Although there are plenty of advantages in using bitcoin, the sheer number of hacking incidents and security threats on the cryptocurrency arena have made it difficult for people to trust the bitcoin ecosystem. The lack of a monetary authority governing the exchanges and implementing regulations has been blamed as the main factor why bitcoin has failed to kick off in the past years.

When bitcoin was created by Satoshi Nakamoto back in 2008, he claimed that this could revolutionize payments in that parties would be able to execute electronic transactions without relying on trust. Bitcoin is not backed in value by assets such as gold nor is it controlled by a central bank. Instead, its primary feature is the blockchain, which is a public ledger of transactions for bitcoin.

Revamping the Bitcoin Ecosystem

While the technology in the bitcoin ecosystem has been robust, there is much work to be done in ensuring that cryptocurrencies are stored safely and that consumer protection is paramount. For one, the bitcoin community espouses the creation of a set of common standards and best practices that can be applied to transactions.

Apart from that, there is a need for professionals and authorities to oversee developments in the bitcoin ecosystem. Tools and technologies need to be further developed and enhanced to add security features to bitcoin wallets and online transactions. Some suggest that barriers to entry to the bitcoin ecosystem can be developed to ensure that a commitment commensurate with responsibility is made before one has access to the system.

Any advances in bitcoin technology can be geared towards greater transparency and consumer protection than currently exists in the traditional financial system. Bitcoin technology has shown strong promise in online transactions as well as international remittances, and there are several more benefits that the cryptocurrency can offer once the negative aspects are reduced.