Bitcoin creation and transfers of this electronic currency are based on a P2P network, so it has no central authority or government involvement. As per the https://the-newsspy.app website, the value of 1 Bitcoin at present is $736 US dollars.
Bitcoin technology is now being used in the Defence industry for many purposes. For example, to protect themselves against cyber-attacks, defence organizations are taking the help of bitcoin transactions that are more secure than most other money transfer methods available today.
- 1 7 Ways How Bitcoin Affects the Defence Industry
- 2 4 Negatives of Bitcoin that Affects the Defence Industry
- 3 Conclusion
7 Ways How Bitcoin Affects the Defence Industry
1. Bitcoin transactions are secure
Bitcoin is a decentralized system where money can be transferred from one account to another without any security breach or hacking. In the Defence industry, bitcoin transaction technology is being used for ensuring data protection and complete anonymity.
2. Security of data transfer in bitcoin technology
In this technique, every block contains the encrypted hash of the previous block. So to hack a transaction, you have to decrypt all the blocks one after another, which is practically impossible.
3. Bitcoin creates a chain of data packets
Bitcoin uses PKI or Public Key Infrastructure by creating a chain of data packets. Each packet contains the user’s and receiver’s public address, transfer amount, and other details. Unfortunately, this data is impossible to decrypt as it uses SHA-256 encryption.
4. No risk of data loss
All the Bitcoin network transactions are tracked using a public address that cannot be easily associated with any specific user’s identity. Furthermore, all addresses and transactions are kept anonymous using encrypted addresses.
5. Cost-effective solution for security issues
Using this bitcoin technology, a large amount of money can be saved. It is unnecessary to create new security systems and software every time a new way of hacking or data theft is discovered. If you have the latest version of the cyber-security system, your system will automatically become more potent as every transaction is added to the database.
6. Support of Bitcoin Technology
The US Defence industry Research and Development Corporation has already supported the development, investigation, and research on this cyber-security system to combat security threats in cyberspace for protecting information, data, programs, procedures, etc.
7. Acceptance by defence companies
The American defence industry also uses Bitcoin technology to secure their wireless networks. The US Defence Market has an estimated market capitalization of $591 Billion in 2015 and is expected to increase by 2020.
Bitcoin technology is famous for its security features which encourage the Defence industry, including governments, military organizations, and private companies, to use bitcoin transactions because hackers are finding new ways of data theft and security breaches in all networks.
4 Negatives of Bitcoin that Affects the Defence Industry
1. Weaknesses in the bitcoin network
Bitcoin is a decentralized peer-to-peer network, so it has no central authority or government involvement, which can be considered both advantage and disadvantage. However, this system has been attacked by hackers many times, so weaknesses of this system are being discovered from time to time.
2. Volatility of bitcoin
The value of bitcoins is not stable as it keeps changing now and then. For example, in 2015, The value of 1 Bitcoin was $300 US dollars, but after a few months, its value rose to $750,
which means that anyone who had bought this coin earlier was making a considerable profit. Therefore, only the price factor can be considered a disadvantage of bitcoin technology.
3. Bitcoin mining
Bitcoin is not mined like other coins. Instead, it is ‘mined’ by using a computer to solve complex mathematical problems, which takes a long time and money, so your transaction will take some time before being approved by the system.
4. Banking ban
If any Govt forbids any company from using bitcoin technology, then that company cannot use this technology. For example, India’s Central bank has banned its banks from using bitcoins for transactions.
Bitcoin technology is new and needs time to be accepted by the users for transferring money. Soon everyone will get used to this system like mobile banking. Many bitcoin wallets are available, making it easy for customers to keep track of their bitcoins used in shopping malls or stores.
For the defence industry, this system has potential benefits in terms of security and cost. It can become the standard technology for the protection of information and data.