The innovation in the field of trends and technology helps the organization to upgrade their working scenario by making it more secure and free from uncertainties. The purpose of this paper is to explore the importance of Bit coin to the organization, risk associated with the Bit coin data, conversion of Bit coin to other currency, advantages of using Bit coin for payment, prevention from theft, and activities associated with management decision on information security. Managing the information is the major challenge which comes forward in the path of success of the organization. As a CIO, the role and responsibility is to secure the enterprise from the loss of information. “The risks associated with the information security affect the continuation of the operation and the implementation of control signals in the curriculum of the firm” (Sethi, 2013). The online purchase and sale of the product creates an insecurity of theft from the hackers in carrying out transaction. The research has been carried out for the search of alternative solution for payment which is more secure and no fear of theft associated with it. From the research, I analyse that use of Bit coin for making payment is the best solution for the organization. “Bit coin is the crypto-currency payment system. It is open source software” (Brock, 2011). The Bit coin software used peer to peer connection of the system so that direct payment can takes place without any intermediaries. “The network nodes are used for the verification of the transactions which are recorded into public distributed ledger” (Desai, 2016). The public distributed ledger is called as block-chain in which the transactions of Bit coin are recorded. The Bit coin is also refereed as virtual currency. In this paper we will focus on the importance of Bit coin to the organization.
From the research, it has been analysed that Bit coin is the new revolution in the trust less payment system. It makes use of block-chain technology for carrying out online transaction. The block chain technology helps in achieving the concept of virtual currencies. “The traditional payment system works on the centralised system in which government and banks plays a role of the mediator” (Loyd, 2015). The users have to trust on the third party for carrying out online transaction. The innovative concept of Bit coin works on the decentralization of the system in which the direct transaction takes place between user and the receiver without any intermediaries. There is no third party included for tracking out the transaction. “ The network nodes are used for the verification of the transactions which are recorded into public distributed ledger” (Murphy, 2015). This concept is known as block chaining technology. Every organization converting their working tactics from traditional to Bit coin system to creates a secure environment for their organization. I”t has been researched that there are three areas where the Bit coin solution has to be considered which are categorised as Platform, block chain solutions, and applications” (Thomson, 2014). Platform has to be developed for the accessibility of the block chain application for facilitating the end user. Block chain solutions should be equipped by the organization for carrying out secure transactions of payments. “The underlying technology is used for the accomplishment of specific tasks of the end user” (Badev, 2014).
Block chain is defined as the ledger of transaction.in the traditional system, physical ledger is maintained on the centralised organization but not by market participants. In this new technology, the distributed ledger is equipped by each participating device. On the completion of the transaction the real time system get updated on the participating devices. “The collection of devices in the Bit coin system is known as network of nodes” (Polasik, 2014). The authentication has to be received from the participating devices for the completion of transactions. The complete record of transaction will be downloaded on the computer system of the new entrant in the network. The mechanism of digital signature is used for authenticating the transaction. The digital signature has to be send with the transaction to make it secure. The public and private key is maintained by every node of the network. When a transaction message is generated by the node, the private key is used for creating digital signature at the sender end. The manipulation of the system cannot be possible with the implementation of block chain technology. The authentication of the digital signature result into the pool of authenticated transactions which are placed into the single block for transmission. Cryptographic hash functions are used for encrypting the block of transactions. The decryption of each block takes place at the receiver end. Every node participates in the network for decrypting the block. This process is known as mining and the participating nodes are called as miners. Transparency of the transaction can be maintained by the block chain. Bit coin value is rewarded to the Bit coin block chain. Platform has to be developed for the accessibility of the block chain application for facilitating the end user. The figure below shows the working of the Bit coin system.
The Bit coin technology is used when number of transactions participates for payment and each transaction has to be recorded at the participating node. The transactions are verified in relation with the integrity of the information and participating events. Transparency, permanence, and decentralization are the pillars of Bit coin technology. This technology works on clearing the financial issues, settling down of record keeping functions, and the maintenance of real estate records. The online purchase and sale of the product creates an insecurity of theft from the hackers in carrying out transaction. The use of Bit coin helps in overcoming the feeling of insecurity. The open source software should be downloaded by the user to work on Bit coin system. The conventional money can be exchanged by the user using online transaction.
