Let’s have a look at cryptocurrencies in detail.
What is cryptocurrency?
The invention of cryptocurrency was discovered along with the discovery of bitcoins. In the year 2008, Satoshi Nakamoto (an individual or a group) invented a decentralized digital cash system called “bitcoins”. And along with that, a new concept “cryptocurrency” was born. And bitcoin was the first ever cryptocurrency in the world.
Learn more about Bitcoin – advantages disadvantage here.
After that, many cryptocurrencies were created. As for example, we can talk about ethereum, coinbase, ledegerX, square, litecoin etc.
The best part of cryptocurrencies is that it is protected by the cryptography and the entire system is decentralized.
But what if we pare down all the noises one by one around cryptocurrency, what cryptocurrency is actually all about?
In simple terms, cryptocurrencies can be defined as entries that are stored in the database; and which can’t be changed literally without adhering to specific conditions.
Cryptocurrency is created by using cryptography. It is a medium of exchange and it is stored in the blockchain to create and approve any transfer of funds.
6 Basic fundamental features of cryptocurrencies
If you would like to know what cryptocurrencies are all about, you should know the fundamental features of cryptocurrencies briefly.
Let’s have a look –
- Cryptocurrencies are very much secure: Cryptocurrencies are secured by the cryptography codes. And they are locked by using a public cryptographic system. Every owner has their own private key. Other than the owner, no-one can get access to that private key. And cryptography used in creating this private key is so strong and the numbers are so huge, it’s almost impossible to break. That’s why cryptocurrencies are pretty secure and can be used without any fear of security.
- Transactions in cryptocurrencies are irreversible: You may say one of the disadvantages of cryptocurrencies is the irreversibility of transactions. When you use cryptocurrency like bitcoin, you need to give a confirmation before the transaction ever occurs. Once you give the confirmation, the transaction would be initiated. And no-one in the world would be able to stop that transaction, yes not even the Satoshi Nakamoto himself (or themselves). So, to deal with the transactions in cryptocurrencies, you need to be much more responsible before you confirm a transaction.
- There is no need for permission: While using cryptocurrencies, you don’t need to take permission from anybody. That means there would be no gatekeepers who will stop you from using the currency. All you need to do is to install free software and use it. This specific feature gives users a lot of freedom and they are able to use cryptocurrencies as they wish.
- Super-fast: Another great feature of cryptocurrencies is that they are super-fast. If you initiate a transaction, it is immediately caught up in the network and it is confirmed just within two minutes of time.
- These currencies don’t care about the specific location: Cryptocurrencies don’t care at all about the owner’s physical location. You can send cryptocurrency to your relative down the street or you can send the same to a friend living in another part of the world. And the transactions would take the same time and would be treated similarly.
- Real world identities can be hidden: Many people are scared to death when they need to share their real identities online. In the case of cryptocurrencies, you don’t need to provide your real-world identities. All you need to have an address that has around 30 characters. And you would be able to access the benefits of cryptocurrencies easily.
Top 5 Cryptocurrency
If you would like to deal with cryptocurrencies, it’s important that you.
Below are the Top 5 Cryptocurrency
#1 – Bitcoin
Bitcoin is everywhere these days and is currently number 1 in the list of Top 5 Cryptocurrency. You can learn more about Bitcoin – advantages disadvantage here.
#2 – Ethereum
Ethereum is second in the list of Top 5 Cryptocurrency. This is one of most talked about cryptocurrencies in present times. After bitcoins, ethereum has taken the place of largest growing cryptocurrency in the world. In the year 2017, ethereum has grown around 500% whereas bitcoins have grown around 1000%. Ethereum is created by Vitalik Buterin who is one of most sought after names in cryptocurrency industry. Learn more about Ethereum
#3 – Litecoin:
This is another cryptocurrency and a possible alternative to bitcoin as is among the Top 5 Cryptocurrency. It was created in the year 2011. And it was created by Charlie Lee. After bitcoin, it is the third cryptocurrency in terms of time and duration of cryptocurrencies. Even if litecoin didn’t get as much attention as it deserves, here is the most important that needs our attention – litecoin is much faster than bitcoin and the transaction fees are almost nil. Learn more about Litecoin
#4 – Ripple
Ripple works similar to Bitcoin or Etherium. You can send the payments in real time using distributed financial technology. The difference here is that it works with banks and allowing sending of money. Learn more about Ripple
Find out the differences between Ripple vs Litecoin
#5 – Dash
Dash was launched in 2014 and has grown to become one of the largest peer to peer network of master nodes. As a result, Dash is able to provide more capacity to users as well as the secure environment. Learn more about Dash
Practical uses of cryptocurrencies
It doesn’t make sense to know about something if you don’t know any practical use of that particular subject. This is same for cryptocurrency as well. That’s why let’s have a look at some of the practical use of cryptocurrencies –
- Donation: Do you worry about making a donation, but not reaching the right receiver? With the use of cryptocurrency, you would be able to make the donation without any hassle since cryptocurrency is a peer to peer network and is very secure and fast.
- Higher education: The University of Nicosia is offering higher education and they are the first university in the world to accept bitcoins as fees. So if you have your bitcoins ready, you can get a higher education quite easily.
- Travel: If you want to travel the world and all you have are bitcoins, then be ready for the treat. Go to travel websites and book your flights, cars, cruises.