Cryptocurrency

  Since time immemorial, Currency has been an important part of lives. In the caveman era, they used the barter system. The barter system is one of the earlier forms of exchange. A barter system is the system of exchange where goods and services are exchanged directly for other goods and services. But the barter system lost its impact when a few of its flaws came to light. Flaws like :

• people's requirements need to coincide.
• There's no common measure of value.
• Not all goods can be divided or subdivided.
• Goods cannot be transported easily.

After the realization, (and several iterations later), Modern currency As we know it, came into existence:-

• 110 BC, an official currency was minted.
• 1250 AD, Gold plated florins were introduced.
• 1600 AD - 1900 AD, the paper currency gained widespread popularity.

After that Modern currency came which is :

• paper currency and coins.
• credit cards and digital wallets(like PayPal, Paytm, amazon pay, etc.).

All of these controlled by the banks and governments. And this means centralized regularity authority that how limited paper currency and credit cards.

       Imagine the example of doing an online transaction. 

          There is a person who sent the money from his bank account to another persons bank account.

Although this transaction was successful, there are several ways this could have gone wrong...

• A technical issue at the bank.
• The user's accounts were hacked.
• The transfer limits for the accounts were exceeded.

And That's why the future of currency lies with cryptocurrency.

     Imagine the transaction between two people in the future.

          There are person who sent the money to another person. both have the bits coin app then the notification asks him whether to be sure to ready to transfer the bit cuts if yes then processing takes place(here we authenticating the user identity, checking whether he has required balance to make the transaction) after that payment is received. All of this has in minutes and as simple .this is removed all the problem of modern banking there are no limits of the transfer of funds, their accounts can not be hacked, and there is no a centralized point of failures.

    As of 2020, there are more than 2,000 cryptocurrencies are available. Popular cryptocurrencies included:-

• Digital cash
• Bitcoin
• Zcash
• Ethereum 
• Monero

     Considering the current growth, there's going to be plenty more to come in the upcoming years.

  So, what exactly is cryptocurrency?

      A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange.

A cryptocurrency is quite similar to the real-world currency just it not have any physical involvement .it also uses in cryptography to activates us.

Features of cryptocurrency:-  

• There's a limit to how many units can exits.
• Easily to verifies the transfer of funds.
• Operating independently of a bank.
• Allows new units to be added only after certain conditions are met.
• Little to no transaction costs.
• 24/7 access to money.
• No limits on purchase and withdrawals.
• Freedom to anyone use.
• Internation transactions are faster.

What's "crypto" in cryptocurrencies?

Cryptography is a method of using encryption and decryption to secure communication in the presence of third parties with ill intent.

   Cryptography usually requires a computational algorithm (like SHA256), a public key ( that the user shares with everyone), and a private key ( which acts as a digital signature of the user.).

  There are major cryptocurrencies(Among the many) in the market Bitcoin and Ether.

Bitcoin:-  Bitcoin is a form of digital currency and is decentralized without a central bank. It uses blockchain to perform transactions on a peer-to-peer network. 

Ether:-Ether is a currency that's accepted in the Ethereum network. Ethereum works on blockchain technology to create an open-source platform to build and deploy decentralized applications.

Cryptocurrency: Bitcoin V Ether

The similarities between bitcoin and ether(unit of currency powered by Ethereum) are:

• They're the biggest and most valuable cryptocurrencies.
• Both of them use blockchain and mine currency using proof of work.
• widely used across the world.

The differences between bitcoin and ether are:-

  Bitcoin:-

• It is used to send money to someone.
• Bitcoin transactions are manual.
• It takes 10 minutes to perform a transaction.
• It is used as money, for real-world transactions
• There's a limit to how many bitcoins can exist 21,000,000.
• Used for transactions involving goods and services.
• It users an algorithm known as SHA256 for hashing(which is a process of obtaining the address of the block.).

   Ether:-

• It is used as currency in the Ethereum network.
• Transactions are manual or automatic.
• It takes about 20 seconds to finish a transaction
• Ether is used to power the Ethereum network and power real-life transactions.
• Ether is expected to be continuous but not expected to exceed 100,000,000.
• Uses blockchain to create a ledger that triggers a transaction when a condition is met.
• Ethereum uses the ethash algorithm for hashing.

What's the future of cryptocurrency?

• The conflict between regulation and anonymity.
• Futurists believe by 2030, cryptocurrencies would occupy 25% of national currencies.
• Increased acceptance by merchants and customers.
• It will continue to have a volatile nature.