The organization should adopt the technology of Bit coin in its working scenario because of the following reasons:
The transaction through Bit coin is faster than the traditional system of payment because it does not involve the participation of the third party such as government or banks. The instantaneous transaction took place because it need zero confirmation from the third party. Bit coin block chain technology is used for the verification of the transaction and recorded into the public distributed ledger.
The Bit coin transactions are cheaper than the debit card transaction because the merchant charge fees of swiping of debit card which is not paid in the Bit coin system. The use of Bit coin helps in overcoming the feeling of insecurity. The open source software should be downloaded by the user to work on Bit coin system.
No amount of money is paid to the central government because the transaction took place between the participating parties. The central authority has no control over the transaction as in traditional system.
After sending of the Bit coin, the sender cannot retrieve them back without the permission of receiver. The occurrence of fraud is minimized to the large extent. In the traditional system of credit card, millions of cases have been seen of fraud because the customer can ask for the chargeback of his purchase.
The online purchase and sale of the product creates an insecurity of theft from the hackers in carrying out transaction. The use of credit card for online purchase is the insecure mechanism of payment. The secret information of the customer can be hacked by the hackers which result into the loss of money. In the Bit coin system, the user does not have to give their secret information online. The transaction through Bit coin involves the use of public and private key for the encryption and decryption of the transaction. Digital signatures are used for the secure transmission of payments.
The regular currency can be printed by the government according to their need which result into the decrement in the value of the currency. This process is called as inflation because it results into the increase of cost of the product and goods and decrease the value of the currency. Bit coin is the solution to overcome the problem of inflation. Twenty one million is the maximum numbers of Bit coins which can be created which results into the deflation which means that he price of goods and services will fall and value of the currency will be increased.
The purchasing of the people can be kept private by using the technology of Bit coin. Bit coin is also termed as private currency. Transparency of the transaction can be maintained by the block chain. It appears to be the plastic wallet which is no visible to the owner. It does not provide the information of the owner who is holding the Bit coin. Local node policy does not provide permission to embed arbitrary data into the transaction.
The third party is not involved in carrying out the transaction though Bit coin. The user does not have to trust on the bank for making payment. The Bit coin works on the decentralization concept in which only two parties participate which are categorised as sender and receiver. The digital signature has to be send with the transaction to make it secure. No commodity can hack the Bit coin currency.
Cryptographic protocols are used for making Bit coin more secure for making payment. The functionality of the Bit coin can be disturbed by the hackers. The security should be provided to the stored Bit coin. The aim of the hacker is to disturb the infrastructure of the Bit coin system. Illegal activities can come into existence by using the concept of Bit coin because the terrorist can do secret purchase of illegal products.
Marketing strategy can be developed on the basis of the Bit coin. The publicity can be gained by using the internet associated with the Bit coin transaction. The communication tools can be used for attaining the concern of the customers. The young generation are transforming their payment mode towards online transaction. The security of online transaction can attract customers towards the organization which in turn results into maximisation of profit. “The Bit coin method provides convenience to the customers” (Kristoufek, 2015). The risk associated with the online transaction can be minimized to the large extent. Bit coin transactions are cheaper than other payment mode. These transactions are irreversible in nature. The organization can have their own Bit coin wallet for receiving payments from the customers. This reduces the risk of fraud which helps in raising the profit of the organization. “The buying and selling of the Bit coin can be carried out both offline and online mode” (Bjerg, 2015). The organization should adopt the technology of Bit coin for making payments of purchase and sale. It provides new opportunities for the mainstream of the business. It is the better way for making payment than traditional way of doing transactions. “It benefits the organization by delivering direct money into the account of the organization without paying any charge to the third party such as government or banks” (Kancs, 2015). The use of credit card for online purchase is the insecure mechanism of payment. The secret information of the merchants can be hacked by the hackers which result into the loss of money.
