CRYPTOCURRENCY EXPLAINED!

Cryptocurrency is a digitalized means of rendering transaction (means of exchange) that uses a very powerful decentralized means of control to safeguard financial transactions. This decentralized control means of each cryptocurrency works via a system called blockchain that serves as a database for all transactions.

By - June 20, 2019
various cryptocurrencies

Introduction

Over the years cryptocurrency has grown to be worldly accepted by forex trading enthusiast. 1983 was when it all began after Sir David Chaun first introduced the number one electronic money called the e-cash. The system quickly became popular amongst economists and this was how he got he’s confident and then decided to broaden the system in 1995 by enacting it via Digicash an early form of cryptographic electronic payments that allows the public to make transactions with banks. Little do they know that this system is untraceable by the bank or government or any other third parties.  

Shortly afterward, in 1998 Wei Dai introduced a system named b-money, known as an anonymous distributed electronic cash system. Ever since then numerous other cryptocurrencies were developed including Nick Szabo’s bitGold (a currency system based on proof of work).

Nevertheless, in 2009 we witness a new revolution of a cryptocurrency called bitcoin the first decentralized cryptographic system that was developed by Satoshi Nakamoto. Also in 2011, Namecoin and litecoin were then introduced and so many more has followed down that part.

Breaking down Cryptocurrency

Cryptocurrency is a digitalized means of rendering transaction (means of exchange) that uses a very powerful decentralized means of control to safeguard financial transactions. This decentralized control means of each cryptocurrency works via a system called blockchain that serves as a database for all transactions.

The word “Crypto” means concealed secrets, which we can then translate to as a system created mainly to secure all cryptographic techniques and algorithms, including elliptical curve encryption, public-private key pairs, and hashing functions.

Bitcoin is one first widely acceptable cryptocurrency which was introduced back in 2009 under the group pseudonym. Thereafter, bitcoin has turned out to be one of the most demanded cryptocurrencies in the market selling over 17.53 million bitcoin all around the universe with a total value of $63 billion. As at when bitcoin first made the public it was less than a dollar bill, nonetheless it has shown a massive boost in its value, selling at 1btc to $8177 in 2019 (although the price of bitcoin is still unstable, so we can’t give the exact value which is going to be tomorrow).

Benefit of Cryptocurrency

Technology has played a major role in the economy today by making day-to-day activities of the public much easier. Since the introduction of cryptocurrency trading and financial transactions has been effortless, transactions can now be made between two parties with just one-click without the need for bank interference or other financial companies. Cryptocurrency transactions use two different keys to carry out safe and secure undertakings which are private and public keys.

All modern cryptocurrency has a blockchain technology that safely keeps all online ledger of all transactions of the user which provides maximum security of all deals made using the cryptocurrency. This system all minimizes threats from hackers.

Cryptocurrency users can preserve their coins because the currency has no risk of inflation.

Verdict

As a forex trading enthusiast, the introduction of cryptocurrency to the market has been a major boost and advancement in e-market and also make barter more convenient and easy to accomplish. Although the cryptocurrency like bitcoin keeps fluctuating, it has been a dominant force in the financial world by proven to be the strongest currencies in the market. Cryptocurrency main purpose is to substitute the banking system and other incorporate financial systems.

 

  

 

Leave a Comment