September 23, 2020
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Cryptocurrency

What is Cryptocurrency?

What is Cryptocurrency?

The Cryptocurrency is a digital and virtual currency. Cryptography is used to secure and verify transactions as well as it is also used to control the creation of new units of a particular Cryptocurrency. Cryptocurrency is generally not issued by any central authority, providing them theoretically free to government interference and manipulate. Because of the decentralized medium allows them to exit out of control of the government and central authorities.

History of Cryptocurrency

The first block-chain server-based cryptocurrency was Bitcoin, which remains the most popular and most valuable cryptocurrency ever. Now a day we see thousands of different cryptocurrencies which has a different type of various functions and specification. Some the cryptocurrency is the clones of Bitcoin, while some of the new currencies built from the scratch code.

In early 2009, an individual or group of programmer under a direction given by “SATOSHI NAKAMOTO” developed Bitcoin. Satoshi describes a bitcoin system work as a ‘peer-to-peer electronic cash system.’ It is a completely decentralized system meaning there is no servers and no central controlling authority involves. There simple concept made by a developer that defines a peer-to-peer file-sharing system. If we talk about Payment network status than there is one of the most problems that there is fraud technique of spending the same amount twice. The solution was a trusted third party by a central server which keep your records of the balances and transactions. This method keeps your data secured by authority Which is controlling your funds and personal details without leaking important information.

How Cryptocurrency Works

As we discuss about that whole system depends upon digital assets in which there is no need of pen-paper in it. If you want to pay someone through your computer with internet or in simple words you transfer money to someone, then you can easily do it. But if you look Cryptocurrency carefully you, realize that there two important things, matter one is  Currency and another one is Encryption (Security), which means safe money. In this platform, you can safely transfer money from one place to another without informing government and central authority.

Types of Cryptocurrency

When Cryptocurrency launched in the market there are only one or two companies that used to make crypto coins but today there are more than 1000 of companies that are making Cryptocurrency.

Some of the Cryptocurrency list below:

  • Bitcoin (2009)
  • Ripple (2013)
  • Litecoin (2011)
  • Ethereum (2013)
  • Auroracoin (2014)
  • Peercoin (2012)
  • Dogecoin (2013)
  • Namecoin (2011)
  • Mastercoin (2013)
  • Primecoin (2013)

Some of the Top 3 Cryptocurrency

Here we give information of most used Cryptocurrency

  1. Bitcoin (BTC)

Bitcoin was a first cryptocurrency which was made by Satoshi Nakamoto in 2009. It is a digital currency which was used to buy goods and transaction. It is a decentralized currency which means there is not control of government and central authority has any hand on it of buying bitcoin. If we talk about, the value of bitcoin if we convert in Indian currency than its price around 7 Lakhs is equal to 1 Bitcoin. You can see the importance of bitcoin value today.

Current Market CAP VALUE: $1,68,84,67,97,059 USD    

Price: $9,184.50

2. Ethereum (ETH)

This Cryptocurrency is best and you can invest in it without thinking or if you want to buy any item by this, then you can buy it, that’s why we are putting it at top of the list.

Current Market CAP VALUE: $23,299,089,753 USD

Price:  $209.82

3. Litecoin (LTC)

Litecoin is also a decentralized peer-to-peer currency that has open-source software released under the MIT/X11

license developed by Charlie Lee in October 13, 2011, which was previously Google employee. It is the fork of the Bitcoin Core client, Litecoin has big thinking behind its creation and many of its feature are similar like Bitcoin. Its differing block generation 4 times(2.5minutes) less than Bitcoin. So that’s why Litecoin transaction transfer very quickly. It is based on Scrypt algorithm which is used to perform mining.

Current Market CAP VALUE: $2,862,537,562 USD

Price: $44.18 USD

Advantages of Cryptocurrency

  • In Cryptocurrency chances of fraud is very less.
  • Cryptocurrency is more secure as we compare to normal digital payments platform.
  • In this transfer, charges are very low. Suppose you have to pay a lot of money, then you can transfer yourself only through Cryptocurrency. In this, the transaction fee is also very low if we compare to credit card, so it is used mostly.
  • In this chance of account, hacking is very less. Because of special type of security system used.

Disadvantages of Cryptocurrency

  • The biggest disadvantage of cryptocurrency is that if you do payment to someone one time or a payment is done by a mistake, than you cannot even reverse that payment process.
  • If your Wallet Id lost or the company blocked you wallet than you not able to complain it

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