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

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Introduction

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Greetings my lovely Steemians! Hope you all are doing good? It another beautiful day of the week, Am so excited to be part of steemit engagement challenge contest season 2 and Steemit Crypto Academy which as given an amazing topic to write on, title How cryptocurrencies has shaped the financial Realm. What is it's future? So let's get started.

Users are expected to briefly give an overview of cryptocurrency.

Cryptocurrency was created in 2008 by Satoshi Nakamoto, the usage of the currency started in 2009 when open-source software was executed.

Cryptocurrency is a digital currency that is protected by a cryptographic system, which is virtually impossible to double-spend and they permit secured payment online without involving third-party intermediaries. Alot of cryptocurrencies are decentralized network which is established on blockchain technology that is a dispense ledger imposed by various webs of computers. In cryptocurrencies the key feature is that they are not mainly delivered by any central government, giving them logical exemption to government intrusion or operation.

"Crypto" pertain to several cryptographic algorithms and techniques that protect these entries like public-private key pairs, elliptical curve encryption and hashing function which is used in database to make item easy to retrieved or recovered, also hashing is used in encrypted and decrypted of virtual signatures.

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Source

Cryptocurrencies can be buy from Cryptocurrency trading or mined and a few number of e-commerce website permit buying using cryptocurrencies. Actually cryptocurrencies, even well known ones like Bitcoin, are barely used for retail businesses. Nonetheless the value of cryptocurrencies skyrocketed has really made them popular as trading machines. Equally to a definite extent, they are mostly utilized for cross-border payment or transfers (i.e from one country to another) and also the use of the cryptographic technologies refer to cryptocurrencies function both as a virtual account system and as a currency.
Some types of cryptocurrencies are Litecoin, Ethereum and Bitcoin etc.

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In order for an individual to use cryptocurrencies, that individual need a wallet called cryptocurrencies wallet and these wallet are cloud-based service that is a software which is kept in our mobile phone or computer. The wallets are implement in which the individual keep their encryption keys(the key is in coding) that verify your identification and the individual link to their Cryptocurrency.

Also the single unit of cryptocurrencies can be known as tokens or coins, relying on the usage. Several are set to be units of trade for goods and services, others are kept for value and a few can be used to involve in a fixed software programs like monetary products and games.

Draw a comparison between cryptocurrency and conventional currencies.

Cryptocurrency	Conventional currencies
The fast adoption and inflation of digitalize currency markets shows a booming acknowledge of cryptocurrency on both the institutional level and the individual, so medium of exchange is involved in cryptocurrency.	conventional currency involves medium of exchange that is money must be a generally accepted signs of payment, Both sides in a transaction must partake in the percept of value.
Cryptocurrency acquires unique value from its native blockchain,where financial policies are clear and written into the procedure Data source. It have no economic policy but their financial policies are point to consensus mechanisms of the guidelines and governance, instead of a one, central organization.	conventional currency value is totally joined to choices made by central government and central banks, in regards to their financial and economic policy, for any conventional currency to be issued federal reserve bank gives the order.
Transaction the make use of cryptocurrencies happens through the process of blockchain without the involvement of any centralized medium, immediately giving the user access of freedom.	Transaction that make use of fiat currency happens within the traditional banking basic structure except for exchanges of cash. In several cases, a mediator is required to ease the exchange of funds amid two parties. For instance an individual transferring money to friends and relations in another country are involved in wire service merchant such as Western Union to make the transfer easy and also alot of people make use of financial services apps to buy foodstuffs, accessories through PayPal or Visa and this is a company payment technology.

Explain the distinctive innovations of cryptocurrency and its downsides.
There are several unique innovation of cryptocurrency which are as follows:-

• Cryptographic proof:- this is the major innovation of cryptocurrencies which enable two interested parties to perform transaction directly and fixed with each other in a decentralization manner without the involvement of a third-party to all the trading.

• Cryptocurrency as created a mean to which individuals from several country around the globe to perform transaction with each other that is accessibility.

• Cryptocurrency as given an exceptional and enhanced security due to blockchain technology, so this idea holding cryptocurrency cannot be penetrated by hacked because it's so safe.

• All cryptocurrency transaction of trading cannot be remote so this make it hard for any activities that involves fraud to happened.

The Downsides

The downsides of cryptocurrency are as follows:-

• One of the Downsides of cryptocurrency is price volatility which is to say the value of cryptocurrency can increase and also decrease significantly, this is the major problem because some people don't see it safe to change conventional currency to cryptocurrency.

• Cryptocurrency is not Regulated, it is not controlled by any financial authority or any central bank. No rule or law protecting it which is another downside.

• Cryptocurrency has cybersecurity problem that is, it can be hacked by fraudster and this can results to loss of investment by individuals.

How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier.

The issue of price vitality can be handled if cryptocurrency value is been linked precisely to asset that are tangible and intangible examples of tangible asset are vehicle, building, investion etc while intangible assets are self developed software, Brand's and trademark etc. And also if the adoption is increased consumer confidence with increase too.
If the technology can be regulated by federal government,it will increase the rate of investment in the technology and the risk will be reduced.

Do you believe in the future of cryptocurrency? State your reasons. Any Recommendations?

Yes, I believe in the future of cryptocurrency because over the years cryptocurrency price volatility has rises high not until recently that it went down in price volatility... Also I believe that if regulations can be in place in cryptocurrency this will increase the rate of investment and it will attract more investors and this will cause dominance.

Cryptocurrency is now becoming a trading asset over the year's alot of people where afraid to accept crypto as payment for service render but today its a different case because the world today is now accepting cryptocurrency for payment of service/goods been render.

The future is very bright for cryptocurrency and cryptocurrency has solved trading problem that is trading without paying commission to banks, we can trade with various people from one country to another so I believe in future more problem will be solved in cryptocurrency.

I recommend that investors should be wise while investing on cryptocurrency, Don't take it as your life investment like saving it for retirement but invest little then make use of conventional currency investment.

in conclusion

Thanks for reading through my post on cryptocurrency, please feel free to add your take on my article, your comment means alot to me.
I will like to invite @preye2, @simonnwigwe, and @olabillions to participate in this contests.