What is Cryptocurrency | Why Cryptocurrency is the Future | Bitcoin | Ether

Imagine you are chatting with your friends now, at some point in that conversation someone will mention cryptocurrencies. Now, cryptocurrencies are something everyone wants to talk about, but nobody really knows how they work. To fix that I am Amritesh from the Trakin Tech website and this is the "what is cryptocurrency and why cryptocurrency is the future" explained.

CONTENT:

• Why the Cryptocurrency is the Future.
• What is a cryptocurrency?
• How does Cryptocurrency work?
• How much Secure Cryptocurrency is.
• Two Cryptocurrency- Bitcoin and Ether
• Bitcoin VS Ether

Why the Cryptocurrency is the Future:

• Failure of Barter System/Exchange System:

Currency has been a very important part of our lives since mankind. In the age of the cavemen they used the exchange system, now the exchange system involves the exchange of goods and services between one another, so now we have a situation where a caveman trades seven apples and gets oranges in exchange, the exchange system was no longer used because there are some obvious ones Showed defects. 

 

Reason 1

Now, one of those mistakes is that people's needs match, for example, you have five apples and your friend has five oranges. and if your friend doesn't need the apples you own, he isn't ready to trade them.

Reason 2

There is no common measure of value now as there is no common measure of what value a product can be expressed, there is a problem when you have to decide how many apples to trade for an orange or mango, not all of the codes can be divided or subdivided, for example, you can divide a living animal into various smaller units.

Reason 3

Goods can no longer be easily transported, unlike our modern currency that fits in your wallet or mobile phone. You cannot take the goods you own everywhere after you have found that the exchange system works very well. 110 BC An official coin was minted in 1250 AD. Gilded Florence was introduced and used all over Europe and from 1680 to 1980 paper money gained great popularity and was used all over the world. 

• Will Failure of Modern Currency in the Future

This is how the modern currency as we know it came about. Modern currencies have included paper money and coins, credit cards, and digital wallets, for example, you have Apple Pay, Amazon Pay, Pay Pal, etc. All of this was controlled by banks and governments, which means that there was a single regulator in place that delineated the workings of paper money and credit cards. 

Reason 1 

Now imagine the scenario of an online transaction where you thank your friend for paying for your lunch. Does he say he will transfer the money to his account after this transaction is successful, but there are several ways this could go wrong? It could have been a technical problem with the bank, for example, the systems could have been the machines. It is not working properly, etc. That means that there is a central source of error which is the bank.

Reason 2 

User accounts could have been hacked, for example, it could be a DDoS attack or identity theft, etc. or the transfer limits for this account have been exceeded, so the future of the currency lies in cryptocurrencies. 

• Rising Growth and Demand of Cryptocurrency

Reason 1

Now imagine the transaction between two people in the future, one of them has the Bitcoin app and a notification will appear if they are sure they are ready to transfer five bitcoins. The balance required for this transaction and other things, now that the payment is made and the payment is received, does it in a matter of minutes and it is as simple as this eliminates all the problems of modern banking.

Reason 2

There is no limit to the funds you can transfer, your accounts cannot be hacked and there is no central point of failure, over 1,600 cryptocurrencies have been available since 2018. Now there are some popular ones like Bitcoin Litecoin, Harry modifies any cash, and a new one Cryptocurrency. It happens every day, considering how much growth they have right now, there's a good chance a lot more will be added in the next few years. 

What is a cryptocurrency?

A cryptocurrency is a digital or virtual currency that must be a medium of exchange. Now, cryptocurrency is pretty similar to real-world currency, only it doesn't have a physical incarnation, it also uses crypto to function the way it does. One of the characteristics of cryptocurrency is that the number of units is limited. 

Bitcoin can have this limit. now exists at 21 million, after that no more bitcoins will be produced, you can easily check the money transfer now, the hashing algorithms that bitcoin uses make it very easy for users to determine whether a transaction is valid or not, they work independently from a bank or central authority.

How does Cryptocurrency work?

