Cryptocurrency: The Changing Dimensions

Cryptocurrency, a new keyword to hear for some people, however known worldwide is a type of digital currency, providing secure transactions, without the fear of being corrupted. It is providing rapid market for investors in big firms.

This concept was born very earlier but came into real existence from 2016. No big firms existed then who didn’t know the concept but the limited knowledge screwed. Not much people know the importance, but big firms, banks, governments and companies are aware of it.

The definition of Cryptocurrency can be reached by defining the currency, the notes and coins. If we want to make a change in account, it is only possible in two cases. Either when the currency you are holding is owned by you and you are depositing it or you own that account and you are going to withdraw some.

The thing we are doing is making transactions with a purpose of bringing about changes in already created database and for that some authentication is required. Noting that authentication is needed for making changes and databases.

For an example, the account details are not available to view publicly, while the new concept focuses on providing the databases publicly.

Bitcoin, an open source software developed on 9 Jan,2009, is the first decentralized cryptocurrency. Satoshi Nakamoto, the unknown inventor of bitcoin, centralized his goal to create something between cash and digital cash, a new electronic system to prevent multi-spending. The speciality it had that it was the first such successful attempt.

A wide or we can say, global network, manages databases with bitcoin transactions by implementing blockchains.

A new term Blockchain is seen, so to have some idea, it allows digital information to be distributed not copied, somewhat leading in emerging of a new type of internet. Anyone who has access to the database can make changes one desires to.

The records are public, can be verified by anyone, accessed by anyone on the network, also keeping in mind the security of the data. It is an incorruptible version that doesn’t exist to be hacked, so there are no risks of damages to anyone’s account as in real bank accounts.

Cryptocurrency revolves around confirmation. Until any payment done is confirmed, it is considered unsuccessful and you have the threat to be deceived. As soon as it is confirmed, we are relieved. Same is the concept with the bitcoin.

And to do the task miners are into existence. Only these people can confirm transactions. They take up the data to be updated, spread in the network, and after that, each node adds it to database. Not more than 2 minutes are needed to finish up transactions. And no transaction is reversible. In return they get rewards in the form of bitcoins known as block rewards.

Miners verify the transactions, add to the Blockchain and new bitcoins are released. Anyone with suitable hardware and internet access can do mining. They have to solve a computationally difficult puzzle. The one who solves the puzzle first gets the chance to place the next transaction that is the next block and claim the rewards.

Difficulty of puzzle changes keeping the rate of block discovery constant.

Many open sources have come into existence. An open source blockchain project is Ethereum, developed to leverage blockchains on a large scale. Sharing economies are very common in use and their success is on hand like Uber. Some open up with a good start but are outdated very soon or some are the part of competition.

 

Cryptocurrency is followed not implemented, and this statement is sufficient to show its much wider use nowadays.