The last decade has been quite successful for Cryptocurrencies. I mean, really, just who would have thought that Cryptocurrencies that started with nothing but a virtual existence will become a trillion-dollar industry.
Because Cryptocurrencies are not regulated by the Government, they are considered alternative currencies that exist outside of the bound of state monetary policies.
Today, in this article, I will talk about Cryptocurrency and how they have evolved. So, what are we waiting for? Let’s jump into it.
What Is Cryptocurrency?
Cryptocurrency is a decentralized digital currency that can be exchanged online for goods and services. Encouraged by such a concept, many companies have launched currencies of the same concept, which are called Tokens. And these tokens can be used to exchange products and services of their respective companies.
Think of Cryptocurrencies as arcade tokens. Then, perhaps you will have a better understanding of Cryptocurrencies.
Cryptocurrency works using Blockchain technology. Blockchain technology works on the public ledger principle. Hence, it ensures that all the transactions happening through the Blockchain network are safe and secure. To know more about Cryptocurrency, here is a Guide to cryptocurrency.
History Of Cryptocurrency
Many think that 2008 was the first year when the concept of Cryptocurrency was coined. But the history of Cryptocurrency can be traced back to 1983. This was the year when a Cryptographer named David Chaum developed the first virtual currency and made it eCash.
The same concept was followed by a different group and with DigiCash. This is where the fundamental concept of Cryptocurrency was born. Since the introduction of DigiCash, there was no significant development in the area of digital currency until a Japanese entity- Satoshi Nakamoto – entered the market.
Satoshi Nakamoto is the inventor of the first Cryptocurrency, Bitcoin. When Bitcoin was first launched in the market, the value of 1 Bitcoin was $0.0001. However, ten years have passed since then.
– Look at the same Bitcoin Today!
– It is now valued at $68,000.
The popularity of Bitcoin is so high that experts are predicting that it holds the potential to become one of the main currencies of the world.
How Cryptocurrency Works?
Cryptocurrency runs on Blockchain technology, but what exactly is Blockchain? Many people use Blockchain and Cryptocurrency inter-relatability. However, they are not.
Blockchain is a network that works on the principle of public ledger technology. Cryptocurrency is the product of Blockchain technology.
A Blockchain is simply a digital ledger of all the transactions happening on the network. And the best thing about this network is that it is decentralized. That means no single system controls the ledger.
Proponents of Blockchain technology say that the transactions happening over the network are transparent, thereby mitigating the risk of fraudulent activity.
When a Cryptocurrency transaction happens, they are recorded in the underlying blockchain. The transactions that happen are added to the chain in the form of Blocks. These blocks are then authenticated so that the network keeps on running.
All the transactions are then recorded on the public ledger. Anyone can go and see the details of the transactions.
Cryptocurrency is an exciting concept with the power to alter the global financial landscape. But while it is based on democratic principles, Cryptocurrency remains a technological work in progress.
With the current regulation conditions worldwide, you need to be extra careful while working with Cryptocurrency.
That’s it for this article. I know that this is not enough to give you a complete understanding of what Cryptocurrency is all about. However, I have still tried to incorporate as much information as possible.
If there is anything more you want to know, contact us. We will be happy to help you out.