What is Cryptocurrency
Are you still puzzled with the word Cryptocurrency then lets make it clear first, before diving into the term directly lets get to understand about virtual currency and digitized currency first. Being a part of digitized India we all know what digital currency is?
Digital Currency
As a bank account holder you can transact and receive money entirely through digitized format using few details like bank account number, this approach is known as digitized currency. The ultimate aim of implementing digitized currency is that complete usage of prevailing digitized technology.
Virtual Currency
This term may sound similar to that of digital currency but it is quite different based on the place and usage of money. Eventhough the amount is handled in a virtual mode still it is not declared as an official method of monetary usage by government and people involving in it have to approach it totally on their own risk.
Cryptocurrency
The difference between these two financial terminologies is very thin, where digital currency can be used in your day to day transactions like mobile recharge, grocery purchase through online applications like Paytm. Whereas virtual currency is purely based on reward points you earn through installation and utilization of apps like Google Tez .
Therefore cryptocurrency can be determined as the combined format of both virtual and digital currency, where if P2P (Peer to Peer) business happens with day to day and real world products then it is said to be using digital currency, whereas involvement of virtual product is said to be virtual currency.
Basically cryptography concept is implemented here were the transactional code is encrypted using a specific algorithm. This methodology is followed in credit and debit card of banks and also in PayPal.
How Cryptocurrency Works
Cryptocurrency is out and out used for transferring amount in a much secured way using cryptography. It uses multi layered approach in the transaction process where
1. Initiating transactional request from a peer
2.Transactional amount is sent via digitized form from peer A to computer node
3. The computer node validates the received transaction using a series of algorithm to verify whether it is sent from and to be received to respective way.
4. Once the node has verified with the transaction it is then involved with cryptocurrency.
5. Now involves the block chain architecture which even strengthen the multi-layer of Cryptocurrency.
6. Transacted amount is delivered to peer B.
Future of Cryptocurrency
First of all cryptocurrency is not that much of a wide spread term where most of us doesn’t know about its basics. To utilize the cryptocurrency to its fullest we have explained its basics in the above segment, this is more of a decentralized as well as anonymous concept which need to be studied a lot first. Therefore first it requires basic understanding and this concept will be an established real time approach in this year by contributing lot towards a country’s economy.
Cryptocurrency holds an important position when it comes to India as the whole nation is moving towards the digitized era in every single aspect. Moreover the consumer market is also huge cryptocurrency will be developing in a huge fashion especially in India. Investing in Cryptocurrency is same as investing in stock, people investing in the right product at the right time will definetley get benefited.
Apart from peer-peer cryptocurrency approach there are two other approaches available, peer-peer is used for business transactions same as “ In-person” purchase involves buying products or services from retail stores and finally Remote purchase is all about buying through e-commerce site.
Notable Characteristics
Highly Irreversible
Once the amount gets transacted from one peer to another peer then it is transacted. There is no retrieving back of the transactional amount at any cost at any time. This is one superm example of its Cryptocurrency’s uncompromising great brutal
feature.
Purely Imitative
Nothing in this transaction is related to real world and it cannot be connected at any point of time. Even the address you receive is generated in random numbers at the maximum you can calculate the transactional flow, but you cannot connect to the real world at any cost.
Global Swift
Reach of cryptocurrency is global in a much faster rate, business organizations can transact even huge amount within couple of minutes. Cryptocurrency has no compromise with speed, therefore transactional quantity really doesn’t matters.
Authentic
Authenticity is high when it comes to amount transaction through cryptocurrency, where it is designed in a more secured way in its initial in any format. Breaking the generated code using cryptography is highly impossible.
Some Of Well Established Cryptocurrencies
litecoin
augur
NEM
Bit Coin
Ripple
Dash
Monero
Ethereum