They work decentrally, new units can now only be added after certain conditions have been met, for example with Bitcoin only after the block has been added to the blockchain, the miner is rewarded with Bitcoins and that is the only way new Bitcoins can be generated, which the What makes cryptocurrency so special in the first place is it's low to no transaction costs. Now, using the digital wallet, you know that when you transfer money from your wallet to your bank account, you lose an amount of money that you can access 24/7 at 3 a.m. and say you want to withdraw some money, there are no restrictions on purchases and madras, there is a freedom that anyone can use.

For example, when you set up an account with your bank, there is a certain amount of paperwork and documentation to do with cryptocurrencies, all of which can be avoided. International transactions are faster. Bank transfers take about half a day to transfer money from one place to another. but with cryptocurrencies, it only takes minutes or seconds. 

How much Secure Cryptocurrency is:

Now, what is crypto in cryptocurrencies? The answer is Crypto Navistick or Prague Rafi, it is a method of using encryption and decryption to secure communications in the presence of third parties with bad intentions. This now applies to third parties who want to steal your data or eavesdrop on your conversation.

Cryptography uses computational algorithms like sha256, the hash algorithm that Bitcoin uses, a public key that is like a digital identity of the user that it shares with everyone and a private key that is a digital signature of the user that it hides Now let's talk about a normal bitcoin transaction, first you have the details of the transaction, now these details, who you want to send them to and the amount of bitcoins you want to send, then it is hashed for bitcoin by a hash algorithm directed, we use the sha256 algorithm, the result is passed through a signature algorithm with the user's private key. 

Now that is used to uniquely identify the user, this output is then distributed over the network so that people can check if this is done with the public key of the user sender the people who review the transaction in order to practice check whether it's valid or not like now after this is done, the transaction and various others will be added to the blockchain where they cannot be changed again if the hashing concepts seem a little tricky to you. 

I suggest that you click on the top right corner and watch the blockchain explanation video so that you can better understand it now. As I told you, the sha256 algorithm now looks something like this, given how complicated it is. It seems like I'm sure encryption is very hard to hack.

Two Cryptocurrency- Bitcoin and Ether

Today we will focus on two main cryptocurrencies, Bitcoin and Ether. 

Now Bitcoin is a digital currency that is decentralized and powered by blockchain technology. uses a network of peers to conduct transactions. 

Let's talk about ether, ether is a currency that is accepted on the etherium network. Now the Etherium network is using blockchain technology to create an open-source platform for building and implementing decentralized applications. 

Now let's talk about the similarities VidCon and Ether are the largest and most valuable cryptocurrencies on the market, both of which currently use blockchain technology, which is nothing more than a technology that implies that transactions are added to a container called a block , and creating a chain of blocks where the data cannot be changed, the currency it's mine, using a method called Proof of Work, a form of math puzzle that needs to be solved before a block is finally added to the blockchain can, these are widely used all over the world. 

Bitcoin VS Ether

Talking about the differences with Bitcoin is used to send money to someone. This is very similar to how real currency works with Ether, it is used as currency within the Etherium network, although it can also be used for real-life transactions.

Bitcoin transactions are manual, which means that you carry out these transactions in person using Ether you have the option to make these transactions manual or automatic or programmable, which means that these transactions take place when certain conditions for Bitcoin are met, it takes 10 minutes to complete a transaction. This is the time it takes to add a block to the blockchain using Ether. It takes about 20 seconds to complete a transaction, no blockchain is used as money from True, my transactions, and Ether are used to power the Etherium network and also for real transactions. Ether is used as a fuel within the Etherium network to power both.

Now there is a limit to the number of possible Bitcoins which is 21 million, it is assumed that we would reach this number by the year 2140. Ether is expected to be present for a while, but not to exceed 100 million units. Bitcoin is used for transactions in goods and services and Ether uses blockchain technology to create a ledger to trigger a transaction.

Thank you for being here. 

That brings us to the end of another article. Hope you found this informative and useful. If you have any comments or concerns, please write them in the comments below. We're happy to help, thanks for reading and listening. more on the Trakin Tech website.