My Tech Topic Blockchain Technology: Inside of Bitcoin Using Internet of Things And Blockchain

Posted bydimasbhasPosted inUncategorized

Image result for bitcoin

I choose this interesting topic because of this topic related with the material that we want to discuss about. In other side, this is become my question why Indonesia block transaction using bitcoin that very interesting to talk about.

The list important in this topic is:

  • About bitcoin, the progress that make them popular
  • The technology that they use related with IOT and blockchain
  • The country that already legalize this technology

The development of technology brings two side effects between good things and bad things, this also happens due to cryptocurrency which brings efficiency but also carries the opportunity of crime. One of the most famous cryptocurrencies is bitcoin, “the price of bitcoin in January 2011 is US$0.3 and suddenly the price blows up into US$14000 in December 2017” (Sianipar, 2017). The rapid growth price of bitcoin makes them famous and everybody started to find out what is bitcoin, the popularity of bitcoin also brings many new investors that started to invest inside of bitcoin. According to supply and demand, “the high demand of bitcoin brings the price of bitcoin going to the highest price which is US$19349 in December 2017” (Setiawan, 2017). Because of that many investors, starting created the platform for people to do transactions one of the famous ones is Indodax that active since 2016, while the government started to learn what is bitcoin and try to understand. Behind all the success of bitcoin, they have a strong reason why bitcoin become something that very popular and the reason why they make everybody started to use bitcoin that will explain furthermore below.

           The technology that Bitcoin uses to maintain its product is the blockchain system, this technology interested because it is related to the uses of the internet of things. So, the uses of blockchain also make a question of how they work? This technology work with the process of the transaction with more efficiency rather than conventional because they don’t use centralized infrastructure. “Bitcoin and blockchain could find the solution of older cryptocurrency regarding the double-spending problem. Double spending problem refers to uses the digital money for spending the same currency twice and bitcoin could find the solution using blockchain with system distributed consensus” (Anggorojati, 2018). The blockchain technology inside of bitcoin executed with the cryptography method which read by using a scripting language, so every user in bitcoin could do a transaction in the real-time transaction. One example when someone buying bitcoin, the system will detect and record the blockchain system and will directly give validity. The concept of the system, the information the coin you already buy will spread into other and record that is now yours, it will make that coins can’t acquisition by others because already record to hole system using the internet. The whole process of transaction data begins by a given seal for the buyer of bitcoin that will bring into a saving folder if the buyer sells their bitcoin to another person the seal code will change. The file between the old seal and new seal could be said as data that become a block, the saving folder of the block is the blockchain. Another source said, “blockchain inside bitcoins also can prevent corruption or fraud because the data will directly spread and when the data write it become immutable, because of this system of course could reduce or prevent fraud or corruption” (Poerhadiyanto, 2016). So, the technology of bitcoin can’t develop as high as now without help from the internet of thing, the help of the internet makes bitcoin could doing the blockchain technology with efficiency in terms of money and time, provide transparency, and speed. The intervention of the internet help Bitcoin by the easier and everybody has access due to the internet. Makes the capability of blockchain could be implemented very well if the connection and access are hard to find it will be hard to develop the blockchain.

           The rapidly growing of the technology in bitcoin also bring some breakthrough within some big country that seeing big opportunity toward this financial technology. Three big countries that started to legalize bitcoin are the United States of America, Japan, Finland. In the United States of America, Bitcoin could be used as online shop payment, school or college payment and even another bill it supports the uses of bitcoin. America seeing bitcoin as one of good technology that could help people with their efficiency technology, that could bring everywhere following the owner of worldwide technology. Another big country that uses bitcoin is Japan, Japan achieve payment in many retailer and store using bitcoin.” In Japan there is one store that only achieves payment using bitcoin and does not achieve any other payment, Japan believes that payment using bitcoin is easier, faster and without any cost” (Prayogo, 2017). Another big country that also believe to use bitcoin is Finland, Finland is one of the countries that aware of the development of technology. They provide in every Money machine or ATM for purchasing bitcoin, exchange and top up bitcoin easily, using ATM or money machine Finlandia could record the data on how many transactions happen in their country easily. However, in some countries they still reject bitcoin regarding their opinion, the opinion of bitcoin leads to defraud the money and also related with reality that happen in the dark internet that uses bitcoin as one of the biggest payments they use for doing crime. One of the examples happens in Indonesia, Bank of Indonesia makes a verified statement that using bitcoin for payment is a danger because there is no guarantee. But Indonesia not close to the development of bitcoin that could be useful in the development of financial and economy of Indonesia.

