Definition:
A digital currency in which
encryption techniques are used to regulate the generation of units of currency
and verify the transfer of funds, operating independently of a central bank.
Meaning:
The word ‘crypto’ in cryptocurrency means secret, to hide something, or code language ‘currency’ means money so cryptocurrency is secret or hidden money. Cryptocurrency is a online digital transaction between 2 person where they send their money without involving or trusting the 3rd party. They don’t need anyone’s permission for giving their money to other person. They are their own boss no need to accept terms and conditions of the 3rd party.
The central bank or governments are the 3rd party for the normal paper money. We have to asked them and accept their terms and conditions to give money to the others.
Sending cryptocurrency hides the actual identity of a person. In order to send cryptocurrency, you only need the user id and password.
Story of a cryptocurrency:
In 1990’s many people try to create cryptocurrency but no one has succeeded but the one’s which was closest to cryptocurrency system were :
- Digicash
- Hashcash
- B-money
In January 2009, Satoshi Nakamoto introduced bitcoin. Bitcoin is famous and was world’s first cryptocurrency. Satoshi Nakamoto was unknown to everyone no one knows him and suddenly in 2011, he was disappeared. After many years of invention of bitcoin people start taking interest in it and starts the transactions. There were six things in order to called cryptocurrency and they were:
- Digital money
- Peer to peer
- Global
- Encrypted
- Decentralized
- Trustless
Bitcoin have all these things, bitcoins transactions were only done in computer it is digital system, bitcoin was transfer from person to person, bitcoin was used globally, bitcoin is encrypted real identity of a person is hidden, bitcoin is decentralized every person is their own boss no one has to accept any terms and conditions in order to send bitcoin, bitcoin is trustless you don’t need trust any 3rd party.
Impact
of cryptocurrency:
Other upcoming cryptocurrencies
are making significant impacts as well. Beyond digital transactions, newer
projects are specifically focusing on helping the unbanked, making blockchain
technology more scalable, and providing functional interfaces.
As these and more cryptocurrencies continue to improve the finance sector, it won’t be long before our current financial infrastructure is a thing of the past.











