A short description of Cryptocurrency

in #cryptocurrency6 years ago (edited)

Cryptocurrency is digital currency which use cryptography. Now the question is what is cryptography? Cryptography is a method by which data can be encrypted, sorted and transmitted.

bitcoin00.jpg

Image Source: http://crypto-school.nl/

In a centralized systems, the government and bank controlled the currency. By contrast, government and bank can not controlled the supply of cryptocurrency. Because it is produced by a specific protocol which is build on decentralized network. A single person or organization can not controlled this network.

Cryptocurrency can be send via a decentralized and secure network to anyone anytime beyond banking hours and business day and permission. You don't need to worry about hacking or fraud.

bitcoin01.jpg

Image source: https://siliconangle.com/blog/2017/12/11/futures-traders-predict-bitcoin-price-growth-will-rapidly-slow/

On of the most popular and top cryptocurrency is Bitcoin. Bitcoin is first decentralized cryptocurrency invented by a group or person names Satochi Nakamoto in 2008. Now Bitcoin is widely used and accepted cryptocurrency worldwide. Bitcoin gain acceptance because:

  • Bitcoin is safe and no third parties.
  • Protocol is open source.
  • Blockchain is core component.

Today Bitcoin is widely accepted currency worldwide. Many restaurants, coffee shop and retailers are accepting Bitcoin as payment.
Still cryptocurrency is in early stage. Thousands of developers and programmers are working on developing new services and applications. In near future, we will be able to use cryptocurrency as a payment in every sector.

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Your description is ok, but I would add information about the mining because the network works due to the miners. Also, thus it is partially explained the decentralized character of cryptocurrencies because miners are located across the globe. I understand that not all cryptocurrencies are mined, but since you wrote about bitcoin, I think there is a reason to mention it. You called blockchain a core component and one of the advantages of bitcoin and didn’t explain what it is. It seems confusing for people who get acquainted with cryptocurrency for the first time.

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