The issues linked to blockchain are currently incredibly hot and one of these is cryptocurrencies. We have opted to start a series of posts to describe topics like blockchain, cryptocurrency, intelligent contracts and ICOs in plain language. It might be difficult to describe the latest technology in basic terms, so I’ll attempt to articulate something that will transform people’s lives in the next few years completely: make it easy, cleverer and simpler. It’s really interesting to explain.
Having decided to apply Blockchain to MeetnGreetMe and issue our own signage, we feel responsible for both our beloved and low-tech MeetnGreeters (the same as all of us just several months ago). We have therefore released this series to tell our users about it. It was Blockchain and intelligent contracts that we explained already and now is time to understand what cryptocurrency is. So let’s go into the subject!
Then what’s the cryptocurrency, essentially?
You can see from the term itself that it relates to cryptography and currencies.
Let’s first describe the currencies that are natural. Currencies are a kind of ‘economic shield,’ which allows people to turn their efforts into things that are of worth that can later be transformed into commodities or other services.
Cryptography itself is the mechanism by which ordinary plain text is converted into unintelligible text and versa. Modern encryption addresses secrecy — nobody will understand documents, honesty — information will not be changed, authentication — sender and recipient can validate each other.
Crypto currency is a currency that combines the bits (like ordinary cash) in the digital world and relies on cryptography to protect transactions.
The alternative method for paying cash, credit cards and checks is Cryptocurrency. With technologies behind it, you can submit it without going to a third party such as a bank directly to others. This ensures that your social security or your credit score cannot be used as leverage and that you are reasonably pseudonymous. Cryptocurrencies are like virtual computer programmers, in other words. All transactions are registered. The transfers are packaged into a series of cryptographically signed blocks (thus the “crypt” currency), and for the purposes of the work of computing the cryptographic signature the customer is awarded a certain number of units of virtual money (and possibly transaction fees).
There are also spellbinding cases for that, as you might guess. If you are living in a foreign world, you can send back money to your family without heavy international fees. Händlers no longer have to think about payment theft or non-existent checks, because people will spend their money only.
The most famous cryptocurrency is, obviously, Bitcoin, which, with its exponential increase, has made people interested and has become the de facto norm for cryptocurrencies. I suggest that you get familiar with this post by Brian Yahn on hackernoon if you are looking to learn more about Bitcoin. There are many other important cryptocurrencies as well as Bitcoin, such as Ethereum (ETH), Litecoin (LTC), Dash and Ripple (XRP). But the main thing is that you can start your own cryptocurrency now! But first let’s sum up the main points:
All in all, crypto-monetary transfers are a different form of payment, which secures all the transactions and helps get rid of intermediaries, which are served by banks. The key feature of cryptocurrencies — authentication — is Blockchain technology — a computing network with the same copying of the archive and updating its records by means of a common mathematical agreement. In addition, it’s possible to generate your own crypto-currency and issue your own token thanks to one of the major benefits of Blockchain — smart contracts. Token is a kind of private cryptocurrency, where a company produces to control and self-govern its business model and allow its customers to engage with its goods, thereby helping all its stakeholders to distribute and share their incentives and benefits.
Statistical data on the 5-year trend of cryptocurrency
- The total market capitalization of cryptocurrency has grown from $19 billion in 2017 to $2.2 trillion in 2022.
- The price of Bitcoin, the most popular cryptocurrency, has grown from $900 in 2017 to $68,789 in 2022.
- The number of active cryptocurrency users has grown from 6 million in 2017 to 221 million in 2022.
- The number of cryptocurrency transactions has grown from 100 million in 2017 to 1.5 billion in 2022.
- These statistics show that cryptocurrency has seen significant growth in recent years. However, it is important to note that cryptocurrency is a volatile asset and its prices can fluctuate wildly. As such, it is important to do your research before investing in cryptocurrency.
- Here are some of the factors that have contributed to the growth of cryptocurrency:
- Increased adoption by businesses and institutions.
- Growing interest from retail investors.
- Development of new applications for cryptocurrency, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
- Increased regulation of cryptocurrency by governments around the world.
- It is still too early to say whether cryptocurrency will become a mainstream asset class. However, the growth of cryptocurrency in recent years suggests that it is a technology with the potential to disrupt the financial system.
Photos By: Quora, Financial Express, innotech today.
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