           In the conclusion, the uses of technology in the development of financial and economy especially cryptocurrency create a bigger benefit, this also the beginning of blockchain in the reality and one of the triggers for much new technology using this. The rapidly increasing price of bitcoin also shown how to work their system is, it also shown by three big countries that using bitcoin as one of their system which are the USA, Japan, Finland. But of course, the development of technology not always bring positive impact like faster, proven from fraud, and efficiency. They also bring negative impact due to use the good impact on doing crime transactions, because of that the development of this technology is expected to have strong regulation and guarantee to proven from using bitcoin as the payment of crime transactions.

Image result for blockchain technology

References used

Accountant, I. o. (2016). Masa depan uang. Jakarta: Institute of Indonesia Chartered Accountant.

Anggorojati, B. (2018, August 20). Universitas Indonesia Fakultas Ilmu Komputer. Retrieved from Bitcoin, Teknologi Blockchain dan Internet of Things: https://www.cs.ui.ac.id/index.php/bitcoin-teknologi-blokchain-dan-internet-of-things-iot/

Poerhadiyanto, D. (2016). Masa Depan Uang. Jakarta: Institute of Indonesia Chartere Accountant.

Prayogo, C. (2017, November 7). Wartaekonomi. Retrieved from Ini 6 negara yang melegalkan bitcoin: https://www.wartaekonomi.co.id/read161176/ini-6-negara-yang-legalkan-mata-uang-bitcoin

Setiawan, S. R. (2017, December 7). Kompas.com. Retrieved from Nilai bitcoin sempat sentuh level tertinggi di Rp 261 JT: https://ekonomi.kompas.com/read/2017/12/08/071938826/nilai-bitcoin-sempat-sentuh-level-tertinggi-di-rp-261-juta

Sianipar, T. (2017, December 7). BBC INDONESIA. Retrieved from Bitcoin dilarang otoritas keuangan Indonesia, ini fakta-faktanya: https://www.bbc.com/indonesia/indonesia-42265038

b) How Blockchain work

Published by dimasbhas

Hello friends, My name is Dimas Surya Bhaskara, I was born in Samarinda in 1998. It was great to spend my childhood in Samarinda until my parents should move to Malang Jawa Timur because of work. So, I started Kindergarten in Malang near my house and continue to SDN Bandung rejosari 1 Malang. At the time my elementary school is one of the best in Malang, my elementary school wins several national competitions. The great day in elementary school I continued to Junior High school 9 Malang. There is nothing great basically in my Junior high school at the time because I never do anything really seriously maybe because it was my puberty time. I could say that my Junior High school was the time where I learned to be what in the future. I got several changed after getting the opportunity to test at Sampoerna Academy at the time. I remember that my friend that joins the same test with me for that Sampoerna academy was a way smarter than me. After the announcement, almost all of my teacher was really surprised that only I can be accepted in Sampoerna Academy. But, when I join in those senior high school, they changed the name to SMAN 10 Malang Leadership Academy batch 2 at the time. It was a great day in my senior high school, I started to join and winning much competition at the time. One of the greatest one is winning a bronze medal in national science and technology competition. However, nowadays my senior high school change the name to Taruna Nala. Its become very famous for every student who wants to be military and it is national senior high school. My great time in Senior High school ending with a happy story because I accepted to join Sampoerna University with a double degree program with Arizona University. It was really great in my university life I got two times opportunities to work part-time in 2 different company which are Pt Surya Panel and Pt Solid gold. The different experience that I got from them improves my life very well. I feel so blessed and grateful to be here until now :).

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