They say cash that is no longer in and cryptocurrency is the new trend and for a good reason. Bitcoin makes a good investment because the rate goes up from time to time even though there are instances that it fluctuates. When it gets back on track, the rate skyrockets the least when you expect it.
What does cryptocurrency mean?
Cryptocurrency is a digital structure of currency designed to be used as an exchange medium. It makes use of cryptography, a process by which deciphering of transferred contents are involved to trace transfers and procurements. Since World War II, cryptography has been used to secure intelligence and developed in the digital age with mathematical ideology along with computer science. With the help of technology, it becomes a measure to protect the communication as well as money online.
How does it work?
The system associated with cryptocurrency allows payment to be transferred between users without running on any central authority like banks. Bitcoins are not printed bills just like dollars or euros. They are created by computers all over the world with free software.
The Bitcoin Inventor
Satoshi Nakamoto as we know it is the inventor of Bitcoin which is the mother of all bitcoins. He has no intention to invent a currency but an electronic payment system centered on mathematical information. His idea was to develop a means of exchange with no central authority involved and the information can be delivered electronically in a protected, valid, and irreversible manner.
Major Types of Cryptocurrencies
Cryptocurrencies come in different kinds and designs and with different technology and approach.
Bitcoin (BTC) is the most dominant of all currencies and as earlier mentioned was conceptualized by Nakamoto in 2009. Its circulation is established by regular users by means of “Bitcoin mining”. It can be forwarded wherever and whenever you want with little or no charge and without regard to national borders or any regulations imposed by the bank or government.
Litecoin (LTC) uses a Scrypt encryption system, opposing SHA-256. This cryptocurrency’s absolute available amount for mining and circulation is quadruple of Bitcoin’s quantity. It means that Litecoin has four times its quantity that is obtainable to Bitcoin.
Ethereum can be used as a platform to produce blockchain applications as well as new tokens. It uses smart contracts and together with distributed applications to be developed and run with no intermission, scam, intervention, or manipulation by a third party.