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Monday, September 23, 2019

Cryptocurrency - A Digital Money

Cryptocurrency - A Digital Money

Hey readers, this article is fascinating because it is based on cryptocurrency. So, we are going to know about cryptocurrency. Let's talk about that.


A cryptocurrency is a digital asset. It is a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control, as opposed to centralized digital currency and central banking system.

The decentralization control of cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

First released open-source software is Bitcoin which is released in 2009. It is generally considered as the first decentralized cryptocurrency. Since the release of bitcoin, over 4000 altcoins have been created.

Now, this is the time to describe the type of Cryptocurrency.

Bitcoin: It is a digital currency that you can send to other people. This may be as a gift, for services or a product. You get the idea --- it's just like the money we use in our bank accounts (USD, EUR, etc.). But it's digital isn't physical. With bitcoin, each transaction happens directly between users - it's called a peer-to-peer network. This is all possible thanks to the blockchain. It allows users to send and receive Bitcoin without using the third party. 

Altcoin: It is another type of cryptocurrency, and It is just an alternate version of Bitcoin with minor changes. There are more than a thousand altcoins in existence, but don't let the number scare you. It's important to understand, through that not all altcoins are just alternative to Bitcoin. Some are very very different from Bitcoin and have different goals/purposes.

Token (for daps) : The third primary type of cryptocurrency is a token - The same kind we've just been talking about. Out of the three main types of cryptocurrency, these are the ones I find most interesting. Compared to the other two main types of cryptocurrency, they are unique in the fact that they do not have their blockchain.

Litecoin (LTC): It was launched in 2011, and it was among the initial cryptocurrencies following the bitcoin. It has often been referred to as "silver to bitcoin's gold." Charlie Lee created it, an MIT graduate, and former Google engineer. Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses "script" as a proof of work, which can be decoded with the help of CPUs of consumer-grade. 

Ethereum (ETH): It was launched in 2015; It is a decentralized software platform that enables quick contacts and Distributed Application to be built and run without any downtime, fraud, control or interference from a third party.


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After reading this guide about Cryptocoin, you should be much more familiar with the most popular cryptocurrency that exists. You know how they are different from one another, and you understand some of the pros and cons of each. 

This puts you in a much better possibility to start doing further research and making your own opinion on each of them.