Cryptocurrency

What is Cryptocurrency?

Cryptocurrency also called DigitalCurrency or Digital Money is an internet-based medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies but allows for instantaneous transactions and borderless transfer-of-ownership. Encryption techniques (Cryptography) are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Main features of Cryptocurrency are:
A Digital medium used in exchanges.
Cryptographically secure
Distributed ( data isnot stored at one place, it is distributed)
Peer-to-Peer ( it is transferable)
Decentralized ( it does not need a centralized organization)
Mutual Distrust

The technology used by Cryptocurrency is Block Chain (Distributed Database).

BLOCKCHAIN:Blockchain is a distributed Ledger (a distributed record). It works on majority role, having a network of computers.

Data stored in a blockchain is much more secure than normal storage. There is a Public key and a Private Key. The public key is the Address and Private is like a Password. Data is stored using these two Keys. If the Private key is lost it data cannot be retrieved back. Data in a blockchain is stored in a chain manner, whenever a new block is added a cryptocurrency is received by the person who ever adds a new paper or a block that is called mining. Each block has an Address, a number if someone changes the number an error occurs. If a data of any block needs to be changed all the Address of the blocks needs to be changed or evaluated. The chain structure makes the blockchain more secured. A transaction cannot be changed.

BITCOIN: Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto.The transaction is made with no middlemen which means No Banks. There were no transaction fee and no need of giving your real name.

More merchants are beginning to accept them. You can buy web hosting services as well as pizzas.

Satoshi Nakamoto-The real name of this person is still unknown. HE started working on Bitcoin since 2007. Published the paper about Bitcoin in the year 2008 and released the code in 2009. Stopped working in 2010. He transferred his projects to Gavin Andresen, his successor. It is believed that he owns 1million bitcoins, which has never been spent.

How bitcoin works?

Bitcoins are generated by anyone with a mining application. A certain amount of work is required for each block to be mined.

The total amount of bitcoins is predictable and limited.
Bitcoins are stored in a digital wallet, similar to online banking.
Transactions are verified by miners and permanently and anonymously stored on the network.
Bitcoin software is open source, meaning anyone can review the code.

Bitcoin and Dark Web:Decentralized currency which is used in most Dark web transactions. It is anonymous than any other form of payment. It is highly volatile in pricing.

ICO:It stands for Initial Coin Offering. Instead of giving ownership to the people they create their own currency.ICO is a type of funding using cryptocurrencies.

BLOCK CHAIN INNOVATION:Blockchain technology enables us to create a currency, which is independent of any central governing agency.Blockchain runs in a democratic way. This mode of transactions is used in advertisement modes.

BITCOIN CASH:It is a processed bitcoin. It is an open source software. Every working is same as bitcoin cash.

CONCEPT OF BITCOIN MINING:New money is printed whenever new blocks are added new bitcoin is created and the money is given to the owner who creates it. He can sell the bitcoins in the cryptocurrency exchange. People buy bitcoins and miners can go and sell them their newly mined bitcoins. Computers can be mined by mathematical answers through guess works. New bitcoin mined is given to the owner.miners are those who create computers especially to solve problems. it is just designed for mining bitcoins and have the probability of giving mostly the right answers. China is at the forefront of the mining company. India is the next after China.