What does “Cryptocurrency” Mean ?

Published on: 01/10/18 3:41 PM

What does “Cryptocurrency” Mean ?

A cryptocurrency is a form of exchange medium that uses digital technology. The currency is meant to be safer than the regular exchange of medium, and in most cases it is unknown. The specific technology that is involved in the making of the cryptocurrency is the Cryptography. Cryptography is the process of tracking purchases and transfers using conversion of precise information that has been created into a code that can be barely cracked.

The inception of cryptography happened during the second world. The main aim of cryptography was to secure communication during the Second World War era. The evolution of cryptocurrency has however been inevitable as the digital era has come of age. It has evolved to become a way of securing information, communication, and money through online platforms. It has been made possible through computer science and mathematical theories.

Bitcoin was the first creation of the cryptocurrency. It was launched in 2009 and remains the best-decentralized form of cryptocurrency. However, in the years that have followed, many cryptocurrencies have come up. These alternatives to Bitcoins are popularly referred to as altcoins as they are both bitcoins and options of bitcoins. The process in which the decentralized digital money is transacted between two people is commonly referred to as mining.

The decentralization method of Bitcoin to enable its control revolves around the use of its blockchain transaction in the database in regards to the distributed ledger. The recent boom of the Bitcoin puts on ahead of other forms of digital money with the valuation of $10,000 as per November 2017.

The cryptocurrency works by anonymity where the owners of these digital coins keep them in secretly coded wallets that are extremely hard to decode. The digital-coin holder’s identification is then placed in an encrypted place that only they have control over. But the identity is kept a secret. The owner of the coin holds a pseudonymity identity over the currency thus giving it its value.

Using proof -of -work system, cryptocurrencies are hard to work but easy to verify through computerized methods. The system requires a lot of computing power to encrypt but of what makes the cryptocurrency attain its value. The currency is available on an open source platform which means primarily anyone can use the currency and join the network through creating API’s which are free of charge.

The cryptocurrency works from a concept of having value like the US dollar. Proof-of-stake is the method of validating the coins to realize their actual value, the process of ‘mining ‘the coins also gives them value; From forex broker reviews, Bitcoin is the begging of cryptocurrency, and the future looks bright in the trading market for it. Even trusted fx brokers have come up in support of Bitcoin as they term it as the future of safe trading