Anonymous Currencies and Decentralized Exchanges through Blockchain Technology

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Anonymous-Currencies-and-Decentralized-Exchanges-through-Blockchain-Technology

When people first heard about Bitcoin, they thought it was a used by people from the underground world who used it for their drug dealing and similar businesses. Because of it, Bitcoin was believed to be anonymous currency. But as the times passes by, it is seen that Bitcoin is not anonymous at all, it is pseudo-anonymous. It is like internet forums, where you get to be anonymous but once your identity is linked by means of a single post, all your post can be searched easily.

The fact is that Blockchain is transparent and every coins history is available for anyone to see. It’s like you get to see all the people who have used a bitcoin before you and your name is added to the list too. You can be careful to make sure the address of the Bitcoin is not linked to you, but it is difficult since the number of tools and business which are built to track the Blockchain analysis is increasing every day.

A Decentralized autonomous organization or a DAO, which is sometimes also called the, is referred to as an organization that runs through computer encoded rules called the smart contracts. The financial transaction record of a DAO and its relevant program rules are stored on a Blockchain.

decentralized exchange system was responsible for the creation of Internet, but today, a new technology THE BLOCKCHAIN has the potential for decentralized exchanges and communication. Decentralized exchange means that an exchange market which doesn’t use the services of a third party to hold the funds of the customer. But instead, the trade is strictly based one-on-one basis. The system is achieved by creating proxy tokens or through decentralized multi-signature systems. The main benefit of a decentralized exchange over the centralized exchange (used mostly in which a third party is involved to handle your trade), is the customer trust. Because there is no third party involved, the customer can be ensured that the exchange made is held in his own wallet. Another advantage is the privacy it provides. Which exempt the users from displaying their true identity. While there are many systems of decentralized exchange which are under construction, a fully functional decentralized exchange system is still under development. Blockchain decentralizes the method of storing the data and managing information, which leads to a reduced role of the middleman.

Blockchain allows for the creation of decentralized currencies, which are self-executing smart contracts along with the intelligent assets controlled over the Internet. Blockchain is also helpful in the development of brand new systems of governance which offer more democratic decision making, and the decentralized organizations that operate over a network of computers without the intervention of humans. Following these applications, many people believe that Blockchain is similar to the Internet with the prediction that the Blockchain technology will ultimately shift the power balance away from centralized authorities, mainly in the principal fields of communications, politics, law and business.

The technology of Blockchain has brought forward amazing tools like never before, and allow to achieve a degree of financial freedom. But, there are aspects and cons of cryptocurrency which forces to decide between the most valued features, such as the privacy, speed, efficiency and stability etc. But there are platforms available on the web which enable the user to have access to tools which will help them to achieve mass adaptation of cryptocurrencies.

There are, however, many merchants who are adversaries of the Bitcoin and cryptocurrency, and they give their argument on the basis of the volatile nature of the currencies. Because nobody would like seeing his money swept away due to a price crash, completely unpredictable. It orders to prevent this, platforms like Komodo offer fiat currencies as well, which are stable price assets and allow anyone to anonymously transfer national currencies on Blockchain. A decentralized exchange is also put for these currencies which Komodo has names Iguana.