Bitcoin, Cryptocurrencies, Public chains - Steemit Crypto Academy Season 4 - Homework Post for Task 5
Today I will post my homework in Season 4 Task 5, today the topic of homework was Bitcoin, Cryptocurrencies, Public chains. In today's homework task I will answer question 1.
(1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
What Is Cryptocurrency:
Cryptocurrency is a digital virtual currency protected by cryptography. Cryptocurrency is a combination of two words. These two words are (crypto + currency) The word crypto comes from cryptography. The Latin word is cryptos. It means 'hidden', on the other hand the word grappie means 'French' and the German word 'graffi' means 'writing process'. The second part of cryptocurrency is currency. This is basically a token. Each token has a specific value that varies depending on demand and supply.
At present we complete our money transactions through online banking or mobile banking. They are completely under the control of that organization. Someone controls them, so we have to pay a specific or arbitrary charge for the transaction and the information is released. We can be a security risk to all those organizations. But the name of a new innovation is cryptocurrency, we can do direct peer-to-peer transactions through cryptocurrency without any kind of third party intervention. Everything we do is safe and we are not likely to risk it. So nowadays it is becoming very popular day by day.
In 1983, a man named David introduced the idea of exchanging money using cryptographic methods. In 1995, he laid the foundations for the first cryptographic electronics. But even then there was a lack of technology to ensure the privacy and security of users. For many days, even though the solution to these problems was sought, no one was able to solve this problem. But in 2007, Satoshi Nakamoto, one or more of the disguises, was able to solve the problem, and he invented a cryptocurrency called Bitcoin.
After the success and popularity of Bitcoin, it has received a lot of response in the world today and has done a lot of launches and is moving towards many cryptocurrencies and successes after Bitcoin. There are now more than 4,000 cryptocurrencies. , XRP, Polkadot, SHIBA INU, Dogecoin.
How Cryptocurrency Work:
We already know that cryptocurrency is an economy of a decentralized nature. It is not controlled by any central authority, it can be used safely by the user without any third party intervention. It basically runs on a computer network, but is traded or traded through cryptocurrency exchanges. They can keep their digital assets or tokens in the digital wallet and this user can transfer the digital assets directly to a user through the wallet without any third party intervention. The transaction is also verified through a process called mining and the transaction is not completed until it is recorded in the blockchain. In the case of cryptocurrencies, the history of each transaction is recorded in the blockchain in the form of a chain, and new blocks are added to the front of the chain, and this is usually visible to any user on the network.
Advantage of Cryptocurrency:
We already know what cryptocurrency is and how cryptocurrency works. We can understand from the above discussion that we can easily transact through cryptocurrency and it makes our work much easier. This means that cryptocurrency has many advantages below. Its advantages are discussed.
Low Cost for transactions:
Usually if we go to do transactions through mobile banking or the banks that exist in our country, the cost of transacting or transacting through cryptocurrency is much less than the amount of fee we have to pay. Then if I go to send money from our country to another country, then there is no point, I have to pay a lot of charge for it. But if I do this transaction with cryptocurrency, I can easily complete my transaction with very little fee.
Quick transaction:
If we want to complete a transaction through the banks in our country, first I have to get out of the house, then I have to go to the bank, go to the bank and stand in line, then I have to complete a transaction. But if we want to transact through cryptocurrency, we can complete a transaction in a very short time with the smartphone in our hands at any time.
Security:
Using cryptocurrency is completely safe and can make transactions very easily. Since there is no third party interference, my case will be completely secure or no one will understand our transaction except me and the person I am referring to. In that case it provides a much higher security.
Decentralized:
The cryptocurrency issue is completely decetralized. No one controls the cryptocurrency, so we can create an account here and use our digital assets securely without giving us any information in the cryptocurrency system.
Disadvantage of Cryptocurrency:
As cryptocurrency has many advantages, it also has some aspects that can harm us, so we must be careful before doing so.
- If we ever accidentally send our digital asset or token to an account while transacting this cryptocurrency, it is no longer possible to return it to us.
- We know that when we go to create a cryptocurrency wallet, we are given a private key. In that case, if we ever lose this private key, the assets I had in that wallet will never be returned, or if that private key is hacked from me, I may lose all the assets in my wallet.
How You Would Like To See Cryptocurrency In The Future?
At one time we had a system of exchange in this world and then people used to exchange goods. Someone would need rice and someone would need pulses, in which case these two people would exchange two products. This is how they used to do transactions in their society and then gold coins came, people used to do their transactions with these gold coins. Then comes the paper currency that is seen in our present society. However, in today's society, besides paper currency, transactions are being done through mobile banking in our country and people are looking at it very positively.
Today's world is moving towards digital and people's thinking is moving towards digital. In that case I think cryptocurrency is a very promising invention for the present age. Because people now want to do anything very easily. In that case this cryptocurrency could be a very good medium for all those people or for the people of the present age. After the popularity of Bitcoin, we are seeing many cryptocurrencies in the market and day by day many cryptocurrencies are coming in the market and they are becoming popular.
Many people are taking it very positively and many investors are investing in the cryptocurrency market and those who are investing consciously can benefit a lot. The biggest thing is that you can use it on your own smartphone, without any third party intervention, by creating a wallet, in a very safe way, in an easy way, sitting at home. It is for all these advantages that people have come to love this cryptocurrency so much.
So all I can say is that the way this cryptocurrency market is becoming popular now and the way people are taking it positively now, it will take up a lot more space in the future and maybe one day people's transactions like personal transactions, business transactions will be through this cryptocurrency. . As we are currently seeing, many large companies are transacting through cryptocurrency. In that case I wish a bright future for this cryptocurrency and I want cryptocurrency to be legalized in every country so that ordinary people can easily secure their own transactions using cryptocurrency of decentralized nature to complete their transaction.
Conclusion:
In conclusion I can say that cryptocurrency is a very widely used and popular digital transaction medium for future generations. Just as cryptocurrency has many advantages, if we do not use it consciously, it can do us a lot of harm. So we should gain knowledge about cryptocurrency before we use it and then use it. For example, before we make a wallet, we will take care of how we keep the private key in a wallet.