Nowadays, Cryptocurrencies have turned into a global phenomenon most people aware of. It is hard to find a multinational firm, a major bank, a software development organization, or any government that did not explore cryptocurrencies. However, far off the research, and press releases a majority of actors including consultancies, app developers, bankers, and even scientists able to gather limited knowledge about these digital currencies.
In this writing guide, we would like to share anything and everything about cryptocurrency that people need to understand for adopting a clear conception.
- Learning Basics 101 about Cryptocurrency
- Where Cryptocurrency has originated?
- The reason behind learning about cryptocurrency
- What people need to understand about cryptocurrency?
What is cryptocurrency?
If all the surrounding noises are reduced and come to a simple definition, then it is easy to find cryptocurrency as an internet-based platform of transaction that works on cryptological programs to produce economic transactions. It supports blockchain technology to create transparency, constant, and decentralization.
Bitcoin, a popular name among cryptocurrency comprise of multiple peers network. All peer has an entire record history of all single transaction and records the balance of all accounts. Here a transaction resembles a file that calls, “Bob gives X Bitcoin to Alice” and Bob will permit it by using his private key number. There is nothing special, it is just the fundamental key cryptography of the public. After signing, a transaction will be transmitted over the network, that records sent from one peer to another peer. Hence, we can say it is a p2p technology.
How did cryptocurrency has originated?
A small number of people know the fact that cryptocurrencies evolved as an alternative product of another invention. Satoshi Nakamoto invented Bitcoin, the first, and still playing an important role in cryptocurrency development, he has never thought to discover a new currency. In late 2008, while he discovered Bitcoin, he announced it as “A peer-to-peer Electronic Cash System.”
The second important thing of Satoshi’s discovery was that a unique way of building a decentralized virtual cash system has found by him. In the 90s several attempts by scientists and scholars failed to invent a digital cash system. Thereafter Satoshi decided to create a virtual cash system without giving any central entity that seems likely a Peer-to-Peer file-sharing network. This decision gives birth to cryptocurrency and what people missing Satoshi understood as digital cash. This is the reason it seems a bit complicated and technical, but if anyone able to understand it they will find it interesting.
How does cryptocurrency work?
How people can understand the working nature of cryptocurrency? Let’s understand and find it easily! In order to know about virtual cash, a payment network is required that connects with accounts, transactions, and balances. One vital issue that all payment networks need to resolve is to restrict the so-called double-spending; to resists that a single entity spends a similar amount twice. Generally, it happens by the central server that looks after the recorded balances. The server is not required in a decentralized network and thereby all single network entities have to perform their task. In this network system, all peers need to register a list with all transaction records to verify either the future transactions are justifiable or it just an attempt of double-spending.
What is cryptocurrency mining?
Everyone can become a miner. Since the decentralized network does not permit to envoy this task, to restrict the abuse by any ruling party a cryptocurrency requires a certain type of mechanism. Imagine if anyone produces thousands of peers and elaborates forged transactions then what will happen? Nothing the system must be break instantly.
Hence, Satoshi conducted an appropriate rule that miners have to fund some tasks by their computers to pass these tasks. Even, they need to search the hash product of the cryptocurrency program, which set up a connection between new blocks with old ones. It is known as Proof-of-Work. Bitcoins consist of SHA 256 Hash algorithm. A crypto miner can fix the cryptologic puzzle and can develop a block for adding into the blockchain. In the incentive method, he gets a right to add a so-called coinbase transaction that delivers him a certain figure of Bitcoins. This is an appropriate way of mining and creating valid cryptocurrencies.
Cryptocurrency Properties
While discussing cryptocurrencies’ properties, we should divide them into two categories- transactional properties and monetary properties. However, the maximum number of cryptocurrencies comes with a common set of properties, they are unable to set any benchmark.
| Transactional Properties | Monetary Properties |
| Unrepairability | Controlled Supply |
| Pseudonymous | No debt but bearer |
| Global and Fast | |
| Safe and Secure | |
| Permissionless |
List of cryptocurrencies
Bitcoins though positioned by far the most familiar cryptocurrency and the rest of cryptocurrencies have only presumed impact. However, users and investors must go through different cryptocurrencies. Here, we will showcase all renowned cryptocurrencies of this present date.
- Bitcoin
- Ethereum
- Ripple
- Litecoin
- Monero
Conclusion
Cryptocurrencies are becoming a fast and vast growing digital currency in the world. Almost every morning a new cryptocurrency is coming into the market and surpass the old ones. All of those cryptocurrencies appear with a new promise that presents an interesting story to transform the world around. Few of them sustain the first month and most of them are lost in the competition.
