What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
Cryptocurrencies are digital or virtual currencies. These currencies are decentralized and found on a blockchain. Every cryptocurrency had a specific blockchain which transactions are being stored. It all starts with the genesis block which is the first ever transaction to be made on any blockchain. This block shapes the way other blocks will be formed to make a blockchain.
Cryptocurrencies don’t exist physically. They can be accessed through the internet using a mobile phone or a computer. They are very secure and protected by cryptography.Cryptocurrency activities are determined and handled by the owners of the wallet. The blockchain network is based on a peer-to-peer system meaning only the two people doing the transaction are involved in making that transaction. There is no centralized system controlling how transactions are being done. When these transactions are done, they are stored on the blockchain digital ledger. Everyone can access this ledger and see the transaction being carried out on the blockchain.
Cryptocurrencies are fast and reliable. They can be accessed anywhere in the world any anytime. The cost of transactions are lower than the conventional banking system.The lack of central authority in trading cryptocurrencies makes interference and manipulation impossible. There is total transparency on the blockchain so the likability of fraud to exist is almost zero.
Cryptography is the main security for cryptocurrencies. It generates the private and public keys to be used on doing transactions. The public key serves as the address to the wallet while the private key is used to validate transactions. Since cryptography works on security by anonymity, all transactions are sent as coded messages. Only the private key can decrypt and encrypted crypto token.
For example if @stream4u sends me some bitcoin, without my private key I cannot claim the coins.
The public and private key should be kept safest at all times because if you loose them, you loose your account/wallet. Or rather if anyone finds your private key, they have full access to all your transactions.With all these various cryptocurrencies exist today. There are hundreds of them but the first ever cryptocurrency to exist in the world is the BITCOIN. This coin was creat by Satoshi Nakamoto in 2009. No one know his/her real identity and some people even believe the name everyone knows is just an alias.
Till today bitcoin remains the top ranking cryptocurrency in the world.
In the screenshot we can see bitcoin at #1 and it followed by ethereum and binance coin at the #2 and #3 respectively. The statistics about all cryptocurrencies can me gotten from https://coinmarketcap.com/. The more popularity and the more people use a certain cryptocurrency, the more it moves up the ranks.
Cryptocurrencies were made to have a system better than the conventional banking system. The banks can close but the crypto market never closes hence can be assessed at anytime.
- Cryptocurrencies are preferable to use for transactions due to its low transaction fees and it’s maximum security. Transaction can be made at anytime and anywhere so there is comfortability. The fact that there is transparency also makes it trustworthy. No personal information needs to be shared since the keys do all the work as address and claiming of tokens.
Some advantages of cryptocurrency include;
- The security provided by the cryptographic keys.
- The privacy gotten from anonymity through the usage of just the keys for transactions.
- The fact that it is decentralized puts the power in the hands of the users.
- Reliability in the fact that it can be used anywhere at anytime.
Some disadvantages may include;
- The fact that if you loose your keys you loose your wallet.
- A mistake of sending crypto to the wrong address makes it impossible to recover.
- If we are scammed, we cannot identify the perpetrators.
Cryptocurrencies are getting the attention of many people everyday. Many countries have legalized it. Up till now it has been doing a great job and working just fine.
But in the future I would like to see that all nations legalize cryptocurrencies. It will be better if many more people can use it as a means of exchange and settlement in our everyday needs.
In the future I will like to see that cryptocurrency maybe be as equal in usage as how physical cash is.
I want to see that my favorite cryptocurrency which is the steem gets into the top ranks.
Doing this task has opened my mind to how cryptocurrency is important now and in the future. With all this information I can render someone a rundown of how cryptocurrency functions.
Thanks to the tutorial post by Professor @stream4u that really helped me a lot in doing this research and doing my own post about cryptocurrencies.
