Bitcoin, Cryptocurrencies, & Public chains - Steemit Crypto Academy Season 5 - Homework Post for Task 5.

(1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?

Globally, there is a great change of position when it comes to currency. The world is moving towards innovation technology called decentralisation, however, the digital money used is known as cryptocurrency. Cryptocurrency has now become part of our day to day lives.

The word cryptocurrencies are not paper money or currency we can see with our physical eyes. Instead, cryptocurrencies are digital money that exists specifically on the network via a decentralized mechanism called the blockchain. The blockchain remains the backbone of all cryptocurrencies. However, the blockchain majorly is used to access cryptocurrency.

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Just as I said that cryptocurrencies have become the day to day lives regardless of it not existing physically in the world. However, it is a part of a money system, but not like diamond 💎, gold, or silver, that exist physically. The cryptocurrency is full of volatility which means there are price fluctuations. Diamond, gold or silver price depends on the material they are made of. Moreover, cryptocurrencies are dependent on peoples' supply and demand.

The more people demand a specific cryptocurrency, the higher the value will rise, similarly, the more the supply of the cryptocurrency, the more the price falls.

The king of all cryptocurrencies is known as Bitcoin. It was the first cryptocurrency to be created and has dominated other currencies. However, over a hundred different currencies are existing known as Altcoins. The first person to innovate the idea of cryptocurrency was Satoshi Nakamoto, who brought the idea of digital money to eliminate the third party, and hopefully, lots of individuals have followed his footsteps to create more coins.

Let's check out some of the features of cryptocurrency.

Permissionless

A trader who is into cryptocurrencies doesn't require permission from any individual before investing or trading on them which means we can invest in cryptocurrency any time, anywhere provided we have the devices needed.

It doesn't require an office

Also, it doesn't require the use of an office to start up cryptocurrencies investment. It only requires the user to get gadgets like laptops, smartphones, and other devices to start up cryptocurrencies. That's it needs a connection to the internet via a computer or smartphone to access it.

Elimination of Third Parties

Just as the involvement of the third party in our local banks, the cryptocurrency operate in another realm whereby there is the elimination of third parties(middlemen).

Finally, it is decentralized which means it is not owned or controlled by a central server. The cryptocurrency a kept in a wallet that is encrypted with keys(private & posting keys), hence, this makes the security measure to be high as such prevent stealing of funds from the wallet.

How does it work

The cryptocurrency relies on the blockchain. The blockchain is the backbone of the cryptocurrency and each transaction is known as a block, however, each of the blocks is coded which can't be altered and is unrepeatable. This code is packed in together with complete data on the user (sender and receiver) of the exchange, however, this entails that all the record of all the transactions updated is held by currency user most especially the holders.

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Most users also buy currencies from decentralized or centralized exchanges as well as from brokers, after which they store them using cryptographic wallets. Now, the keys (private or posting) allow you to transfer data (coins) from one individual to another without a trusted middleman.

For instance,

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Suppose Armstrong sold 50TRX to Favour and sent the 50TRX to Favour's address, the coins are locked or encrypted on the public key and the transfer of the ownership is recorded on the ledger of the network. Therefore, for Favour to unlock or decrypt these coins, she will use her private key. So, to confirm the transaction, she will input her private key, as such, we can say the transaction is successful which indicates her details are correct.sr

How would you like to see cryptocurrency in the future?

Cryptocurrency is growing every day and lots of people are still interested in them daily depending on it as their business. However, I believe that, in the future, cryptocurrencies will become more valuable in our society as our day to day life. Most countries are against it like my country, Nigeria 🇳🇬, however, some have legalized them as a means of payment.

With the current move of cryptocurrency, I believe most companies and businesses soon will accept them as a means of using them to pay their employees, while most sports organisations will use it as means of payment of tickets. However, It would be great to see that happen.

Just as I said I would like in the future cryptocurrencies to be part of our daily lives just as our paper(physical) money. It would also be delightful to see people with cryptocurrency debit cards which will be used as payment. For instance, when someone buys something from a shop will use these debit cards and make payments.

Although the future depends on the government if the government could accept it as a possible currency of exchange as such makes it more valuable. However, the more interest or attention the people put in the cryptocurrencies and accept them, the high the probability the governments will look towards it and accept it.

The government believes the cryptocurrency will change things negatively but the louder the voice of the people about digital money, the high tendency will enable the government to study the prospect of authorizing cryptocurrencies as currencies of exchange.

Honestly, It would be am wonderful to see cryptocurrencies most especially Steem become one of the vastly traded cryptocurrencies in the future which means each steemians will be a millionaire, then they will appreciate the idea of the @club5050 initiated by the platform.

CONCLUSION

Globally, cryptocurrencies are trending as such gaining ground which means it has a great future. With the volume of cryptocurrencies such as BTC, and so on in the market, it shows that lots of people are into it, and most people are still interested in them daily. Perhaps, it is ideal for you to understand how it works before investing in them because it is characterized by volatility.