Hello People!

This is Aniqa Mashkoor. I am in good health hope so you people will be doing good too. Today I am making a homework post for professor @stream4u. He is one of the best and I seriously enjoy his lectures because they are easy to understand and always carry a huge amount of information that helps to clear the concepts.

Homework Task

What Is Cryptocurrency
How You Would Like To See Cryptocurrency In The Future?

With every passing day, the world is getting decentralized not only in terms of currencies but many other sectors of our present world have been shifted to decentralization. Cryptocurrencies are no longer a hidden or unique term that people don't know. With more advancement and digitalization in the ecosystem, cryptocurrencies have been added as a valuable asset and there are tons of benefits of cryptocurrencies. One should know all the details about cryptocurrencies in today's world.

CRYPTOCURRENCY

The first-ever idea about cryptocurrencies was coined in 1998 by Wei Dai. He wanted to bring innovation and wished to introduce virtual payment methods. In 2009 a person named Satoshi Nakamoto launched the first cryptocurrency widely known as "Bitcoin". The concept behind the launch of this cryptocurrency was to introduce a new and fast payment method. That can run internationally without any financial institution.

Cryptocurrency is a type of digital or electronic currency that is widely used for different transactions. It can also be used for buying and selling goods or other items. Cryptocurrencies are operated by using computers and a decentralized method of cryptography. Cryptocurrencies are entirely virtual and digital there is no physical existence of these currencies. There are digital wallets designed to keep cryptocurrencies.

Cryptocurrencies operate by using blockchain technology. A blockchain is defined as a decentralized digital ledger through which all the transitions are recorded. Whenever any transaction is made by buying or selling any crypto it is added to the blockchain. It is a type of database of all the transactions made and hence it is decentralized so it can be operated publically by all other crypto participants. But the details about transactions and people are secured using a cryptography technique.

In the present era, thousands of cryptocurrencies have been introduced. In terms of functionality, most of them are made by creating variations in the first-ever cryptocurrency that is Bitcoin. These currencies are used for buying and selling purposes and most of the cryptocurrency holders buy it for the sake of profit. They hold these currencies in a hope that prices will go high and they can make a good profit.

FEATURES OF CRYPTOCURRENCY

1. CRYPTOGRAPHY FOR SECURITY:

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Cryptography is a technique that is used for the security of transactions. The term crypto means secrete and the meaning of cryptography is "secret writing". This method uses codes to secure the information that can be understood by only those for whom it is concerned. Cryptocurrencies use this method to protect all their transactions
Cryptography ensures the confidentiality of the data. it encrypts the information that cannot be understood by everyone and then the receiver decrypts. The identity of the sender and the receiver is not disclosed.

2. DECENTRALIZED NETWORK:

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Cryptocurrencies operate in a decentralized network. It can be controlled by using a network of computers no central server is required for their transactions. Since it is a virtual currency so it does not require any financial institute.

3. DIGITAL CURRENCY:

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Cryptocurrency is a digital currency and it cannot feel like our currency. They are virtual and we cannot touch them. It is kept safe in digital wallets available on the online network. We can check and transfer them by using a computer and mobile.

ADVANTAGES & DISADVANTAGES OF CRYPTOCURRENCY

Advantages:

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• The transactions are fast and quick. They do not require many steps they can be transferred from one place to another either domestic or international by just using mobile and computer and by entering a few protecting codes/keys.

• It's easy to trace the history as every transaction is listed down in a ledger called blockchain and hence no one can make any false claim later.

• Cryptocurrencies are one of the secured because mostly they are decentralized and use blockchain technology and it is based on mathematical algorithms that are very hard and cannot be decoded by everyone.

Disadvantages:

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• If anyhow someone lost his digital wallet that is a huge loss and can't be reverted.

• Cryptocurrencies are becoming popular but still, they can't be used everywhere. They have some limitations and this causes a bit hurdle in transactions.

• In cryptocurrencies there is no regulation of price and the market does not have any scalability so it is quite difficult to plan them for the long run.

TOP 10 CRYPTOCURRENCIES

Below is the chart of the top 10 trading cryptocurrencies from coingecko.com

_{Snapshot taken from coingecko.com on 25th Oct}

HOW I WOULD LIKE TO SEE CRYPTOCURRENCY IN FUTURE

Cryptocurrencies are prevailing and becoming common with the passage of time. Still, they are considered illegal in many countries. At very first I would like this confusion to be clear by their government so that transactions and usage become easier for people and they can be used internationally with all legal rights.

The future of cryptocurrency is bright as the very first currency was introduced in 2009 and after that, there is a huge list of currencies up till now and this time also more new currencies are coming every month. Now cryptocurrencies are being introduced in many industrial sectors.

I would like to see cryptocurrencies as a future of trading and finance not only in my country but in the world. It is spreading now and I believe with time they will become more common. The cryptocurrency is up in the air right now and the decentralized blockchain technology has convinced people to invest in it.

There is a risk with cryptocurrency but with the risk, there are opportunities too, the living example of bitcoin is in front of us. It's important to learn how to trade in this but the future seems bright to me and I would love to see it spreading among the world.

CONCLUSION

Cryptocurrencies are digital currencies and are spreading widely in the world. They are protected by using a cryptographic technique which makes them secure. With every new month, more and more cryptocurrencies are being introduced in the market and I would love to see them become popular with all legal rights around the world.

Hope so it was a good read for you all.

Kind Regards
Aniqa Mashkoor