‘BITS’coin- The pros and cons of a hypothetical campus-wide digital currency

Goransh
Goransh
Sep 5, 2018 · 3 min read

The idea is to implement a bitcoin like cryptocurrency exclusive to the college campus of BITS Pilani. Before analysing the pros and cons of the idea, let`s have an overview about the concept of cryptocurrency and blockchain.

What exactly is cryptocurrency?

It is a digital or virtual form of currency which relies on encryption techniques to manage transaction records and maintain security. BITcoin is one of the oldest and most popular forms of cryptocurrency created by a group of individuals under the pseudonym Satoshi Nakamoto. It uses the blockchain data base.

What is blockchain?

Blockchain is an ever-evolving list of records. Records of all the transactions which occur in a wide ranged peer to peer network. This way, a need of centralization and third party banks is eliminated.

Image result for blockchain

Now that the basic meaning of the words are clear, let`s see how the idea of cryptocurrency can be implemented in the campus of BITS Pilani.

At the beginning of the semester, students will be required to deposit real world currency in exchange for the BITScoin, given to them at the prevailing exchange rates. This system is already partially implemented as students submit an advance for their swd account which is charged to their mess account bill. This digital wallet can be used by the students for their daily expenditures. The digitial currency might also be used to pay the fees.

PROS:
The digital currency provides easy access of monetary resources to students and reduces the hassle of withdrawing and handling hard cash. It provides a method for quick and easy payments to the shopkeepers and canteen owners of the campus. The blockchain encryption provides security for all transactions and reduces the risk of theft. Mainly the use of cryptocurrency eliminates the need for third party middlemen or banks, and there is no need to visit the banks or ATMs, whenever the need for money arises.

Cryptomining is a major part of using cryptocurrency wherein the virtual transactions are verified and added to the blockchain records. An inhouse mining software would be required for the same.

CONS:

One of the major flaws in the use of cryptocurrency on campus is the high amount of fluctuation which probably will occur in the market value of BITScoin. This might lead to loses, especially for large transactions like tuition and hostel fee payment. The students will be eager to convert their BITScoins back to real world money to earn profits upon rise in BITScoin value.

Digitization also opens backdoors for cracking into the system for illegal virtual thefts. Although safeguards can be implemented to make sure that it doesn`t happen.

There we go! Now that I have laid out all the good and bad which might come from implementing crypto-currency on campus, I leave it to the readers to decide whether this is a good or bad idea. Although the fact that we might get to have a virtual monetary world of our own someday on the campus of BITS Pilani excites me!

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