Cryptocurrency is an internet-based medium of exchange that uses cryptographical functions to conduct financial transactions. It leverages blockchain technology to gain decentralization, transparency, and immutability. The first cryptocurrency to capture the public imagination was Bitcoin, launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto.
Abstract
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. A decentralised currency can be transferred from one individual to another without intermediaries such as banks. Cryptocurrency is a revolutionary digital asset that has gained popularity among investors, traders, and the general public in recent years.
What is Cryptocurrency?
Cryptocurrency is a digital currency, which means it’s stored electronically. It isn’t controlled by a government or central bank but rather by private individuals who use it to buy and sell goods and services online.
Cryptocurrency has value because people believe it has value. This can be compared to traditional currencies such as the U.S. dollar or British pound sterling, where there are fixed supply limits on how many can be created in each country at any given time (i.e., only so many notes are printed each year). However, unlike these traditional currencies, where governments control how much money gets printed for sale onto their markets, cryptocurrency doesn’t have such limits placed upon its supply as traditional fiat (government-backed) currencies do. It’s essentially unlimited in terms of quantity because there aren’t any restrictions placed on how many coins can exist within its ecosystem.
Cryptocurrencies and blockchain technology
Cryptocurrency is a digital currency that uses cryptography to secure transactions and control the creation of additional units. The decentralized, distributed, public ledger known as the blockchain permanently records all transactions.
Satoshi Nakamoto first proposed the blockchain in 2008 and implemented as Bitcoin at the beginning of 2009. It’s since grown into an open-source technology adopted by hundreds of different cryptocurrencies, including Ethereum and Ripple (XRP).
History of Cryptocurrency.
The first cryptocurrency to capture the public imagination was Bitcoin, launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto.
Bitcoin is a digital asset that can be exchanged for other currencies, products and services. No government or central bank issues it; it has no intrinsic value (no “store of wealth”). However, it does serve as a medium of exchange – just like dollars do today.
For Bitcoin transactions between two parties, they must agree on a method for exchanging money that uses cryptography rather than relying on trusted third parties such as banks or governments.
Adaption of Cryptocurrency.
As of September 2017, there were over 1,100 cryptocurrencies; the two most prominent were Bitcoin and Ethereum. The value of all cryptocurrencies combined surpassed $140 billion in May 2018.
Bitcoin remains the most popular cryptocurrency, with a market cap of $127 billion on May 21st, 2018 (the day before this article was published). It has been around since 2009 and is used primarily for purchasing goods and services online or in person with cash; however, it can also be used to buy other currencies like Litecoin or Dogecoin as well as physical items such as real estate or cars/trucks/motorcycles, etc.
Ethereum was launched in July 2015 by Vitalik Buterin after he saw that Bitcoin had failed as a functional currency due to its slow speed compared with what people wanted from their money: fast transactions! So he created Ethereum, which would allow people looking for faster payments than Bitcoin to use this new blockchain technology and their existing wallets already downloaded onto their phones or computers, just like how we use Google Drive today! This means anyone interested could join without having any technical knowledge required whatsoever!
Cryptocurrency Mining.
All cryptocurrencies are maintained by a community of cryptocurrency miners who are members of the general public who have set up their computers or ASIC machines to participate in the validation and processing of transactions. The mining process involves solving complicated math problems using computers, which are rewarded with new cryptocurrency for supporting the network with computing power.
If you’re preparing notes about cryptocurrency, your takeaway should be a summary of the article (the first sentence). You must write this up, so people know what they’re getting into when they read it.
Benefits of Cryptocurrency
One of the main benefits of cryptocurrency is its decentralized nature, which means that it is not controlled by any central authority or government, making it immune to the influence of inflation and corruption. Blockchain technology ensures that transactions are secure and transparent, thereby reducing the risk of fraud and hacking. Cryptocurrency also allows for fast and low-cost transactions, making it an attractive option for international payments.
Moreover, cryptocurrency provides financial inclusion to individuals who do not have access to traditional banking systems. It is estimated that over 1.7 billion adults worldwide do not have access to a bank account, and cryptocurrency can provide them with alternative payment and financial services.
Drawbacks of Cryptocurrency
Despite the benefits of cryptocurrency, there are also some drawbacks. One of the main criticisms of cryptocurrency is its volatility. The value of cryptocurrency can fluctuate rapidly, sometimes in hours or days, making it a risky investment. Moreover, the lack of regulation and oversight in the cryptocurrency market has led to instances of fraud and scams, which can be challenging to recover from.
Another drawback of cryptocurrency is its association with illegal activities, such as money laundering and purchasing illicit goods on the dark web. Although cryptocurrency is not inherently unlawful, its anonymity and lack of regulation make it attractive to criminals who wish to avoid detection.
Conclusion
In conclusion, I think it’s important to know the difference between cryptocurrencies and altcoins. While there is no definitive definition, I would say that cryptocurrency is an internet-based medium of exchange that uses cryptographical functions to conduct financial transactions. Altcoins are the offspring of Bitcoin and other cryptocurrencies like Ethereum or Litecoin.
References:
- https://www.oswego.edu/cts/basics-about-cryptocurrency
- https://blockgeeks.com/guides/what-is-cryptocurrency/
- https://www.kaspersky.com/resource-center/definitions/what-is-cryptocurrency
- https://en.wikipedia.org/wiki/Cryptocurrency
- https://www.collegelib.com/cryptocurrency/
- https://www.investopedia.com/terms/c/cryptocurrency.asp
- https://www.forbes.com/sites/sarahhansen/2018/06/20/forbes-guide-to-cryptocurrency-exchanges/
- Milagro Crypro libraries
Collegelib.com prepared and published this curated seminar report on Crypto Currency for Engineering degree students’ seminar topic preparation. Before shortlisting your topic, you should do your research in addition to this information. Please include Reference: Collegelib.com and link back to Collegelib in your work.