With the advancement of information and communication technology, our standard of living is constantly changing. Financial transactions have also been affected by this change. Coins were not in circulation at one time in ancient times. Then at one point, the coinage began to circulate; Then slowly the banking system developed. But at present a transaction system has developed which is completely new and quite striking from the previous transaction system; And this is cryptocurrency.
What is cryptocurrency?
Cryptocurrency consists of a combination of two words. One is crypto and the other is currency. This cryptocurrency is a type of digital currency. It is also referred to as a symbolic currency. It is a peer-to-peer arrangement; There is a transaction of money between the two parties, there is no interference from the third party. So no one but these two parties can know who is transacting this money. Transactions can be done even with anonymity.
This currency does not exist in reality, the entire transaction of this currency is conducted online. And a method called cryptography is used in exchange for such currency. In this method, code is written using such language or signals that no one other than the two parties to the transaction can understand.
Cryptography was invented during World War II to communicate secretly and securely. With the development of mathematical information and computer science, cryptography has greatly improved. Cryptocurrency has emerged with the help of cryptography technology to make money transactions more secure. Using this cryptographic method, American cryptographer David Cham began working on digital money transfer in 1983.
Then he named his subject e-cash. In 1995, he moved towards the implementation of the initial form of cryptographic electronic payment through DG Cash, and later was able to successfully implement money transaction activities by inputting certain encrypted keys through software. However, the first cryptocurrency was Bitcoin, which was discovered by Satoshi Nakamoto. It was the first stable and successful cryptocurrency to be successfully launched in 2009. Since then, the cryptocurrency has received a wide response around the world.
Different types of cryptocurrencies
Since the discovery of Bitcoin in 2009, various digital currencies have been integrated into the cryptocurrency world. There are currently more than a thousand cryptocurrencies on the Internet. Bitcoin, Etherium, Ripple, Light Coin, Monroe, Dash, Byte Coin, Dozcoin etc. are some of the most popular cryptocurrencies in terms of exchange rate. However, Bitcoin is the most popular of these and the use of this bitcoin digital currency is widely observed in many countries of the world.
How cryptocurrency works
The BBC reports: "Neither the government nor any institution prints digital currency like the conventional monetary system. Each digital coin is created in a complex calculation method called ‘mining’. Every transaction of all cryptocurrencies is monitored through an extensive network connected to numerous computers spread across the globe. This wide network system is called 'blockchain'. This blockchain technology can be used to buy bonds, stocks and other financial assets, including general transactions. ”
And The Telegraph reports, “Cryptocurrency is a kind of decentralized technology that can be used to make secure payments online. The money can be deposited by keeping the name of the depositor secret and without going to the bank. ”
Various digital currencies can also be purchased from online brokers. Cryptocurrencies can be stored online in a secure place called a ‘cryptographic wallet’.
Advantages of cryptocurrency
Since cryptocurrency transactions take place directly between the customer and the recipient, a variety of hassles are avoided. This is because when the transaction is done through a third party, the third party providing the service has to pay extra fee, also different conditions have to be fulfilled. And it is possible to exchange money through cryptocurrency many times faster than it is possible to exchange money through third party i.e. banking system. By paying a minimum charge you will be able to easily complete financial transactions on your own in different parts of the world.
The exchange rate of cryptocurrencies fluctuates, so there is an opportunity to make huge profits by trading through cryptocurrencies. And it is possible to make money transactions through anonymity and strict security through this cryptocurrency, which is almost impossible to do through any other corner. You will be able to enjoy such various benefits through this cryptocurrency.
The disadvantage of cryptocurrency
Since cryptocurrency transactions can be used to transact money anonymously, it often brings a negative experience for the customer or recipient. There is also no government intervention in these transactions, so the possibility of illegal money transactions is widely observed.
And for this reason, the use of cryptocurrencies is banned in many countries. Again, as the price of the stock fluctuates, you are more likely to incur huge losses.
Despite some problems and limitations, using the right and proper cryptocurrency, we can easily enjoy the benefits of this digital currency system.
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