What Is Cryptocurrency? Guide for Beginners

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Crypto means “Hidden/Secret” information.

Currency refers to “ Money ”. Different countries have their currency  and plays a vital role in economy. If you are intereseted to know all about What Is Cryptocurrency, so here we go.

Definition 

“It is a digital technique of earning money by using the encryption techniques”. It is a virtual currency. You can not see and touch it, its just digital currency.

No one can have any control on it and No one knows about that who sell it and how much? It is a blockchain process. The miner maintains the ledger and Special types of algorithms are used for it.

Below you will come to know about all terminologies that what is mining or blockchain etc.

History

In the early stages, people used to share the products by exchange method.

  • For example :
  • If a person gives a sugar-cane to another person, the other will give the same sugar-cane in return
  • If a person wants to send information, he will use letter means, the resources would be shared in the form of the letters.
  • Now gradually it has improved, and some of the great leaders named it ‘Coin’.
  • Now if a person wants to send any information or any data different digital techniques would be used.
  • Like Email and other etc.
  • Every currency has its importance.
  • So people used to buy products using it.
  • After that, every country made their own currency, i.e. Raja’s had their different currency.
  • Every currency has their value and the value depends upon the economy of the country.
  • If the country economy is high their currency will be high.
  • But if the economy of any country is low the value of their currency will also be low.
  • For example :
  • Dollar in Pakistan 1$=114 pkr .
  • Saudi riyall in Pakistan 1 reyall=30.60 pkr.
  • United Arab Emarat Darham in Pakistan 1 darham =31.70 pkr.
  • Rupee prize is controlled by RBI(Reserve Bank of India).
  • Different countries have their own organization of making currency.

How It Works

  • In the world of the computer field, it can be made.
  • In a network, computers are connected with each other to share the resources.

For example Torrent :

  • From All over the world different computers are connected to Torrent to perform their task.
  • A person uploads a file and downloads it. After that, he can also share that file with their friends via internet giving their uploading speed and computer hard-disk in which he stored the file.
  • No copy of cryptocurrency can be made because it is an encrypted currency.
  • If someone makes a copy of crypto-currency he/she can be easily caught.

How To Earn It

Following are the different steps by which you can earn it :

  • It is itself development in currency.
  • The countries earning it in vast are; Chins, Korea and Japan.
  • Some people said that its owner belongs to China.
  • You can send money to your relatives by internet banking.
  • Internet banking means transferring of any things in the presence of internet.
  • It includes Coins, i.e. Bitcoin etc.
  • No country has their ownership.
  • Through trading, you can earn it.
  • You can give Adds in websites for earning it.

Blockchain

The validity of each crypto-currency’s coins is provided by a block-chain. A block-chain is Continuously growing list of records called blocks which are linked and secured through cryptography.

Each block typically contains a hash pointer as a link to a previous block a timestamp and transactions data.

Time Stamping

Cryptography is techniques in which encryption and decryption techniques are used.

Encryption techniques are used for converting plain text to cipher text.

Decryption techniques are used for converting ciphertext back into plain text.

Crypto-currency uses various time-stamping schemes to avoid the need for a trusted third party to time-stamp transaction added to a block-chain ledger.

Proof of work schemes

The first time-stamping schemes invented was the proof-of-work schemes.

It was most widely used for poor-of-work schemes are based on SHA-256 and script. The latter now dominates over a crypto-currency with a least 480 confirmed Application.

Mining

In crypto-currency network, mining is a validation of transaction. For this successful minor obtained new crypto-currency as an award.

Wallets

It is just like a bank account.

A cryptocurrency wallet stores the public and private “key” or “addresses” which can be used to recover or spend the crypto-currency with the private key.

It is possible to note in the public ledger, effectively and efficiently spending of the associated crypto-currency. With the help of public key, it is possible for other peoples to send currency to the wallets.

Popular crypto-currency are:

ReleaseStatuscurrency FoundersHash AlgorathmProgramming language
2009Active Bitcoin Statosinaklamto SHA_256d C++
2011ActivelitecoinCharileee  Scrypt  C++
2011ActiveNameocoin Vincent durhamSHA-256d C++
2011ActiveSwiftcoinDaniel burno SHA-256d C++
2012ActiveBytecoin Crypto-noteSHA-256d C++
2012ActivePeercoinSunny kingSHA-256d C++

Other cryptocurrencies are :

     Doge-coin

     Emer-coin

     Feather-coin

     Grid-coin

     Prime-coin

     Ripple

     Nxt

     Aurora-coin

     Coinye

     Dash

     Neo

     Maza-coin

     Monero

     Tit-coin and much more.

ADVANTAGES:

  •  Crypto-currency is readily available to the public, and everyone can easily use it.
  • Allows you to make Quick and easy payments.
  • Fast settlements.
  • Lower fees.
  • It is Private and highly secured.
  • Remain anonymous.
  • Identify theft.
  • No Chargebacks.
  • Facilitate international trades.
  • Easy access.

     DIS-ADVANTAGES

  • Difficult to understand.
  • Not accepted widely.
  • You can lose your wallet.
  • There is no way to reverse the payments.
  • Uncertainty and volatility.
  • Scaling.

 

 

 

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