Go Green One tree
One life
Trees
Loading...

What Is Cryptocurrency? Simplified In 200 Words

Author
SPEC INDIA
Posted

November 19, 2019

Updated

June 29th, 2023

Cryptocurrencies are digital money work as a medium of exchange just like normal currency.

Bitcoin is the first cryptocurrency.

As its name suggests, it’s created, maintained, and stored using cryptography. A cryptocurrency is secure and does not involve any central authority to perform a transaction.

American cryptographer David Chaum developed anonymous cryptographic money and after that, considerable efforts made in that direction.

The technical architecture of cryptocurrencies was created by Satoshi Nakamoto, a pseudonymous person or group of persons.

Highlights:

  • Decentralized nature
  • Eliminate central authority like governments and banks
  • Transactions can be performed directly via public/private keys
  • Can’t be removed or altered
  • All transactions are cryptographically secured (hash functions)

It has been making headlines worldwide since its launch and people are still skeptical about its use in day-to-day transactions.

Cryptocurrency

Some challenges in adoption:

  • Use for illegal activities
  • Vulnerabilities of the underlying platform
  • Exchange rate instability
  • Lack of knowledge
  • High infrastructure and transaction cost

There are a number of cryptocurrencies in the market in either evolving or dying phase.

All transactions are represented by ledger entries into the system and are managed by a community of miners.

[DISPLAY_ULTIMATE_SOCIAL_ICONS]
Author
SPEC INDIA

SPEC INDIA, as your single stop IT partner has been successfully implementing a bouquet of diverse solutions and services all over the globe, proving its mettle as an ISO 9001:2015 certified IT solutions organization. With efficient project management practices, international standards to comply, flexible engagement models and superior infrastructure, SPEC INDIA is a customer’s delight. Our skilled technical resources are apt at putting thoughts in a perspective by offering value-added reads for all.

Delivering Digital Outcomes To Accelerate Growth
Let’s Talk