what is cryptocurrency :- In today’s article we will discuss what is cryptocurrency? and cryptocurrency meaning. also know detail information about cryptocurrency. cryptocurrency meaning Read this article in full. So that you can get complete information about cryptocurrency properly.
Nowadays we see digital transactions happening everywhere. Everything is going digital. Earlier, post, bank etc. were used to send money. But in today’s digital age, mobile applications are used to send money. Which has applications like PhonePe, GooglePay etc. But we can make more money using new technology.
That new technology is called cryptocurrency. Any country in the world needs currency to facilitate its transactions. So that transactions can be done easily using it. So every country has its own different currency. Every country has different currency. For example, India’s currency is Rupee, US Dollar, Europe’s Euro, Japan’s Japanese Yen, etc. This currency is a physical currency, which we can use and see in any place or country according to the rules of that country.
But cryptocurrency is a bit different. You cannot see or touch that currency. Because crypto currency is not physically printed. Hence it is called virtual currency. Cryptocurrencies have been growing exponentially over the past few years.
Cryptocurrency Meaning and Defination
Cryptocurrency means virtual currency. Cryptocurrency means Virtual currency. Cryptocurrency is an independent currency and has no owner. Cryptocurrency is currency created using computers. The first Bitcoin was created in 2009 by Satoshi Nakamoto. Using this we can send money to any person in the world.
Unlike the Rupee, Dollar, Euro, Japanese Yen or other currencies, this currency is not the currency of any country or any government. A cryptocurrency is a type of digital currency that utilizes cryptographic techniques. Primarily, it serves as a means to acquire various goods and services.
Money can be hidden very easily with the help of this currency. There is no need to visit any bank or other government institution for its use. So your money can be easily hidden with the help of cryptocurrency. This digital currency works in “PEER TO PEER Electronic” mode. It can be utilized with the assistance of the internet.
Types of cryptocurrency
Bitcoin is the world’s first cryptocurrency. In 2009, a man named Satoshi Nakamoto published a white paper online. However it was later revealed that Satoshi Nakamoto was not the man’s real name.
Even today no one knows the true name of the creator of Bitcoin. At the time, no one knew how much Bitcoin would be used today. Bitcoin is a digital currency, used to buy things online or send money to anyone. It is a decentralized currency and no government or any country owns it.
Litecoin was launched as an alternative to Bitcoin. In 2011, Litecoin was introduced as a viable alternative to Bitcoin. Similar to other digital currencies, Litecoin operates as a decentralized, open-source payment network, devoid of any central government authority. It is a peer-to-peer cryptocurrency and software project, developed by Charlie Lee, an employee of the renowned company, Google.
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Difference between Bitcoin and Litecoin:–
1) It is believed that the fastest transaction can be done with Litecoin.
2) Bitcoin has a coin limit of 21 million and Litecoin has a coin limit of 84 million.
3) It works on different algorithms, Litecoin is working on “Script” and Bitcoin is working on “SHA-256”.
Ethereum was created in 2015. Ethereum is a type of cryptocurrency. Which is a platform based on blockchain technology that is open source. Like other blockchains, Ethereum has an underlying cryptocurrency called Ether (ETH). ETH is a digital money. If heard about Bitcoin, Ethereum includes many features. The aforementioned entity is entirely digital in nature and possesses the capability to be expeditiously transmitted to any individual across the globe. Ethereum supply is controlled by any government or company. It is decentralized. People around the world use ETH to make payments.
Ripple was released in 2012. which serves as both a cryptocurrency and a digital payment network for financial transactions. It is a global settlement network designed to create a fast, secure and low-cost method of transferring money.
Ripple facilitates the exchange of various currencies, irrespective of their type. From USD and Bitcoin to Gold and EUR and connects banks to other currencies. Ripple also differs from other types of digital currencies in that its primary focus is not on person-to-person transactions, rather than moving large amounts of money.
5. Bitcoin Cash
Bitcoin Cash is a form of digital currency. Which is designed to improve the specific features of Bitcoin. Bitcoin Cash increased the block size, allowing for faster processing of more transactions.
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ZCash is a digital currency. The aforementioned was constructed utilizing the initial Bitcoin codebase. The currency was developed jointly by scientists from MIT Johns Hopkins and other respected academic and scientific institutions. It was built on a decentralized blockchain. The main feature and uniqueness of ZeCash is its strong emphasis on privacy. Users can send and receive ZeCash without revealing the sender, recipient or the amount transacted.
Monero is a currency that is characterized by its security, privacy, and unpredictability. It is a cryptocurrency that was introduced to the public in April of 2014 as an open source platform. Despite its relatively recent inception, it has garnered significant attention from cryptography experts and enthusiasts alike.
The development of this cryptocurrency is completely donation-based and community-based. Monero is a currency launched with a strong focus on decentralization and scalability, and enables total privacy using a special technique called Ring Signature. So this currency became more and more popular.
Jed McCaleb founded the open-source network Stellar and created the original Stellar currency in 2014. Stellar is an intermediary currency, which facilitates currency exchange. A Steller user is allowed to send any of their own currency to someone in a different currency.
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Advantages of cryptocurrencies
1) Cryptocurrency is safer than normal digital payments.
2) It charges very low transaction fees.
3) It has a high chance of fraud.
4) Different algorithms are used while creating cryptocurrency, so the account remains very secure.
5) It has no government control, so cryptocurrency market runs 24×7×365.
6) You can send money to anyone in the world with fast speed through cryptocurrency.
Disadvantages of Cryptocurrencies
1) Cryptocurrency does not have any kind of rules and regulations. Every country has different regulations regarding cryptocurrency, so there is a lot of potential for fraud.
2) Once a transaction is made through cryptocurrency it is impossible to reverse it. Due to the absence of a provision for payment reversal, the possibility to undo the transaction is not available.
3) Cryptocurrencies are not stable. Because the price of Bitcoin is going up and down every day. So sometimes profit and sometimes loss.
4) In this daily theft, fraud, hacks and misappropriation of money are going on very strongly.
5) Cryptocurrencies are not controlled by any government or bank, so if you ever get cheated, you have no one to turn to.