What Is Cryptocurrency? Simplified In 200 Words

  • Posted on : November 19, 2019
  • Author : SPEC INDIA
  • Category : Futuristic Tech

CryptocurrencyCryptocurrencies 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.

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.

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 a boutique 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.