A Wealth of Knowledge
What is cryptocurrency?
What really comes to your mind when you hear the word "cryptocurrency"?............Well, let us start off by using simple logic. Remember back in primary school when your English teacher told you that when you do not understand a word you should break it into different words? For example, let us take a random word, say "coexist".....So first you can break this down into two words: "co" and "exist". "Co" being a prefix, which means two parties joining ventures/mutually. Whereas the word "exist" means to live. Now one knows or at least has an idea. of what the word "coexist" means. So if one talks of a cryptocurrency, first of all, one knows it is a currency, but what type of currency though? well once again, breaking the word into two or three parts. Firstly, it is an intangible currency, in which transactions are done through blockchain, which is a system of information and seeks to cut out the intermediary. So when one transact with another. The funds being transferred go straight to the other without an intermediary i.e the banks. Interesting stuff huh?
Derived from Greek κρυπτό/kryptós which means "hidden, secret"; and graphein which is "writing" in greek, or logia which then means to "study", respectively. is the practice and study of techniques for secure communication in the presence of third parties called adversaries. More generally, cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages; various aspects in information security such as data confidentiality, data integrity, authentication, and non-repudiation are central to modern cryptography. Modern cryptography exists at the intersection of the disciplines of mathematics, computer science, electrical engineering, communication science, and physics. Applications of cryptography include electronic commerce, chip-based payment cards, digital currencies, computer passwords, and military communications.
Gold is always valuable because it's desirable and limited in quantity. There's only so much gold in existence and sure you can take more out of the ground. But sure the more time passes the harder and more expensive it is to find and to mine gold. The same way the value of cryptocurrencies such as Bitcoin, lies in the fact that they are desirable and limited in quantity. Bitcoins are desirable because they facilitate transaction without the middlemen such as banks or PayPal and there are lots of people willing to accept them. Other cryptocurrencies such as Litecoin are less used for transactions, therefore, less desirable. cryptocurrencies are limited in quantity coz these usually a cap on how many can be mined. For Bitcoin it is 21million it varies from cryptocurrency to cryptocurrency. Cryptography is used to secure transactions and create new coins. Which are given as rewards to people who solve complex math problems. Simply put, people invest processing power and electricity to receive coins and just like with gold, mining gets harder and harder as time passes. Just as a brief recap. Two things make cryptocurrencies valuable desirability and the limited quantity. Bitcoin is currently the leader. the gold of the cryptocurrency world. Other currencies are runners-up like silver or copper.
Say there's a coin, that is currently worth hundreds of US dollars but is coin is not made up of gold, platform or any precious metal. In fact, it is not the kind of coin that you can hold it in your hand or stick in a piggy bank. It is a digital currency which means it only exists in electronically. cryptocurrencies do not work like most money. It is not attached to a state or government so it does have a central issuing authority or regulatory body. Basically, there is no organization deciding when to make more bitcoins figuring how many were produced or keeping track of where they are or investigation fraud. So how do cryptocurrencies work as a currency. They would not exist without a whole network of people and a little-called cryptography. Cryptocurrencies are fully digital and can be exchanged between computers in a worldwide network of people in a little thing called peer to peer networks.The whole point of most peer to peer networks is sharing stuff like letting people make copies of super illegal music.
Today cryptocurrencies have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.
Bitcoin, crafted in 2009, was the early decentralized cryptocurrency. As next, countless cryptocurrencies possess been created. These are oftentimes referred to as "altcoins", as a blend of bitcoin alternative. Bitcoin and its derivatives use decentralized manipulation as challenged to centralized electronic money/central investment systems. The decentralized manipulation is connected to the use of bitcoin's blockchain deal database in the act of a distributed ledger.
Litecoin was the most popular cryptocurrency after Bitcoin as of 2015 with one coin valued atabout $1.50 USD. Recently, Litecoin has traded between $60 and $95. Litecoin falls under the "altcoins" subset of cryptocurrencies. Much like Bitcoin, it is transferred as well as created virtually using encryption. once again, much like Bitcoin, Litecoin’s new coins are created through a process known as “mining. Transactions are tracked on a public ledger. The primary difference amongst Bitcoin and Litecoin is that Litecoin is created for speed. This then makes it ideal for rapid transactions i.e payments.
Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.