What is Digital Currency: Union Finance Minister Nirmala Sitharaman talked about launching digital currency during the budget of 2022. He told Parliament that digital currency will be launched this year by the Reserve Bank of India (RBI). It will be a blockchain-based currency. This digital currency has been said to be issued in early 2022-23. Now the question is coming into the minds of people what is this blockchain, how does it work, what is the digital currency associated with it, what will be the benefit to the common people. Today we will answer all your questions here.
what is a digital currency
Digital currency is based on blockchain technology. Finance Minister Nirmala Sitharaman has also reiterated the same things. This currency has been named Central Bank Digital Currency or CBDC in India. It will be issued by the Reserve Bank. The special thing about this currency is that you can convert it into sovereign currency. There are 2 types of digital currency. The first is a retail digital currency, which is issued to the general public and companies. The second is a wholesale digital currency, which is used by financial institutions.
what is blockchain
If we understand blockchain in simple words, then it is made up of two words. The first is Block, while the second is Chain. Block here refers to multiple data blocks in blockchain technology. That is, data is kept in these blocks. Here there are currency ie data in different boxes. Having currency in different boxes creates a long chain of data here. When any new data arrives, it is recorded in a new block. When a block is filled with data, it is appended to the previous block. Similarly, all the blocks are connected.
How Blockchain Technology Works
Blockchain technology works in a way in the exchange process. It works on data blocks, which we mentioned above. Each block is encrypted and electronically linked to each other. This technology was first used in 1991. .B Stuart Haber and W Scott Stornato used it to timestamp digital documents. After this, in 2009, Satoshi Nakamoto invented the cryptocurrency Bitcoin through the blockchain. You have to understand one more thing not only currency is created in Blockchain Technology, but you can keep a record of anything by digitizing it here. It's like a digital laser for you.
The way the crisis in Uddhav Thackeray's chair has deepened in Maharashtra, the failure of police
No mobile, no TV for two hours in Maharashtra village: Kids go inside as soon as the siren sounds
When we had just reached the village, a siren started blaring. Children playing on the roads were
Prime Minister Narendra Modi and West Bengal Chief Minister Mamata Banerjee on Sunday paid tribut
Elections will be held on May 25 in the sixth phase on five Lok Sabha seats in three di
There has been a lapse in the security of Union Home Minister Amit Shah. The TRS leader parked hi
Meta CEO Mark Zuckerberg spoke to hundreds of company employees on Monday. In the conversation, h
Rajasthan BJP chief CP Joshi has made a controversial statement about the Leader of Opposition in
The economic crisis in Sri Lanka is getting worse and all the efforts of the government to contro
On Monday, in Maha Kumbh, Shri Panchayati Bada Akhara Udasin witnessed the modern tradition of Dh
NEET UG Counseling: The process of registration for National Eligibility cum Entrance Test / NEET
