Exploring the cryptocurrency world

We know that Bitcoin is a type of cryptocurrency, and the first cryptocurrency ever made. But despite the awareness in the crypto world, many of us still do not know what cryptocurrency is. So this is the quick and simple explanation about cryptocurrency for those who are unfamiliar.

What is cryptocurrency?

Cryptocurrency is the combination of the word cryptography and currency. And it's also called digital currency, but it's not like our traditional currency is digital. The technology behind cryptocurrency is a bit complicated. It's called blockchain, if you don't already know blockchain then just go here.

To better understand, it is best to come up with an idea about cryptography.

Cryptography is an ancient way of storing confidential information through a message that no one but the recipient can understand. There were so many types of cryptography technigues during the ancient times of the Greeks and Spartans.

And the scytale is here. The scytale technique is written on parchment paper wrapped in a round cylinder. The recipient only knows how to read it correctly, the receiver must decrypt the message wrapped in the lether strip and read it correctly.

The example of a ciphertext is like "ashdyahboydhkokdojdnnjdhap". Isn't that easy to understand?

The way to wet it is every five letters and appears in the same line. And the result is "I don't want you." Don't think so much about what I just did, but hopefully that gets your idea.

Cryptology, in turn, is the study of innovative ways in which confidential information can be stored. And this process evolves over time. So far cryptology has already been enhaned and is also being used in the digital world.

This is where digital money originates, in the combination of modern programming languages ​​and techniques — plus the innovative way of storing confidential information.

Here cryptocurrency is formed which includes Bitcoin, Bitcoin cash, Ethereum and Litecoin etc.

And it has become more secure because of the technology behind blockhchain technology. In other words cryptocurrency is a form of currency in a form of digital, with no central issuing or regulating authority. It is a decentralized and cryptographically secured system.

Different types of cryptocurreny

There are different types of cryptocurrency spread in the market, and it would be nice if we could come up with an idea of ​​its different types.

Payment Currencies

• These are coins made for payment purposes. It can be used to buy goods, pay your bills and pay online. This is known as coin coinage.

• The cryptocurrencies on its list are Bitcoin, Litecoin, Monero etc.

Blockchain Economies

• The term is somewhat unfamiliar, but it is also called a blockchain platform that utilizes the functionality of blockchain technology whose purpose is not just for payment.

• This platform allows users to create their own digital assets (tokens), decentralized applications (dapps), etc. Leading these cryptocurrencies is Ethereum. Other cryptocurrencies such as ETC, Neo, Tron and EOS follow suit.

Privacy Coins

• Because cryptocurrency is not synonymous, there are assets created that focus on privacy. Only the sender in the privacy transaction and the receiver know how much the coin is worth. And only the owner of the privacy wallet knows how much it contains. Unlike the bitcoin blockchain each transaction amount is displayed as well as the wallet address.

Utility Tokens

• These are the tokens used in blochain based products and services. It runs on the blockchain platform and is part of the blockchain economy. The most popular utility tokens are the ERC20 tokens that run on the Ethereum blockchain.

• Examples of utility tokens are Basic Attention Token (BAT), Omisigo (OMG), and 0x (ZRX).

Stable coins

• From the name itself stable, unlike normal cryptocurrency with high value. The stable coin needs a stable price. This is what traders often use as their favorite cryptocurrency to prevent too much financial loss.

• There are many different types of stable coins and they follow his method. Some of these are JPM coin of JP morgan and Libra of facebook (not yet sure if marerelease). Other examples of stable coins found in these exchanges are USD Coin (USDC), Paxos (PAX), TrueUSD (TUSD) and Tether (USDT), etc.

Conclusion

This is just a quick overview of cryptocurrency, so we can only come up with an idea and not even understand its technical aspects. That's not a requirement unless you're a developer and you're a very techie person. Well, there are many articles on the internet that are scattered about technical stuff. This is just for ordinary people who want to explore the cryptocurrency world.

Thank you for reading. I hope it will help.