The paradox is that, on the one hand, the government is prosecuting cryptocurrency users, and on the other, it is doing research on its possible legalisation.
Since then, a person or a group of persons going by the name of Satoshi Nakamoto pioneered blockchain technology to successfully deploy a currency known as Bitcoin.
Cryptographer David Chaum first proposed a blockchain-like protocol in 1982, which was further developed by Stuart Haber and W Scott Stornetta in the 1990s.
In simple terms, blockchain is an advanced digital ledger system where each ledger or block of data is connected to another ledger or block of data via a chain in the decentralised network, hence the name “blockchain”.
Instead of lawyers, smart contracts are written by programmers using computer code; and instead of the “rule of law”, the “rule of code” is followed.
Till now, we have learned about the advanced digital ledger system linked with each other in a decentralised network and about smart contracts, these two tools are fundamentals to blockchain.
Currently, a lot of financial dApps are launched on different blockchain platforms, and are known as decentralised finance made on blockchain platforms can be used in a lot of fields.
They have the upper hand in this free market as they can integrate the newly discovered distributive ledger technology with traditional banking to compete with the new DeFi institutes.
The use of cryptocurrency in place of money is the future; but in a digitally divided society, redundancy of the central bank’s role in monetary policies, unexpected fluctuations in the price of cryptocurrencies and other pertinent issues need to be taken care of by a country like Nepal.