Cryptocurrency or Crypto currency is one of the world leading investment and the hottest opportunity currently available today.
But beyond the noise and press release, a lot of people have very limited knowledge about cryptocurrency and only a few, are aware that it emerged as a side product of another invention.
Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and perhaps the most important cryptocurrency, (which we are going to find out soon) never intended to invent a currency.
Satoshi said he developed “A Peer-to-Peer Electronic Cash System.“ in his announcement of Bitcoin during the late 2008. His goal was to invent something a lot of people failed to create before digital cash.
After seeing all the centralized attempts at creating digital cash fail, Satoshi tried to build a digital cash system without a central entity. Like a peer to peer network for file sharing. This decision however, became the birth of cryptocurrency.
Cryptocurrency is a digital asset designed to work as a medium of exchange, wherein individual coin ownership records are stored in a ledger existing in form of computerized database, using strong cryptography to secure transactions records, control creation of additional coins and to verify the transfer of coin ownership
In a lay man term, cryptocurrency is a virtual or digital currency designed to work as a medium of exchange. “A Peer-to-Peer Electronic Cash System.“
It literally does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.
When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Cryptocurrency leverages block chain technology to gain decentralization, transparency and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the blockchain makes cryptocurrencies immune to government controls and interference.
Cryptocurrencies can also be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.
Looking at the mechanism ruling the databases of cryptocurrencies. A cryptocurrency like Bitcoin consists of a network of peers. Every peer has a record of the complete history of all transactions and thus of the balance of every account.
Only miners can confirm transactions. This is their job in a cryptocurrency-network. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.
Cryptocurrency involves Mining , and this is when a computer is used to solve a cryptographic puzzles in order to build blocks. Miners are rewarded with the cryptocurrency.
Bitcoin was the first cryptocurrency ever created and over 6000 alternate coins have been released since the creation of Bitcoin. While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
A list of the top 20(s) According to their ranks includes: Ethereum (ETH), Ripple (XPR), Tether (USDT), Chainlink (LINK), Bitcoin Cash (BCH), Litecoin (LTC), Libra, Cardano (ADA), EOS, Binance Coin (BNB), Monero (XMR), Bitcoin SV (BSV), Cryto.com coin (CRO) Tezos (XTZ), Stellar (XLM), Tronz (TRX), USD coin (USDC), Unus Sed Leo (LEO), Cosmos (ATOM), and Neo.
However we would look at just two of the world leading digital currencies which have seem to be the most used. Bitcoin (BTC) and Ethereum (ETH).