While sometimes we start conversations with friends naturally someone would come up with the discussion of cryptocurrency. Surely cryptocurrency everyone wants to take about but no one really knows how its works. Since humanity currency is being quite an important part of our life as early we use barter system for the exchange of good between each other. So for instance we have a situation here where a man is exchanging apples with oranges but don't know the actual worth to be exchanged in return. The flaw like people's requirements need to coincide, there’s is no measure for value, not all goods can divide and subdivided into parts for exchange and the good cannot be transported easily.
After realization, the modern currency as we know came into the economy. In 110 BC, an official currency was mined. In 1250 AD, gold-plated florins were introduced as the medium of exchange, From 1600 to 1900 AD paper currency gained popularity worldwide. This is how modern currency came as we know it. Modern currency includes paper currency, credit cards, and digital currency such as amazon pay, PayPal. All of this was controlled by banks and the government which is a centralized regulatory authority. But where the third party gets involved so there are cons too like a technical issue at the bank, the user’s account got hacked and the transfer list of said account is exceeded. this is why the future of currency lies with cryptocurrency
Now imagine the transaction between two people take place in a matter of few minutes by a simple halving bitcoin app and money is transferred without issue and limitlessly. their account cannot be hacked and there is no central point of failure. Now as we in 2018, this are 1600 cryptocurrency which is available in the market. There are some popular ones such as Bitcoin, Litecoin, Ethereum, Z-cash. Every single day a new cryptocurrency crops up.
So the question arises which cryptocurrency is? Well, it is a virtual currency with no physical form and in all fact, it does not involve any traction through banks and government institutions. So the benefit of cryptocurrency is not limit that how many units will it have as in the case of bitcoin hit 21million. You can easily verify the transfer of funds using the hashing algorithm that bitcoin uses. New units are added only if certain conditions are met. So what makes cryptocurrency so special? It operates with little to no transaction cost such as banks there will charge money for transactions. You have 24/7 access to your money. There are no limits on purchases and withdrawals. You have the freedom to use it anywhere around the globe. Moreover, international transactions are faster.
What is crypto in cryptocurrency? Cryptography is a method of using encryption and description to secure communication in the presence of third parties with ill intent. A computer uses computer algorithm such as like SHA256, the public key with act as the digital identity of the user and private key which act as a digital signature of the user which is hidden
Now let's talk about normal bitcoin transactions. First, the transaction details are entered with passes through a hashing algorithm having users private key which is used to uniquely identify the user to whom the amount is sent. This algorithm is then distributed across the network for people to verify. The people who check the data are called ‘miners' and now the traction is added to the blockchain where it can not be changed again.
Conclusion
The world is clearly divided in the case of cryptocurrency as there is a conflict between regulation and anonymity. People like Bill Gates are in support of this currency and economists are against it. Well, the states suggest that by the year 2030 the cryptocurrency would occupy the world 25% of the national currency which means people would start believing in crypto. It will be acceptable by merchants and customers and will be volatile in nature.