A Cryptocurrency is a virtual asset designed to function as a mode of exchange wherein real coin ownership records are kept in a distributed ledger available in a virtual form of a computer database with strong encryption. This kind of asset was first conceptualized in 2008 by Vitalik Buterin, a person who worked as a developer for the Russian Government. After working as a developer for the said government, Buterin came to realize how important these assets are and how they can be made available for public use. He, therefore, designed a new kind of ledger that uses cryptography and distributed ledger technology, thus creating the first-ever Cryptocurrency. The name Cryptocurrency comes from the fact that all Cryptocurrency is essentially money, however with the power of the Internet and other forms of communication, the value of Cryptocurrency has grown beyond what it was originally designed to serve.
Several types of Cryptocurrency are available, including Virtual Currencies, Public Key Infrastructure (PKI), Distributed Ledger Technology (DLT), and Web Currency. Virtual currencies refer to those that do not need any actual commodity to back them up. An example of such a currency is Virtual Cash, also called WebMoney. Public key infrastructure (DHT) is the system that is used to facilitate secure cryptographic transactions. Distributed ledger technology or DVT is the same as what is used for accounting purposes in banking institutions, but it does not require a third party to guarantee the transactions.
With the help of such technologies, people can now transfer their money from one part of the world to another without the hassle of having to go through a bank or a broker. An interesting feature that Cryptocurrency has been the decentralized network effect. The network effect is where a particular currency is accepted everywhere, while another is not accepted at all. This means that there will always be a network of digital currencies that are available for anyone to use. This is the characteristic of peer-to-peer Cryptocurrency.
Unlike other forms of Cryptocurrency that rely on the strength of a specific currency, such as the US dollar or the Euro, the strength of Cryptocurrency is based on its usability and necessity rather than its value. Thus, the more widespread the use of Cryptocurrency, the more widespread the adoption of Cryptocurrency as well. This is an advantage because it means that Cryptocurrency’s uses will become the norm, rather than the exception.
The two major characteristics of Cryptocurrency that most people appreciate about it are the security aspect and the flexibility. For instance, with the help of bitcoin technology, an individual can make large transactions using his computer, even if it is located from anywhere in the world. He also does not have to carry out lengthy transactions as he would do if he were using a traditional currency. The other important aspect of Cryptocurrency is its ability to allow for flexibility in terms of the fees that one charges. There are several types of Cryptocurrency available, and they include Litecoin, Dogecoin, Peercoin, and Euro bit.
These are only a few of the available various varieties of Cryptocurrency, but the most popular right now are bitcoin and litecoin. The reason for this popularity is their relatively low price per coin, which makes it easy for users to start making transactions without having to wait too long. Another reason why these Cryptocurrencies are enjoying a surge in popularity is the fact that they are free from the influence of the corruptible politics that are present in certain countries. The governments of some countries prohibit public access to this type of Cryptocurrency. Thus, if you are interested in investing in Cryptocurrency, you may wish to consider getting into the peer-to-peer generation of Cryptocurrency, which is easier to understand and much more affordable.
