What is Cryptocurrency
- August 05, 2017
Getting a detailed idea about what is cryptocurrency
Cryptocurrency is a decentralized payment system which allows individuals to send or receive currency over the internet. The best thing about this new concept is that you can carry out transactions without the need of any trusted third party such as a financial institution or bank. All transactions over these modes are free or very cheap. These payments are all pseudo anonymous too. There are various benefits of using cryptocurrency in present day time, being decentralized makes it easy and useful for many users. This means there is no single authority controlling this currency. All these features make this process incredibly resilient network, and no one can every reverse or change any of the transactions.
How is it different?
Cryptocurrency comes with high level of anonymity which makes it hard to trace transactions. It is not impossible, but it is almost impractical in most cases. This is a currency which is associated with the internet and uses the concept of cryptography. This idea is all about converting legible information into some uncrackable code to track transfers as well as purchase online. This concept was born of the need of secure communication, and with passing time it evolved. In this digital era, this concept allows every individual to send or receive money online, in few seconds time. Isn’t it amazing?
What is the first Cryptocurrency?
The first of its kind was Bitcoin, and it was created way back in the year 2009. There has been a huge demand of cryptocurrencies in the past, and there are around 900 available online. This concept uses the decentralized technology and allows the user to make payments or store money without the need of using the name. With this system you don’t have to go through a bank, all transactions can be made from the ease of any gadgets. Units are created through a process named mining, and it involves computer power to solve all complicated problems, on successful completion you generate coins. Apart from that you can buy currencies from brokers, store it and spend using suitable wallets.
Knowing the most common cryptocurrencies in the business
- Bitcoin was the first and most widely traded digital exchange till date. This currency was developed in the year 2009 by Satoshi Nakamoto. As of July 2017, the market capitalization of it is around $45 billion.
- Ethereum is another currency which is the second most valuable and widely used digital exchange in the present, day time. At the moment the market capitalization of it is around $18 billion.
- Ripple is another popular ledger system which was found way back in the year 1912. It can be used to track all kinds of transactions. Many popular financial institutes around the globe are using it and have a market capitalization of around $6.3 billion.
- Litecoin is another popular digital exchange like Bitcoin which is seen making news in many places. This currency is known for its faster payments and processes to allow more number of transactions. The present capitalization of this currency is around $2.1 billion.