Understanding Cryptocurrency using BCH
cryptocurrency is a virtual or a digital currency that works on blockchain technology. This implies that it is entirely online, it has no physical form. It is designed to work online as a medium of exchange for goods and services. Cryptocurrency can be used to buy something as compared to our physical money, as in the dollar or naira note. Cryptocurrency was first invented in 2008 by someone or a certain group that goes by the name Satoshi Nakamoto. Nobody entirely knows the identification of this group, but the cryptocurrency began its use in 2009 when its implementation was released as an open source software.
The Satoshi Nakamoto group that invented cryptocurrency built a system called the blockchain technology which has the ability to store transaction in blocks. They introduced a virtual currency called the bitcoin, this is the first cryptocurrency. But as of today we have other cryptocurrencies, as in the Bch that will be our main point of emphasis in this article. The cryptocurrency was invented as a reward you get for doing works for the blockchain. Just like it is on this platform, you get rewarded with BCH for sharing your articles.
The BCH is able to process transactions more quickly, the wait times are shorter and transaction processing fees tends to be lower. The Bitcoin cash network can handle more transactions per second. Now, when you get this BCH, you can exchange it for a particular goods online or service. Cryptocurrencies are stored in crypto wallet. In comparing cryptocurrencies to physical form of money that we all know, physical money are kept in banks and are produced in the mints, but cryptocurrencies are kept in the wallet and are produced through the process of mining. Mining is the process of you doing the work for the blockchain. When you do the work, you are a miner and you get rewarded in crypto.
There are other forms to get cryptocurrencies, you can buy it from brokers or from miners. you pay a miner with your physical note, as in dollar note and you get cryptocurrency into your secured Bitcoin cash wallet. There is no physical touch to your cryptocurrency, this means that when you own a cryptocurrency, you actually own a form of money that is not really tangible, but it is a form of exchange for you, so you can use it as exchange for goods or services online. The word crypto behind this term means its an encryption based currency, the crypto means cryptography, it is important to know that that it is a cryptocurrency that is well encrypted with cryptographic algorithms.
When the bitcoin was introduced, it was kind of a way to eliminate third party or physical form of validators for transaction. Comparing it with banks, the work of the bank is to validate transaction and also to validate printing of notes. But with bitcoin cash now, what validates it is not physical authority or government authority, nobody has any form of control over the bitcoin cash. The entire trust of what you have is based on this amazing technology called the blockchain technology. The blockchain technology is another notable thing for discussion. I will be doing justice to it in my next article.
