Grant Thornton Indonesia's Update

Bitcoin and Blockchain: Disaster or Blessed Technology?

Virtual money which are being trend, bitcoin, are in a big negative issue. It rates has been falling-down up to 30 percent of the highest level, in early September.

The cause is a ban by China government. Obviously, it is a big punch because formerly, in China, cryptocurrency transactions using bitcoin was booming in the last few years. So, what this creature named Bitcoin exactly is?

Bitcoin started with a code programming created by Satoshi Nakamoto, on 3 january 2009. The system created only 50 bitcoin that known as “Genesis block”.

Bitcoin doesn’t look like a coin, paper, silver, or gold. This kind of money does not look in real form because it just digital currency. Mean, bitcoin is denominated the fully controlled by software.

Initially, bitcoin is popular among cryptographer who was doing encryption research (cryptography). No wonder, cryptography is becoming the foundation of bitcoin existence. Time flies, this currency becomes attracted to do a transaction. Its popularity was higher and higher. The exchange rate of bitcoin also increased.

First launched, a bitcoin only worth less than USD1. In mid-December 2013, one bitcoin was in the range of USD710.

Recognizing Blockchain Trend

Technology development no longer has limits. Every industry, including financial has developed many kinds of latest technologies, known as fintech. Nowadays, one of the famous fintech is Blockchain. This technology is so close to cryptography money.

Blockchain is an interesting concept to be explored. This is the main concept of which are decentralized including transactions, and being programmed to work through data called block. This technology uses a very secure system and is very important to manage financial data and digital currency development such as bitcoin.

It is safe cause by using Blockchain, users can get their transactions validated by adding block. Blockchain system can read a lot of data and very transparent. The Identity of people who work in the system can be secured if as well.

Blockchain digital certificates allow only certain people who have access to the data. Certificates were not easy to get, and can be used as a substitute for the name. So, it’s very difficult to be misused.

If the government records list of every citizen identity using Blockchain technology. Although data storage is likely not centered, Blockchain is giving a high secure guarantee because none can change it. The identity of 250 million people is saved in a private blockchain, and the data can only be seen by the government.

The population data includes id, full name, status, profile, one-minute profile video, address, email, Phone, sound recording, fingerprints, marital status, and blood type. Photos, video, sound recording, fingerprints, or email will be used as authorization and authentication code for each person.

Blockchain technology could be a solution in Indonesia that prohibits the use of bitcoin. Bitcoin users can be subject to criminal law. Rupiah is the only currency allowed in Indonesia, moreover, Bitcoin is also considered to be susceptible misused.

Lack of control, absolutely, can make Bitcoin to be misused. But is it possible for Indonesian government uses Blockchain instead of applying Bitcoin ban?