Steemit Crypto Academy Season 4 - Homework Post for Task 5.
1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
The same way we are all aware of the physical cash or money that we could all feel, touch and use, in that same vein crypto currencies are also financial assets that we can use but can't touch or feel, let's call them virtual currencies, or digital currencies that cant exist in any physical form
Crypto currencies are backed up by a decentralized nature with the aid of cyptography ensuring that there is no counterfeit or double spending issues. The word was formed from the word encryption which is usually used to secure networks.
The crypto currency functions on a peer-to-peer payment network with no third party interference sending and receiving currencies by broadcasting signed data to the network. the network consits of two major kinds of keys
- public key
- Private key
the public keys are used to just encrypt a data which is shared among the recievers and the senders while the private key encrpts and decrypts a data it is used mainly to sign transactions. it is impossible to recover this keys if they are lost which is a major set back so saving offline is ideal.
TYPES OF CRYPTOCURRENCIES
There are so many types of cryptocurrencies but the first remains the Bitcoin which is the most popular but today there are so many competing cryptocurrencies that we call the alt coins examples like ripple, shib, lit coin etc. but in general bitcoin still constituent a huge percentage of the total volume of cryptocurrencies in existence.
ADVANTAGES AND DISADVANTAGES OF CRYPTO CURRENCIES
- Easy transactions
- Being in control of your own funds without a third party
- Very confidential
- Very strong security
- no government policies to affect your asset
- it gives an avenue for money laundering and illegal activities
- Scalability issues
- Price volatility, not having a specific value
How You Would Like To See Cryptocurrency In The Future
Personally I believe cryptocurrency has come to stay and its the future of technolgy, it gives so much advantage that the world is searching for, saving us from the traditional system of centralized banking.
I would love to see crypto currency as the most acceptable medium of payment first in my country nigeria and in the world at large, where we can pay our school fees in cryptocurrencies, buy and sell with so much trust on the cryptocurrencies. furthermore, I wish in future the coin could be less volatile to reduce the risk and encourage a lot of people to have faith in it
I believe this is a wonderful lecture and I have deposited my understanding in the homework post