CryptoCurrency is an internet Based digital currency which uses cyptographical functions for Financial transactions. Which leverage the Block Chain Technology to gain decentralization and immutability.
CryptoCurrency is Just like any other currency such as Rupees in India, Dollar in USA, Euro in Europe, etc. even just like with any other currency, we can sell and buy things over internet through cryptocurrency also. But the thing to understand here is that the government does not have any hands on these cryptocurrencies as they are Decentrallized Currency, so no agency or government or any board has authority over them, due to which they cannot regulate its value.
In a very short time, Cryptocurrency has shown its power in the financial market. Because Crypto currency can also be called digital money because it is available in online mode only and we cannot buy it physically.
What is Cryptocurrency
Cryptocurrency is also called as digital currency. An Asset that is used for purchasing goods or services. This is a Peer to Peer Electronic System that we can be used to purchase Goods and Services in place of regular currencies through the Internet.
If we talk about the very 1st Cryptocurrency, then it will be Bitcoin which was first brought to the world. If we see today, more than 1000 Cryptocurrency are all around the world but only a few of them are more important, about which we will learn later in this article.
There are lots of Cryptocurrencies out there but only a few of them are performing well and which you can use other than Bitcoin.
If we talk about cryptocurrency and don’t talk of bitcoin, it’s impossible because Bitcoin is the first Cryptocurrency. Which was created by Satoshi Nakamoto in 2009. It is a digital currency that can be used to buy goods and services online. It is a de-centrallized currency which means that no government or any institution can track it. If we talk about today, then its value has increased considerably, which is now about 1 Bitcoin = 10,137.40 USD,
Ethereum is an open-source, decentralized blockchain-based computing platform just like Bitcoin. The name of its founder is Vitalik Buterin. Its Cryptocurrency token is called as ‘Ether‘. This platform helps its users to create digital token, with the help of which it can be used as currency. Ethereum (ETH) and Etheriem Classic (ETC) have been divided into two parts due to the recent addition of a Hard Fork. It is the second most famous cryptocurrency after bitcoin.
Litecoin is a decentralized peer-to-peer cryptocurrency which is an open source software released under the MIT / X11 license by Charles Lee in October 2011, a Former Google Employee. Most of the feature of Litecoin are similar to those of Bitcoin. Litecoin’s block generation time is 4 times less than Bitcoin. Therefore, Transaction is completed very quickly. It uses the Scrypt algorithm to perform mining.
The story of the formation of Dogecoin is quite interesting. It was compared to a dog for mocking Bitcoin which later took the form of a Cryptocurrency. The name of its founder is Billy Markus. Like Litecoin, it also uses Scrypt Algorithm.
Today the market value of Dogecoin is more than $ 197 million and it is accepted in more than 200 merchants all over the world. In this too, mining is much quicker than others.
Faircoin is part of a much larger grand socially-conscious vision, which is a Spain-based co-operative organization and also known as Catalan Integral Cooperative, or CIC. It uses the blockchain technology of Bitcoin , but with a more socially-constructive design. Like other cryptocurrencies, Faircoin does not depend on mining or minting new coins at all. But instead they use certified validation nodes, or CDNs, for the block generation. To verify coin in Faircoin, ‘proof-of-cooperation’ is used in exchange for proof-of-stake or proof-of-work.
Its earlier names were XCoin and Darkcoin, Dash, means ‘Digital’ and ‘Cash’. It is an open source, peer-to-peer cryptocurrency similar to Bitcoin. But it has more features than Bitcoin like ‘InstantSend‘ and ‘PrivateSend‘. In InstantSend, users can easily complete their transactions, while in Privatesend, the transaction is completely safe, where users’ privacy is given great importance.
Dash uses an uncommon algorithm called ‘X11’, which is unique in that it becomes compatible with even less powerful hardware, so that more people can mine their own currency. X11 is a very energy efficient algorithm, which consumes up to 30% less power than Scrypt.
Peercoin, which is completely based on the Bitcoin protocol and has a lot of source code common in both. In this, the Proof of work is not only relied upon to verify the transaction, but also the Proof of stake system is kept in view. As the name suggests, Peercoin is also peer-to-peer cryptocurrency similar to Bitcoin, in which the source code has been released under the MIT / X11 software license.
Peercoin also uses the SHA-256 algorithm, similar to Bitcoin. And it requires very little power to do transactions and mining.
Ripple was released in 2012 and is based on distributed open source protocol, Ripple is a real-time gross settlement system (RTGS) that runs its own Cryptocurrency also called Ripples (XRP) goes. It is a very popular cryptocurrency and has an overall market cap of about $ 10 billion. According to their officials, Ripple provides users to “secure, instant and nearly free global financial transactions of any size and in which there are no chargebacks.
It is actually born from the fork of Bytecoin in 2014 and since then it became very popular. This cryptocurrency works in all systems such as Windows, Mac, Linux, Android, and FreeBSD. Like Bitcoin, Monero also focuses on privacy and decentralization. The most important difference between Bitcoin and Monero is that high-end GPUs are used in Bitcoin while Monero uses consumer-level CPUs.
Benefits of CryptoCurrency
- The chances of fraud in cryptocurrency are slim.
- If we talk about cryptocurrency, then they are more secure than normal digital payment.
- In this, the transaction fees are also very low.
- The accounts in this are very secure because different types of Cryptography Algorithm are used in it.
Disadvantages of Cryptocurrency
- In cryptocurrency once the transaction is completed it is impossible to reverse it as there is no such option in it.
- If your Wallet ID is lost then it is lost forever because it is not possible to get it back. In such a situation, whatever money you have in your wallet is lost forever.