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What Is Cryptocurrency; Blockchain Technology by cryptogeek12(m): 10:14am On Aug 30, 2018 |
The term cryptocurrency is made up of two keywords namely crypto meaning hidden or secret while currency which is a term used also as money..Adding these two words, cryptocurrency refers to hidden or secretmoney..But cryptocurrency is mich more than a hidden-money.Infact that not a suitable way to define cryptocurrency.There are so many definition to cryptocurrency,But as a beginner i would say cryptocurrency refers to internet money..Just as the world is revolutionalizing everyday,there have been a increasing demands on how to solve issues like: *Speed of transaction *no government regulation *A system where you can control your money and etc.. Which are one of the attribute of cryptocurrency.. To understand cryptocurrency fully,you have to know first what a reserved currency is; What is a reserved currency In a beginners language,a reserved currency is a currency which is generally accepted or used as transaction unit globally..As of writing,the us dollars is the most generally accepted currency worldwide.. Could cryptocurrency be a reserved currency I would say yes but it might require the agreement of other countries.. Unlike the paper money e.g us dollars,pounds,euros and so on which are controlled by the government.. cryptocurrency is controlled by no one which is one of its advantage.. Who controls the price of the crypto market The first cryptocurrency known as bitcoin was priced at $0.5..As of writing the price of one bitcoin is priced at more than $6000 as of writing..which brings us to the question on who controls the price.. The price of cryptocurrency depends on: 1.How much have been invested on that coin and how much of that coin is been distributed.. 2.The demands for it to solve technical problems. 3.The actions of government policies and companies to regulate the price.. 4.Solely on how much of the coin you are storing.. 5.And how much of the coins is been traded.. How does cryptocurrency works Cryptocurrency makes use of technology called blockchain..In a nutshell,permit me to explain the blockchain network. What is Blockchain technology A blockchain is an open, decentralized ledger that can record transactions between two parties efficiently in a verifiable and permanent way without the need for a central authority. The key qualities of this distributed ledger is a time-stamped record of the transaction, speed, transparency (ledger is public), and decentralization (the ledger exists on the network and can be validated by computers in the network, often referred to as nodes). Blockchain technology has been hailed as revolutionary and can dramatically lower cost, increase speed, and present transparency of all transactions. Take, for instance, a typical stock purchase or bank wire transaction. The transaction can be executed in minutes but the settlement — the ownership transfer of the stock or funds — takes a few business days. This is because the parties have no access to each other ledgers and therefore can not automatically verify that the assets are in fact owned and can be transferred. A number of intermediaries (i.e. banks, escrow, credit card companies) act as guarantors of assets as the transaction is verified and the ledgers are individually updated. On the other hand, blockchain transactions reside on a public ledger and are not controlled by a central authority. Decentralizing control removes the need for intermediaries and middle-men. As a result, these transactions can be executed and settled between both parties in minute with verification that is transparent, public, and validated by the network itself. Whether an emergency or just a normal transaction, this is particularly advantageous where the transfer and reciept of funds are required immediately. While this is just one example, these benefits will collectively alter existing business processes, disrupt industries, and create new business models; similarly as the Internet did during the digital revolution. Governments, financial institutions, non-profits, etc. are going to experience a radical change as entrepreneurs seek alternative solutions to disrupt and relinquish control of single governing bodies. Benefit of Decentralization: 1.Consensus — decentralization ensures a distributed model where the participants are the collective owners and decision makers of the network or organization. Thus ruling out any single authority, leader, or ruler. 2.Collusion resistance — decentralized systems protect collusion and prevent participants to act in ways that benefit them at the expense of others in the network or organization (as opposed to the central leadership of corporations and governments that collude in ways that benefit themselves but harm the citizens, customers, employees, and the general public. 3.Fault tolerance and attack resistance — decentralized systems are more expensive to attack, destroy, manipulate, or fail because they lack a single point of failure. 4:cheat-proof:which is one of the advantage of blockchain while we are still early, we are already experiencing the benefits of this technology and its principles. For example, Bitcoin itself has carved itself a place as a financial asset built upon blockchain technology. Thus resulting in a millions of transactions the crypto market a day and achieving a market cap of approximately more than $200bn as at the time of this writing. I truly believe that we are only on the cusp of a new revolution that will be driven by blockchain technology and decentralization. Therefore,i urge you to learn more about. While still early, we are already experiencing the benefits of this technology and its principles. For example, Bitcoin itself has carved itself a place as a financial asset built upon blockchain technology. Thus resulting in a millions of transactions a day and achieving a market cap of approximately more than $200bn as at the time of this writing. I truly believe that we are only on the cusp of a new revolution that will be driven by blockchain technology and decentralization. Therefore,i urge you to learn more about how to leverage it to make impact,rather than making it have impact on you. In due time,im going to highlight some important terms in cryptocurrency..I hope you enjoyed reading these article...Bye for now. source:https://crypto4beginners..com/2018/08/beginners-guidewhat-is-cryptocurrency.html |
Re: What Is Cryptocurrency; Blockchain Technology by cryptogeek12(m): 1:52pm On Aug 30, 2018 |
Get started with cryptocurrency now.. Cryptocurrency is the future.. visit crypto4beginners..com for more info 1 Like |
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