Blockchain and Banks Regulation

**Block chain and banks Merits and demerits** If we define block chain in simple words, basically it is the online storage that keeps the real information of the transactions in real time. The block chain is independent and is called decentralised (meaning no one has control over the ledger transactions). It is easy to use and freedom for an individual at ground level. One person can send the money to the other person in any corner of the world in the form of crypto assets, which are known as peer-to-peer transactions. This makes it possible for people to make their own digital currencies with different names every week.

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Blockchain works in a different manner, and no one can manipulate the data.
The block chain ledger information is stored on a series of computers, and each computer has its own separate copy. No one is able to edit the information, so it is referred to as a "secure system." For example, if there are twenty computers, if anyone among them wants to change the information before doing that, they need to get permission from all the computers, and the change becomes permanent. Information is stored as hashes; the hashes are designed in particular series; if any hash has been disturbed, then it will no longer have its own position.

Decentralization means no one can control the block chain. It is not central, unlike the banking system. State banks all over the world are controlled either by a central bank or by web-designed software used by banking employees. Banking transactions are easily stored and accessible. It did allow an individual to transfer the money all over the world, unlike cryptographic assets.

Banks and their control

In simple words, the term "bank" is defined as the institution of finance that accepts deposits or funds from the public and then converts them into lending activities, thus providing loans at different interest rates to the public.

Since many decades, banks have been providing facilities and financial stability to the public as well as meeting the whole financial demand of the country; thereby, banking activities are central. The banking department provides different financial assistance in different ways. All the business assets were dependent on the banks and are making high profits.

Globally, there are 25.000 banks, and the industrial and commercial bank of China sits at the top position.

Let me explain the banking mana through special organs of human beings. For example, the heart is a special organ in the human body that pumps the blood among all the parts and thus provides life at the cellular level, just as is the case with the central bank, which supplies the money to all the banks all over the world. The central bank or federal reserve or fed. which means they have control of all the banks in the world.

Money control varies from a country's economic point of view. The central bank provides loans to the state banks all over the world, and the state banks in turn provide loans to their subbanks.

Money supply can be of two types: micro as well as macroeconomic trades. Microeconomics means money can be supplied in a simple way like car loans, home loans, and mortgages, while macroeconomics means money can be supplied for overall growth like GDP.

Be honest, I was doing my graduation in 2013 and completed it after one, which means 2014, at that time I was not aware of bitcoin but one of my friends from Bangladesh sent me the link about bitcoin wallet registration, but I could not understand the magic of bitcoin, that was my first and last mistake, and I lost the golden opportunity for bitcoin entry. Now a days, bitcoin is far from my wallet balance. Now a days, bitcoin adoption in every country is very common, and it has also been surveyed that there are 423 million crypto users throughout the world, with the Asian continent on top with 260 million users followed by North America with 54 million users.

Central banks have played a key role for decades and are considered the safest system of the financial revolution. Bitcoin is also the safest, but there is a demerit as well, which is the limited stock of supply. The other feature of bitcoin is very rare, but bitcoin can kill the banking system as soon as it is adopted, which is directly proportional to the crypto adoption.

Many countries in the world are eagerly waiting for cryptocurrency adoption and have seen the versatile nature of bitcoin. Most people wanted to store their money on the largest exchanges and wanted to trade their money.

As per my point of view, I am not a financial adviser, but my prediction is that block chain technology can surpass the banking system and take the top spot in 2030. Bitcoin is finding its way into the fields of medicine, health management verification, and videogames. Just like the Hive Crypto Blog provides food for thousands of users, it is the platform for those who have less speaking power than writing skills.

The digital currency regulation bill was introduced in the Lok Sabha in 2021. The aim of this bill is to create a secure network for cryptocurrency in India. Why does India want this regulation? It has many reasons; it was in 2010 when the hacker exploited and violated the bitcoin protocol and stole 184 billion bitcoins, later being discovered in a few hours with his plot and invalidating the said transactions. This was the first and last attack on bitcoin.

India is a vast country and has threats from neighbouring countries at its boundary lines. As per Indian law, bitcoin is used for terrorist activities, and the Indian Parliament banned the crypto currency in 2019. The ban was later lifted in 2021 by the Supreme Court of India.