Cryptocurrency is a digital currency that you can send or receive through the internet. It represents a value that is not assigned or issued by a government or a central bank but is accepted by people who are the part of the network for exchanging goods and services across the globe. It uses cryptography to verify and secure transactions and they are seen by many as the harbinger of a better economy.

Cryptocurrencies aimed at addressing the numerous constrains that plague the traditional payment structure which is too centralized. Every purchase we make should be approved by a third party and it requires a good amount of charge that adds up to considerable amount of money over time.

Sometimes the transactions are extremely slow and finally these institutions need to record a good amount of personal data which are vulnerable to cyber attacks. Traditional banks charge fees to process monetary transactions and can even freeze your account and refuse to release your money if they choose to. But cryptocurrencies are designed to be transferred or exchanged over the internet from person to person, person to business or from business to business without going through banks.

The first cryptocurrency named Bitcoin was created to tackle these issues innovatively and effectively. It uses a peer to peer payment network where the onus to maintain the trusted ledger transaction is lies on every user in the network rather than on one central entity. Moreover the absence of any central body results in an ecosystem where the cost involved is minimal the need personal data is non requisite.

Bitcoin solves the issue of payments in particular and since 2009, more than 1400 cryptocurrencies have emerged many of them carrying out different functions in different blockchain structure.

The blockchain technology over which the cryptocurrency operates is the most iconic and significant thing that was simultaneously innovated along with cryptocurrency. Investors buy into them because they believe in the products and projects that they underpin.

Cryptocurrencies are stored in digital wallets, cold storage wallets or a cloud wallet. They can be traded on exclusive digital currency exchange against other currencies like the US dollar, EURO and many others.

These cryptocurrencies are generated over the internet by anybody who could run the mining application. Mining involves a certain amount of work that receives rewards. This work is carried out by solving complex mathematical problems or simultaneously verifying problems on the network.

When two users exchange the currency over the cryptocurrency network other users record and verify the transactions and on completion of the block they are rewarded with newly generated coins of a particular cryptocurrency from the network.

Thousands of merchants now accept bitcoins and many other cryptocurrencies due to their robust, effective and innovative technological core. Presently, bitcoins are the most widely acceptable form of cryptocurrencies.

If the market trends continue to be bullish and investors continue to cheer cryptocurrencies in the long run, there is a very good chance that there may come a time when blockchain based economies might become a reality as blockchain based economy propelled by cryptocurrencies could be beneficial for a number of reasons.

This was a guest post by our friends at MrBTC.org – Please checkout their infographic all about the famous Crypto women and their contribution to this industry:

crypto women
Courtesy of: MrBTC.org

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