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What is Cryptocurrency?

Bitcoin can be a bit tricky, since created in 2009 by an individual under the alias Satoshi Nakamoto. The blockchain system allows transactions to be sent between peers without going through any government authorities, banks and payment gateways, free from centralized regulation. Bitcoins are not minted like regular cash, they are held electronically produced by computers in a decentralized system.

What makes cryptocurrency so special is that it is decentralized, is it not controlled by any authorities. The network is organized and sustained by volunteer coders and operated through an open network of committed computers across the globe. Cryptocurrency attracts people and groups from everywhere in the world, who do not find themselves comfortable with banks and government organizations controlling their assets and money.

Bitcoins also provide users a sense of anonymity and privacy. The bitcoin system does not need to know anyone’s identity. Blockchain technology enables users with pseudonyms, however if pseudonyms are connected with personal data, then clients and their exchanges may be traceable. Due to the popularity and rise in value of cryptocurrencies, governments around the world have been attempting to reinforce some sort of regulation. Many experts fear that these government interventions may hinder the openly traded cryptocurrencies worldwide.

About VPNs

A VPN (virtual private network) is a secure solution that allows users on the Internet to transfer data while maintaining the secrecy of a private network. VPNs conceal your IP address by taking on one provided by the VPN service provider, so your activities online are essentially untraceable, whether you want private torrenting or just want a bigger Netflix library. A VPN can protect your identity and personal data that may be associated to your data on the blockchain.

Combined with the anonymity under a pseudonym of a blockchain, a VPN permits users a significantly advanced level of security. This can be additionally reinforced by:

  1. Encrypting your digital wallet, which makes it much more difficult to access your transactions and communications.
  2. Having multiple digital wallets for various types of payments
  3. Ensure that the payment address is kept private. If there is any history of funds being transferred from a publicly visible address, it will be directly linked via transaction history

Avoiding GeoIP Bans

Recently there have been many talks in Korea and China to prohibit Cryptocurrency trading to some extent. Despite, both these nations having a huge market for cryptocurrencies, the effects could be substantial.

Many countries are looking for ways to hinder cryptocurrencies, as regulations can be implemented through GeoIP bans, which are also referred as geo-blocking. This procedure confines content based on the locale associated with a user’s IP address.

VPNs may be the solution in some cryptocurrency inconsistencies and regulations, however some countries have outlawed the use of VPNs altogether.

This article was written by the NUS community. If you would like to contribute your article, please get in touch.