Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @malikusman1.

My dear friends Cryptocurrency, sometimes known as online money, it is a type of digital or virtual currency that uses encryption to safeguard transactions. Crypto money operate without a central issuing or regulating power, instead relying on a decentralised method to track crypto transactions and create new units.

It's a P2P transaction system that lets anyone send and receive crypto coins from anywhere in this world. Crypto coins are only digital money in an online system that confirm the transactions, not physical money that can be carried around and exchanged.

Transactions of bitcoin (BTC) funds are recorded in a public ledger. Crypto coins are stored in online digital wallets. The term cryptocurrency stems from the fact that crypto transactions are verified through encryption. As a result, storing and distributing crypto data between digital crytpo wallets and to public ledgers requires a high level of coding. The aim of encryption is to assure strong security and safety.

Bitcoin (BTC), the first cryptocurrency, was created in the year 2009 and is still the most well-known today and its rank is 1 thats a impressive thing. So, that's a quick rundown of crypto or digital currency.

COMPARISON B/W CRYPTOCUREENCY AND CONVENTIONAL CURRENCIES

There are a lot of differences between the crypto and conventional currencies. These currencies are totally different from each other. So, lets discuss the difference between them one by on without wasting our time.

So, these are the some major differences between Crypto and conventional currency that i explained above.

INNOVATIONS AND DOWNSIDES OF CRYPTOCURRENCY

There are a lot of innovations and downsides of cryptocurrency which i will explain below.

(1) PRIVACY: Crypto do a lot of innovation in the matter of privacy because you don't need to register for an account with a financial institution to transact with bitcoin, you may keep a level of privacy. Crypto Transactions are pseudonymous, which means you have a unique identifier on the blockchain (your wallet address), but no personally identifying information is stored with it.

DOWNSIDE: The downside is that many people use this privacy for illegal purposes. For example, a drug dealer can easily sell his drugs in this way because no one knows the name of the owner of the wallet.

(2) SPEEDY TRANSACTIONS: Cryptocurrencies have a fast transaction speed since transmitting digital assests from one wallet address to another has been made simple and quick.

DOWNSIDE: The downside of cryptocurrency transactions is that if we make a transaction and send it to the wrong wallet address, we will not be able to reverse or recover it. In this way, we may face a big loss.

(3) TRANSPARENCY: All cryptocurrency transactions are recorded on the blockchain ledger, which is open to the public. Anyone may look at your crypto transaction details, including where, when and how much crypto coins was transmitted from a digital wallet address, using tools. Anyone may see how much crypto is store in a crypto wallet. So, thats a another great innovation of cryptocurrency.

DOWNSIDE: The disadvantage in this scenario is that some customers were particularly eager to share their account's transaction detalis with other persons.

HOW MAJOR PROBLEMS WITH CRYPTOCURRENCY CAN BE HANDLED

There is no Issue in the world that cannot be solved. There is a solution to every Issue or problem in the world. cryptocurrency problems can also be handled if the authorties took strong step. The downside of cryptocurrency privacy can be handled if every country build its own CBDC. Because with the help of this we can safe from a lot of illegal transactions.

In worldly banks, if wrong payment is transferred from someone, we can take it back, but in cryptocurrency, this is not the case. Once we have transferred online money to someone wrong, it is very difficult to recover. If the owner of the blockchain has the identity card and personal details of the owner of the wallet, then we can avoid wrong transaction and also recover our money and I hope that this problem will be solved in the near future.

Some people do not want to reveal their transaction details to the public and they say that they should be kept secret but this is not the case with cryptocurrency. That's why blockchain developers need to make an update so that anyone who wants to show their transaction data can get it done and those who don't want to come can keep it a secret, so this problem can be handled in the same way.

FUTURE OF CRYPTOCURRENCY

I believe a lot in the future of cryptocurrency and I believe that in the times to come it has made a lot of money for people and it has made a lot of people in the past. The past has shown that if we want to make a long term investment in a cryptocurrency or future investment, then there is very little chance of loss.

The cryptocurrency has made a lot of people heroes from zero, and if we talk about it 11 to 12 years ago, the value of the bitcoin was only one dollar, and if we talk about it today, its all time high is 70,000 dollars. If so, we can gauge how bright the future is. And nowadays big companies and many countries are investing in cryptocurrency, so this is a good thing about the future of cryptocurrency.

Cryptocurrency is a currency that is very risky. It can give you huge profits and can also give you huge losses. No one can tell you about the future of crypto because it can make you rich overnight and poor overnight so do your research before investing.