Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @abidshikh
Users are expected to briefly give an overview of cryptocurrency.
Draw a comparison between cryptocurrency and conventional currencies.
Explain the distinctive innovations of cryptocurrency and its downsides.
How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
Users are expected to briefly give an overview of cryptocurrency.
The phrase cryptocurrency is made up of two words: cryptography, which comes from the word cryptography, and currency, which comes from the word currency. I'd like us to first comprehend these terms individually before I explain what cryptocurrency is all about.
This defined as the method of securing information so that only the sender and recipient have complete control over the connection or information. Most of the time, our messages are not secure enough, and many people have seen them before they reach the intended recipient. Cryptography is a technique provide secure communication from unauthorised users.
This is the term used to define a country's widely acknowledged medium of exchange. The parties involved must utilise the currency as a medium of exchange if they are purchasing or selling a commodity. If a man meets a biscuit seller, for example, he gathers biscuits and gives the merchant money. anything like that
We may deduce from the two explanations above that cryptocurrency is a digital money that is utilised to conduct goods and service transactions. This cryptocurrency is unlike our fiat cash in that we cannot handle it in our hands. The purpose of cryptocurrency is to address the shortcomings of traditional fiat currency, which is regulated by governments and financial organisations.
The creation of cryptocurrencies was motivated by the need for people to have complete control over their assets. Cryptocurrency is kept in a wallet, which is available on most exchange platforms. This wallet has a one-of-a-kind key that only you have, and if you lose it, your asset is lost as well. This asset is traded solely between buyer and seller, with no involvement from any type of the banks or financial institutions.
Bitcoin was introduced in 2009 , As a first cryptocurrency ,With the help of this invention, a technique known as blockchain technology was developed, in which the system operates decentralised and transactions are transparent, simple, and even faster.
Cryptocurrency examples
There are thousands of cryptocurrencies. Some of the best known include:
- Bitcoin
- Ethereum
- Litecoin etc.
Draw a comparison between cryptocurrency and conventional currencies.
Here is common difference between it..
Difference between Cryptocurrency and Conventional
Cryptocurrency is an online currency, it is a form of currency that we cannot touch, while Conventional is not in digital form in a type of currency that we can touch and feel.
In Cryptocurrency,we can mail it anywhere in the world in a matter of hours,while in Conventional Transferring this money from one location to another takes a long time.
In Cryptocurrency,We don't require a third party to transact with this sort of currency. While in Conventional, we need a third party to conduct transactions in this form of currency.
In Cryptocurrency, It has a fast transaction speed. while Conventional, Its has not transaction speed.
In Cryptocurrency, was made with the intention of being used all over the world. while Conventional, was made for a certain region or country.
In Cryptocurrency, it is an extremely safe and decentralised money.while in Conventional, money is not as safe and centralised as others.
In Cryptocurrency, The currency's value isn't set in fixed. While In Conventional, The currency's value is fixed.
In Cryptocurrency,Deals in this form of money is allows for peer-to-peer transactions. While in Conventional,Deals in this form of money are not peer-to-peer.
In Cryptocurrency,this currency, you may make a lot of money or lose a lot of money. While In Conventional,The chances of making a profit or losing money are slim.
In Cryptocurrency,There is against the law in this world. While in Conventional,There is not against law in this world.
In Cryptocurrency,The chances of being hacked are too slim. While in Conventional,There is a greater likelihood of bank account hacking.
In Cryptocurrency, Countries approve this currency, we will be able to use it anywhere on the planet. While in Conventional,Because each country has its own currency, we cannot utilise Pakistani cash in other countries.
Explain the distinctive innovations of cryptocurrency and its downsides.
The blockchain, on which cryptocurrency is based, has resulted in a variety of cryptocurrency advancements. Various capabilities such as person-to-person transactions, permissionless access, anonymity, and so on have been enabled by the block.
These ideas are unlike anything we've seen before in the world of traditional currency. Because there are no trusted third-parties who delay transactions and increase costs through a series of confirmations, the person-to-person transaction of cryptocurrency is an innovation that has lowered transaction costs and considerably boosted transaction speed.
The absence of a third party has also made transactions more private, as transaction data such as the amount are solely known by the two people involved.
The blockchain is immutable, which means that transactions recorded on it can't be deleted, modified, or reversed.
- Downside
The main disadvantage is that mistakes are practically unavoidable during transactions, and because the blockchain is immutable, there are no ways to recover cryptocurrency paid to the wrong recipients, nor is there any customer service or third-party witness to complain to.
Because of the anonymity of users, it is impossible to track the identity of the person to whom the bitcoin is sent, making any transaction error extremely costly and painful.
How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
It is a crucial point because the mentioned disadvantages are what distinguishes cryptocurrencies from traditional currencies like fiat and central bank digital currencies (CBDC).
However, in order to address the aforementioned issues while maintaining the crypto character of cryptocurrencies, I propose that a maximum additional time limit be imposed on a sender's ability to reverse a transaction.
A bitcoin transaction is extremely rapid, taking only a few seconds on average to complete because to the lack of a third-party. This means that when we send cryptocurrency from our wallets, we anticipate the intended recipient to receive them within seconds, and if they don't, there's a good likelihood that a transaction error occurred.
Suppose there is a maximum additional time a sender can still reverse a transaction, say 3 minutes after sending, we can always reverse transactions if the intended recipient does not receive in a matter of seconds, saving us a lot of money.
I'm not sure how this is possible, but the rise of cryptocurrencies and blockchain has shown that in the world of technology, everything is possible.
Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
I am quite optimistic about the future of cryptocurrencies, and I believe that it will make a lot of money for people in the future, just like it has done in the past. In the past, we've seen that if we make a long-term investment in a cryptocurrency or a future investment, there's extremely little risk of losing money.
Many people have become heroes as a result of the cryptocurrency, and the worth of the bitcoin was only one dollar nine to ten years ago, and it now has an all-time high of $65,000 dollars. If this is the case, we can estimate how bright the future is. And, as a result, many large corporations and governments are investing in bitcoin, which is a positive sign for the cryptocurrency's future.
Cryptocurrency is a very volatile currency. It has the potential to make you a lot of money, but it also has the potential to make you a lot of money. No one can predict the future of cryptocurrency because it has the potential to make you rich or poor suddenly, so do your homework before investing.
Your post is informative. Keeps working on hard
Brother your article is very good. You explain well about all things. But I suggest you please try to focus on your markdown style and always use justy text because it is easy to understand. Another suggestion is that please avoid from plagiarism because it is a very bad habit. Thanks for sharing your thoughts with us.
Thanks for your response. I will try to do best in next time
Assalamoalaikum,
Bro Same was the case with me when I was a beginner i make huge loss im crypto due to lack of Crypto knowledge.
I think there should be some delay in time between a transaction to correct or recheck the transactions to minimize the losses and Your suggestion is Valuable for me as you're first to Say a Customer care is needed and I also feel it.