|
Particulars |
Description |
|
Vulnerability of theft from wallet |
The encryption technique is not applied on storing of wallet. The changing of password is the challenge for the non-technical users. |
|
Tracking of coin history |
The identities of the user is not known in carrying out of transaction |
|
Sybil attack problem |
The network of nodes can be filled by the hacker’s client and can disconnect the original user from the network. |
|
Packet sniffing |
Packet sniffing is the method in which the hacker can get knowledge about the time at which transaction has been carried out. |
|
Denial of service attack |
Denial of service attacks can restrict the forwarding of the transaction over the network. It can also restrict double spend transaction. The same block cannot get the transaction twice. |
|
Block chain illegal content |
The illegal distribution of data can takes place. Bit coin transaction makes use of arbitrary data which cannot be copy into unspent transaction. Local node policy does not provide permission to embed arbitrary data into the transaction. Transparency of the transaction can be maintained by the blockchain. It appears to be the plastic wallet which is no visible to the owner. |
|
Security vulnerabilities |
It is hard to upgrade every node in the short period of time. Single malformed message can be used for exploiting the specific vulnerabilities. |
|
Breaking of cryptography |
The strong algorithms are used for encryption. It is hard for the hacker to decrypt the encrypted information |
|
Scalability |
The traffic of the Bit coin is easily scalable |
|
Segmentation |
The connection between two users perfectly works with the principle of segmentation. It is difficult for the hacker to disconnect the user from the network of nodes |
|
Attacking all user at a time |
The addresses of all the user is hard to collect at a time for hacking their system |
|
Dropping of the transactions |
The transactions are not included in the general blocks. The transactions are remained in the active state during the communication. |
|
Spamming of transactions |
It is not an easy task to send repetitive transaction in the bit coin system. Only one transaction is displayed in one block. Other transaction will be dropped into the other block which helps in minimising the spamming of transactions |
|
Destruction of currency |
There is no problem of destruction of currency. The use of bit coin helps in minimizing the inflation in the country. |
Bit coin is gaining popularity because of the strong security system which helps the user to carry out secure transactions. It minimised the monetary losses from fraud or hacking attacks. The online purchase and sale of the product creates an insecurity of theft from the hackers in carrying out transaction. The use of Bit coin helps in overcoming the feeling of insecurity.
The Bit coin software used peer to peer connection of the system so that direct payment can takes place without any intermediaries. The network nodes are used for the verification of the transactions which are recorded into public distributed ledger. The public distributed ledger is called as block-chain in which the transactions of Bit coin are recorded. The valid chains are developed for the network of nodes. Simplified payment verification technology is used for increasing the efficiency of the untrusted nodes which participates in the transaction of payments. Hard code checkpoints and the proof of work are the pillars of simplified payment verification mode.
The public and private key is maintained by every node of the network. When a transaction message is generated by the node, the private key is used for creating digital signature at the sender end. The authentication of the digital signature result into the pool of authenticated transactions which are placed into the single block for transmission. Cryptographic hash functions are used for encrypting the block of transactions.
The Bit coin method provides convenience to the customers. The exchange of currency through bit coin system is similar to bank system. “It appears to be the plastic wallet which is no visible to the owner” (Miller, 2015). Secure SSL connection is used for exchanging of bit coin currency. The standard web browser is required to carry out the transaction. The methods which are commonly used for exchanging of Bit coin currency are named as bit coin transfer, liberty reserve, bank wires, and credit card. “The currencies into which Bit coins are automatically changed are named as US Dollars, Euros, Japanese Yen, Rubles, Pound, and Gold” (Moser, 2014). Chargeback fraud is the major issue associated with the exchanging of Bit coin currencies. “The goods and services can be purchase or sale by using the concept of exchange of bit coin which helps in maximising the profit of the organization” (Wang, 2011). There are some features of Bit coin exchange which are different from the traditional exchange which is listed below:
The bit coin system is highly volatile which results into the association of risk with it. Bit coin provides the sign of stability because it has a powerful security system to prevent the organization from money loss. Crypto-currencies is the new technology which creates the picture of stability in the mind of the user for carrying out online transaction. “The security protocols can be used for minimising the risk associated with the bit coin system” (Johnston, 2015). The world-wide trading system can be improved by using the Bit coin technology in the curriculum of the organization. 30% of the trading can be improved by block chaining system. The sign of maturity can be seen in the society. “Massive volatility and virtual currency helps in attracting new customers towards the organization” (Tillier, 2014). Vulnerabilities can be minimized by using the concept of this newer technology. The use of public key and private key in the encryption of transaction helps in minimizing the risk associate with the system.
