Thanks for the detailed explanation.
I have one further question:
Will the Pangu Jailbreak work with IOS 7.1.2, which is set to be released soon. If It will, then I will wait to upgrade.
It will, but it will have to be updated to support 7.1.2 (all you really need is to add the build number to the list of supported iOS/device combinations). 7.1.2 has been seeded to carriers already earlier this week, so there won't be any revisions for 7.1.2 to patch the exploits/vulnerabilities used. So 7.1.2 will most likely be supported by an updated version of PanGu, 7.1.3 will probably not.