Bivas
How does BitCoin and BlockChain Work? Is it legal in India?
Bivas Chatterjee 7 Jun 2019

How does BitCoin and BlockChain Work? Is it legal in India?

Today our discussion is on blockchain and Bitcoin and whether the Bitcoin is legal in India and again also the effect that the Facebook is going to come with its own cryptocurrencies and what is its effect in India because presently as per 2018 report from various sources the highest number of subscriber to the Facebook is in India.


Let us first come to the core concept of blockchain and then will come to another particular area of blockchain which has obviously become very popular is Bitcoin.


The blockchain is a distributed immutable ledger and it's a distributed immutable ledger with various blocks and every blocks contain data and the previous hash and the present hash and there are hashes of hash, so when there is a the question of security, the blockchain is the best answer.


In blockchain, we do have trust, accountabilities, transparency at its core and that is the beneficial part of the blockchain and bitcoin is one of its applications where the same hashing and cryptography is being applied.


The concept of Bitcoin came in the year 2009 when there were economic problem throughout the world with various centralised currencies. Countries which has almost banned the cryptocurrencies are China and even in India RBI has come up with notification in 2018 to that effect. There are countries like Canada and USA who has actually accepted that cryptocurrencies in many parlance and there are countries who are

watching the things and they are going to take its better part in the days to come.


So there is nothing harm in blockchain because block chain is going to provide us immutability in every transaction and it will definitely going to give the trustworthiness in every smart contracts.But for Bitcoin there are lot of legal and other controversial issues which are coming up. The most important point obviously is that if currency been controlled by some non centralised agencies (because in Bitcoin the entire transactions is decentralized and creation of the Bitcoin will stop in 2140 as per the algorithm)......

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Bitcoin is just like one of the blockchain where the digital asset is the currency. One person may transfer ownership of a digital assets like a cryptocurrency to another and that asset will move from one person's wallet to another person’s wallet as a payment will move from peer to peer throughout the network.


The question obviously all the time raised is that if there is no control by any agencies of any country and be controlled by some miners who creates bitcoin, who will going to control or put a tab on speculation and money laundering. There was a huge rise in the price of a Bitcoin within every few years and this phenomenal growth is also allured the people to invest more and more in the Bitcoin but from thereon the question of speculation comes up and another darkest thing is in lot of crimes like arms trading, narcotic drugs trading, it has been seen that Bitcoin has been used as the currency.  Now for example in countries like India having this type of infrastructure our investigating officers are going to investigate a case where the money trail is completely in a Bitcoin, then how can an investigating officer clearly find out the entire movement of the money if the money or the ransom or the considerations of the criminal money is being transacted by way of the Bitcoin. 


If the Bitcoin has taken charge of the virtual real currencies then the question obviously asked who will going to control the value, who will going to control the mine and what will be the result of the conflict between these cryptocurrencies and laws.


One white paper on Bitcoin was published by Satoshi Nakamoto on bitcoin.org and if you download that nine pages of Bitcoin white paper you will see, that the entire transactions and all the activities and how the double spending problem will going to be solved all have been discussed in that white paper having a title Bitcoin a peer-to-peer electronic cash system. The money will be transferred from one party to another but we need not to go to any bank or any finances institution.


Bitcoin and the paper came in the world in 2009. This white paper gives more emphasis on day-to-day commercial activity on the internet. It has given a direct challenge to the trust based transaction model which we have today like our business with the bank, our business with others.


It says it is purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. In this white paper containing nine pages the entire double spending issue and other issues have been explained by Satoshi Nakamoto especially the chapter namely Transaction is very interesting and in the entire chapter we will going to find that an electronic coin is a chain of digital signature...............................


Now what about the Indian scenario?  public-interest litigations been filed before the Honourable High Court at Calcutta ………for details please visit at : https://www.youtube.com/channel/UCbrEFdbw0mJIZm-SvtLy7Xw?view_as=subscriber

How does BitCoin and BlockChain Work? Is it legal in India?


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