Conclusion
The young generation are transforming their payment mode towards online transaction. The security of online transaction can attract customers towards the organization which in turn results into maximisation of profit. 30% of the trading can be improved by block chaining system. The sign of maturity can be seen in the society. Empirical regularities can be offered by using the Bit coin operations. From the research and survey, it has been analysed that it is the best method to promote secure purchase and sale of goods and services across the world. The implementation of bit coin system in the curriculum of organization helps in carrying out trading of products at international level. The risk associated with the online transaction can be minimised with the implementation of bit coin system. Bit coin is gaining popularity because of the strong security system which helps the user to carry out secure transactions. It minimised the monetary losses from fraud or hacking attacks. The organization should adopt the technology of Bit coin for making payments of purchase and sale. It provides new opportunities for the mainstream of the business. It is the better way for making payment than traditional way of doing transactions. The purchasing of the people can be kept private by using the technology of Bit coin. The innovative concept of Bit coin works on the decentralization of the system in which the direct transaction takes place between user and the receiver without any intermediaries. There is no third party included for tracking out the transaction.
References
Brock, J. (2011). Information security risk assessment: Practices of leading organization (1st ed.). Retrieved from https://www.gao.gov/special.pubs/ai00033.pdf
Sethi, S. (2013). An introduction to the information system risk management (1st ed.). Retrieved from https://www.sans.org/reading-room/whitepapers/auditing/introduction-information-system-risk-management-1204
Desai, N. (2016). Beyond bitcoin exploring the block chain (1st ed.). Retrieved from https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research%20Papers/Bitcoins.pdf
Murphy, E. (2015). Bit coin: Questions, Answers, and analysis of legal issues (1st ed.). Retrieved from https://fas.org/sgp/crs/misc/R43339.pdf
Loyd, L. (2015). Bit coin risk factors (1st ed.). Retrieved from https://www.lloyds.com/~/media/files/news%20and%20insight/risk%20insight/2015/bitcoin%20%20final.pdf
Polasik, M. (2014). Price fluctuation and the use of bit coin: An empirical enquiry (1st ed.). Retrieved from https://www.ecb.europa.eu/pub/conferences/shared/pdf/retpaym_150604/polasik_paper.pdf
Thomson, D. (2014). Why use bit coin? (1st ed.). Retrieved from https://www.coindesk.com/information/why-use-bitcoin/
Badev, A. (2014). Bit coin technical discussion and data analysis (1st ed.). Retrieved from https://www.federalreserve.gov/econresdata/feds/2014/files/2014104pap.pdf
Kristoufek, L. (2015). What are the main drivers of the bit coin price? (1st ed.). Retrieved from https://arxiv.org/pdf/1406.0268.pdf
Bjerg, O. (2015). How is bit coin money? (1st ed.). Retrieved from https://research.cbs.dk/files/44436178/ole_bjerg_how_is_bitcoin_money_postprint.pdf
Kancs, A. (2015). The digital agenda of virtual currencies (1st ed.). Retrieved from https://publications.jrc.ec.europa.eu/repository/bitstream/JRC97043/the%20digital%20agenda%20of%20virtual%20currencies_final.pdf
Miller, A. (2015). Research perspectives and challenges for bitcoin and crypto-currencies (1st ed.). Retrieved from https://www.ieee-security.org/TC/SP2015/papers-archived/6949a104.pdf
Moser, M. (2014). Towards risk scoring of bitcoin transaction (1st ed.). Retrieved from https://fc14.ifca.ai/bitcoin/papers/bitcoin14_submission_15.pdf
Wang, J. (2011). Bit coin as Money (1st ed.). Retrieved from https://www.google.co.in/url?sa=t&rct=j&q=Research+paper+pdf+How+the+bit+coin+is+converted+to+other+currencies&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwivpYjkx-TSAhXGrJQKHaPNA0UQFgg6MAI&url=https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/cpp1404.pdf&usg=AFQjCNEvpUAUCRVBIZKed075bRHAA-aRqg&bvm=bv.149760088,bs.1,d.dGc
Hong, A. (2014). Why is investment in bitcoin risky (1st ed.). Retrieved from https://www.quora.com/Why-is-investment-in-Bitcoins-risky
Tillier, M. (2014). Why bit coin stability in volatile market makes long term investment (1st ed.). Retrieved from https://www.nasdaq.com/article/why-bitcoins-stability-in-volatile-markets-makes-it-a-must-own-for-long-term-investors-cm418813
Johnston, A. (2015). Information security management (1st ed.). Retrieved from https://www.uab.edu/cas/thecenter/images/Documents/Information-security-management-objectives-and-practices-a-parsimonious-framework.pd
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