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An Overview on Cryptocurrency
Cryptocurrency is the buzzword at current times; it is a financial instrument, a virtual currency, and primarily a state-of-art technology. The currency comes in the form of a digital coin or token, and there are few instances of physical cryptocurrency in terms of credit cards. Still, we can say it is entirely intangible and one of the most valued possession.
Cryptocurrency is largely associated with cryptography, instrumental in creating and channelizing digital currencies, and handling their transactions across the system. The key features of cryptography develop necessary codes for various operations such as transactions and issuance of cryptocurrency under the decentralized system. The most valued feature that cryptocurrency offers is decentralized and free from governmental influence and control.
The virtual currency brings in exceptional transformation and instrumental in strengthening the economy across the globe. It is getting a mass appeal and undoubtedly the talk of the hour thanks to its exciting and productive features. Cryptocurrency doesn't have any centralized regulation or governmental control and functions through a network of computers. We can say cryptocurrency is the true replacement of conventional currency, and there are more than 2000 cryptocurrencies available.
Transacting cryptocurrency is like sending mail to your friend, which attracts a negligible fee and eradicates the mediators. The electronic money is capable enough to control its creation and protection by employing state-of-the-art technologies by protecting the identities.
Key Features of Cryptocurrency
Decentralization is a synonym for cryptocurrency; it is quite relevant to all cryptocurrency enthusiasts. So, if we get into the detail's decentralization is the primary feature that makes cryptocurrency more prevalent and talk of the hour.
Owing to the Blockchain technology, cryptocurrency is politically and architecturally decentralized.
There is no central or governmental figure or attributes that control the operations. The decentralization of cryptocurrency helps in minimizing the accidental failures in terms of transactions. moreover, a decentralized system is hard but to crack or manipulate due to the absence of vulnerable central points
Hence the decentralization feature rightly adds new features in the transformation of cryptocurrency as a global currency.
Cryptocurrencies don't have any physical existence; it is available only online, unlike fiat currencies. So, it reduces the counterfeit issues with paper currencies and coins.
The transactions of cryptocurrency are immutable, which means you can't reverse a transaction method once you click the button as it propels through the blockchain network.
Your identity is completely anonymous in cryptocurrency transactions, as the transactions materialize only through a unique set of public keys. There is no sign or name of the sender and receiver, which safeguards the identities.
Types of Cryptocurrency
Bitcoin & cryptocurrency are two inseparable entities as it is the first and original cryptocurrency created in 2009 under the pseudonym Satoshi Nakamoto. It uses Blockchain technology and allows users to opt for peer-to-peer transactions. Bitcoin safeguards all your transactions through competent algorithms within the Blockchain so anybody can see the transactions, but only the one who has a private key can decrypt the same.
Bitcoin is a decentralized currency and helps in anonymous transactions across the globe, unlike a bank and one of the most dominant cryptocurrencies over the years.
Tossed into the world of cryptocurrency in 2015, Ethereum is undoubtedly the second-largest virtual currency right after Bitcoin. It is an open-source platform based on Blockchain technology and first proposed by Vitalik Buterin in 2013. Ethereum offers a decentralized virtual machine called the Ethereum Virtual Machine (EVM), instrumental in executing various scripts of public nodes.
Ripple is another cryptocurrency that aims is cresting a fast and low-cost money transferring method being a global settlement network. Since 2012 ripple is popular as a cryptocurrency as well as an efficient digital payment network. It primarily focuses on transacting money on a larger scale rather than person-to-person transactions.
Sample Assignment on Cryptocurrency
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