Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @thimalteb

Entire question to be answered

• 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.
Cryptocurrency is an innovative methodology that has been around since the late 1980s.
It is known that the first attempt at cryptocurrency occurred in the Netherlands.

What does “Crypto Currency” means?
A cryptocurrency is a form of digital currency which only exists electronically. Furthermore, when we consider fiat normal currencies like USD, and AUD; they are basically physical forms of money. But cryptocurrencies are known to be the virtual form of money in which all the transactions are being done via the internet with the help of programming languages.
Unlike the conventional currencies, where currencies are issued through a centralized body; cryptocurrencies are digital and are encrypted by crypto graphs.

What is cryptography?
Cryptography is a method of saving information or transaction data with the use of codes. With this, the information intended for a person can be read and processed.

The first successful cryptocurrency created was “Bitcoin” by a group of people called Satoshi Nakamoto.
Currently, there are thousands of cryptocurrencies or Altcoins that are being fluctuated in the market.
For Example ( Litecoin, Ethereum, Ripple, etc.)

Differing from the conventional currencies, cryptocurrencies are being stored in digital wallets or exchanges which can be either centralized or decentralized.
Bacborn of cryptocurrencies is the blockchain. Blockchain is a public ledger that includes the ability to record all the cryptocurrency data/ transaction data. This is governed by all who are in the network and no one can’t change its data without harming the Genesis block.

Draw a comparison between cryptocurrency and conventional currencies.

Conventional	Cryptocurrency
The physical form of money can be touched. Ex-USD, AUD	Virtual form of money which is converted into lines with the monetary value.
Has a centralized body to govern its actions.	Cryptocurrency is not under the governance of a central body. So it is called a decentralized system.
As the conventional system does not use private and public keys, the security levels of the system are a thing to be a concerned, about because the security level is quite low.	Cryptocurrencies use private and security keys to protect their data. So cryptocurrency has good security than the conventional system.
Conventional currencies do not have a market limit. Printing of money does not have a limit. Because of this, there’s a chance of inflation occurring.	Cryptocurrencies have market levels and the users are following these levels very strictly.
A conventional system uses only centralized exchanges to transact money.	Cryptocurrency uses both centralized and decentralized exchanges to do transactions.
Because of third-party involvement, conventional currency transactions are much slower.	As there is no third-party involvement in the transactions, the transaction time is comparatively very fast.

Explain the distinctive innovations of cryptocurrency and its downsides.

• Innovation
  Fast transactions through the accounts.-
  With the innovation of cryptocurrencies, the transactions have become so easy to complete with no time and when comparing it with the conventional transaction system, this system saves a lot of time.

• Downside
  Yes, it is true that the transactions are fast; but if someone accidentally missed typing the wallet addresses, then recovering back would be one of the hardest things for you.

• Innovation
  Trading and investing in cryptocurrencies have made the lifestyles of people easier in a comfortable manner. There are stories of people becoming multi-millioners within one night. There were poor people who became rich, after trading and investing in cryptocurrencies.

• Downside
  As we all know cryptocurrencies are highly volatile and the people who are investing and trading with zero knowledge have a higher chance of getting profit losses by significant margins. Recently the people who invested in LUNA and TST had also experienced it similarly.

• Innovation
  With the absence of an intermediate for transactions, most of the traditional conventional methods of time wastage, and money wastage were stopped and peer-to-peer transactions are popular in the digital transaction world.

• Downside
  As I’ve mentioned earlier, there are high possibilities of transactions peer-to-peer to be failed, a high possibility of scam attacks, and many more. So with the absence of the intermediate service, it is much more difficult for someone to recover their account.

• Innovation
  Most countries now are accepting payments for the services in digital currency is a good sight to see and with regard to security matters also, it is more reliable so that one could easily to their transactions without any fear.

• Downside
  It is true that cryptocurrencies are good for transaction purposes. But the unfortunate side is that the knowledge of cryptocurrency among the people is not that good and most people even do not know what cryptocurrency is all about.

How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.
As mentioned before, it is very hard for someone to recover their wrong payments in cryptocurrency. For this, in my point of view, I suggest registering every blockchain user in one place and giving them a unique identity mentioning their wallet address, together with including a QR code that would be identical to overcome the issues. Because of this the blockchain developers or the administration can have a clear picture of the users of the transactions.

Sudden price drops of LUNA and TST were really unbearable for many users. Many people lost their assets in big numbers. To overcome this I suggest that the users of the cryptocurrencies have to be more careful when analyzing the market. They should get aware of the fake news and have to make their own strategies for analyzing. Not only that I thoroughly believe that there should be a limitation for one cryptocurrency to fall or rise up. With this, we can avoid huge losses too.

To overcome the hacker attacks, people should be updated with the crypto security and the malicious messages. Also, I suggest that the crypto knowledge should be shared more and more among people, and for that communities like Steemit crypto academy should publish more articles in order to understand the basics of cryptocurrency.

Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?
Yes, I am a true believer in cryptocurrency and I have a highly hopeful recommendation for the future of Cryptocurrency. Yes, it is true that at the moment there is a huge market loss in almost all the cryptocurrencies. But when we look at the past, there were also so many market ups and downs. That is the volatile nature of cryptocurrencies.
So no need to get panic about the current situation.
Regardless of this downfall, prices will definitely change in no time. When we look at the past stats, there were people who became multimillionaires by using the platform in a very knowledgeable manner. Also, there were people who lost their assets up to the bottom. So what we need to do is, we need to have good knowledge of cryptocurrencies. Then only we can survive without a loss.
So I thoroughly believe that the people who have a proper idea about what is happening in the market will have a great chance of getting a brighter future by using cryptocurrencies in order to brighten their lives!!!

I would like to invite @hansihmd and @nethanya45 to participate in this contest.

Thank you!!!