Do you believe that it is now possible to transfer money to your friends and family without going to banks or demanding for the assistance of any trusted third parties? Here’s how!

 

Nowadays, exponential innovation has been spreading all over the world. People continue to improve a lot of things that make our lives much easier than the way it was before. Can you imagine? From centralized to decentralize bank is even possible!? (To know more about centralized and decentralized check out this article! https://medium.com/@jessamuyot)

All of our banks have access to our financial accounts and even our personal information. However, banks have only one central server. The worst thing is when hackers can compromise it at any time. Thanks for the invention of cryptocurrency. Now, we don’t need to give our personal information to anyone, and the best thing is, we are the only one who can access our financial account. One more thing is, it is not stored in one server. Therefore, hackers need to hack all the servers in the network at the same time to modify the contained data. Fascinating, isn’t it?

 

Let’s jump in, what cryptocurrency is?

Bitcoin is the first cryptocurrency that applied Blockchain technology. In 2009, an anonymous person or a group of programmers had been known as Satoshi Nakamoto released the whitepaper of Bitcoin, a peer-to-peer electronic cash system with no trusted third party, with an expectation to solve the double spending problem that many programmers had been failed to deal with.

 

Cryptocurrency is a digital or virtual currency that can be used as a medium of exchange. It uses cryptography to secure the financial transactions that are stored in the blockchain. It also breaks the double spending problem by using encryption techniques to control the creation of monetary units.

Cryptocurrency make it easier to transfer funds between two parties in a transaction, because it is a peer-to-peer network. Also, it is very accessible, why? It is because billions of people can access the internet, but not everyone has access to banks or any money exchange systems. That’s one of the most significant advantages of cryptocurrency over banks.

How does cryptocurrency work?

 

Every transaction facilitated through the use of private and public keys for security purposes. These keys are represented by addresses, which do not require your personal information. Only these addresses are the keys to transfer money.

After that, the transaction will be distributed across the network. Only the miners can confirm the transactions by solving a cryptographic problem. The first miner who solves the cryptographic problem will be rewarded and broadcasted to every node in the network. Every node will have a copy of the transaction and it will be added to their database. Once it’s verified, another block will be added to the chain, which contains created time and data and cannot be changed it anymore.

This is basically how cryptocurrency works.

Oops! Wait! There’s more!

Cryptocurrency is not only for transferring money, but there are also a lot of things you can do with it.

Pay Goods and Services

If you’re not aware, there is a lot of merchants who are accepting cryptocurrencies as payment like Bitcoin and Ethereum both online and offline. It can be used to pay for hotels, restaurants, travel agencies, apps, etc.

Sooner or later, when the world has fully adopted cryptocurrencies, we will be cashless, SOON.

Investment

Cryptocurrency is one of the good investments in this generation. If you heard some news about cryptocurrency, I’m pretty sure you will be fascinated by this kind of investment. I read some stories that many people became rich by investing in cryptocurrencies. Especially with Bitcoin investors, because last November 2017, the price of one Bitcoin exceeded $7,000.

However, please keep in mind that cryptocurrency is a high-risk investment. Its market value fluctuating, you’ll never know if it will go up or down. No one can tell. Before investing in this kind of business, please make sure that you have enough knowledge about it.

I hope you have learned something new about cryptocurrency, for more please visit: https://medium.com/me/stories/public

Please visit also our page: XIN Marketing | Blockchain | Innovate the world

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