copies as there are members of their network to make sure transactions continue to be authorized in the event of a single member of the community collapsing.