Cryptocurrency, is an very interesting concept as it is revolutionizing our way for online transactions . And, one may not help to wonder how and why this Cryptocurrency was started.
Since, our world is coming closer, you have to make payments from India to Philippines, you have to do is online bank transfer. Bank is the server right.. ? Been a service provider, it will charge you to transfer and receive money, how about if we cut this middleman and make the transaction smooth? This led to invention of digital currency â€“ a unit as medium of exchange.
So, Cryptography is basically referred to a process of converting legible information into complex code to track purchases and transfers. Crypto- Currency is the currency associated with the internet that uses cryptography. It has further evolved in the digital era with elements of intricate equations and technology advancement to become a way to secure communications, information and money online. While Bitcoin is the first Popular cryptocurrency, everyone has heard about there is many crypto currency that are traded like Ripple (XPR ), Ethereum (ETH), IOTA (MIOTA) that are also increasingly getting popular.
Cryptocurrencies are like digital alternate to government-issued hard currencies and can be used in online marketplaces to buy everything. Although in India, Crypto-currency is gaining popularity for Online trading.
Now in physical world, we have governor to decide the circulation amount but in digital currency, who can stop itâ€™s duplication, itâ€™s circulation. (This led creation of decentralized process called Blockchain, that we will read in our next blog. )
Few interesting aspects
â€¢ Intangible: It is all virtual currency, itâ€™s transfer and address. There will no one owning that address
â€¢ Irreversible: Since, Cryptocurrencies are merely entities of transaction, they are codes, and the money send cannot be reversed under any circumstances.
â€¢ 100% Save & Secure Transactions â€“ Since itâ€™s Cryptography, there is no doubt of informational beach or amount getting lost.
â€¢ Limited Supply â€“ Say Bitcoin are mined with software. Crypto currency is made with algorithm there are finite set of equations only . This implies that currency is finite & we can calculate the total monetary supply that will be available in future in the present day.
Since Crypto currencies are unique and valuable, people are investing on it. Many countries have made Bitcoins legal also, India is on itâ€™s way to accept this disruptive yet revolutionizing world.