Bitcoin, Cryptocurrencies, Public chains - Steemit Crypto Academy Season 4 - Homework Post for Task 5.
HELLO EVERYONE,
Hope you all are doing well. My name is Syed Huzaifa and I intend to write about Bitcoin, Cryptocurrencies, Public chains today. I'll be particularly focusing on the Cryptocurrency and its future topic. This is Crypto Academy Season 4 Beginners' course - Task 5 homework post assigned by @stream4u. Let's move on to the topic.
Homework post 5
What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
Unlike you and me and everyone else working at Steemit, must be familiar with the word Cryptocurrency. If you're a newbie and want to know more about cryptocurrency and how it functions, this post will help you a lot. So stay connect.
The field of cryptocurrency was officially introduced in 2008 when the whitepaper of Bitcoin(first cryptocurrency) was realized. Until then, many people did not take it seriously and found Blockchain complicated and unsuccessful. Today the hype of Bitcoin is at its peak and blockchain technology is now adopted all over the world. But the question is, why is blockchain so successful? This question brings you to the world of cryptocurrency.
What Is Cryptocurrency:
Cryptocurrency is a digital-based currency that operates electronically and is secure through Cryptography. It's a payment system posses by binary data and used for the transaction of funds/coins. Cryptocurrency doesn't have any physical appearance(Image Source) like hard cash, instead, it works like an exchange where an individual can transfer his funds without any middlemen, unlike banks.
The cryptocurrency was launched with the concept of decentralization which means, unlike banks, an individual doesn't have to get approved for making up the transaction. The banking system works on a centralized network, where an individual(Image source) has to follow the procedure for making up a transaction and this process takes a long time and also charges a high amount of fee. This problem was solved by the decentralized system of networks introduced in cryptocurrencies. In a decentralized platform, there are no middlemen, unlike banks. Cryptocurrency work in a peer-to-peer fashion where an individual can transfer its funds to anyone from anywhere using Public key and Private key.
Public key is used for defining the address of the account you want to transfer the funds.
Private key is used for making up the transaction. (Image Source)
Cryptocurrencies are secure through cryptography. Cryptography is a way to make communication secure by allowing the sender and recipient to encrypt and decode the message. Here, data is encrypted using a secret key by the sender, and on the other side, the information can be decrypted by the recipient by using the same secret key. This is how cryptography works. (Image Source)
This is a list of the few leading cryptocurrencies on coinmarketcap.com
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Advantages Of Cryptocurrency:
One of the notable advantages of cryptocurrency is that it runs on a decentralized platform, connecting its user in a peer-to-peer fashion.
Transaction is much faster compared to the banking system.
Cryptocurrency gives its user full authority over his funds.
Hacking is almost impossible in cryptocurrency/blockchain technology.
Disadvantages Of Cryptocurrency:
The rate of crime is much higher in crypto, as anyone can transfer funds to any other person across the world.
Another considerable drawback of crypto is the price violation. Cryptocurrencies are not stable except a few.
How You Would Like To See Cryptocurrency In The Future?
The user holding cryptocurrency is increasing day by day and many business companies are also investing in crypto. Business firms are also shifting their financial activities to blockchain technology. Due to decentralized networks, blockchain has a dozen of advantages due to which the world is adopting blockchain technology. Since 2008, many cryptocurrencies have been introduced and many more remain. The total market value of all cryptocurrencies now stands at $2.48 trillion according to bloomberg.com.
In my opinion, crypto is the future of finance. I believe that in the upcoming year, Countries that have not started investing in cryptocurrencies will soon start doing so. Countries will unban the cryptocurrency, sooner or later people will start making huge profits. Crypto trading will become so common that everyone will start investing in it. Many new currencies will be launched. Blockchain technology and learning will be offered by universities across the world. The banking system will be reduced or may come to an end.
The world is adopting a new way of trading, and people who still think that investing in crypto is risky will regret it. Like the way when people thought Bitcoin to be baseless and now it is worth more than $42,000. It's time to learn and start investing in cryptocurrencies.
Conclusion:
The world of cryptos is expanding day by day. From the time when the first cryptocurrency was launched until now, there are hundreds of coins being launched in the market worth more than 2 trillion. It's high time to learn about blockchain technology because crypto is the future.
I hope you like today's post and learn something new. Take care, Goodbye.
Regards,
@syedhuzaifa123.
Cc:
@stream4u