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Our world is rapidly changing as a result of advancements in technology and allied fields.
One area that has been greatly impacted by this advancement? Money and financial transactions; commerce and associated matters.
Cryptocurrency (or “Crypto”), today, has become the future of money. The compelling force and widely accepted concept behind the proponents of this non-traditional medium of exchange is to have an immovable, uncensorable, and decentralized medium of value exchange free of the endemic problems within traditional financial systems and governments.
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What is cryptocurrency?
A cryptocurrency, crypto-currency, or crypto is a collection
of binary data which is designed to work as a medium of exchange wherein
individual coin ownership records are stored in a ledger which is a computerized
database using strong cryptography to secure transaction records, to control
the creation of additional coins, and to verify the transfer of coin ownership.
Some crypto scheme use validators to maintain the cryptocurrency. In
proof-of-state model, owners put their tokens as collateral. In return, they
get authority over the token in proportion to the amount they stake. Generally,
these token stakers get additional ownership in the token over time via network
fees, newly minted tokens or other such reward mechanisms.
Cryptocurrency 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 a central bank digital
currency (CBDC). When a cryptocurrency is minted or created before issuance or issued by a single, it is generally considered decentralized. When
implemented with decentralized control, each cryptocurrency works through distributed ledger technology,
typically a blockchain, that serves as a public financial transaction database.
Bitcoin, first released as open-source software in 2009, is
the first decentralized cryptocurrency. Since the release of Bitcoin, many
other cryptocurrencies have been created. (Source:
Wikipedia.org)
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There are so many cryptocurrencies that have come into existence after Bitcoin, and more are still coming up…As of September 2021, there are more than 6,500 cryptocurrencies in existence! Some of them are: Ethereum(ETH), Litecoin(LTC), Cardano(ADA), Polkadot(DOT), Bitcoin Cash(BCH), Stellar(XLM), Chainlink(LINK), Binance Coin(BNB), Tether(USDT), Monero(XMR), Ripple(XRP), and a host of others.
The strength of a cryptocurrency is measured by these:
following or trading volume, and immense popularity among dedicated communities of
backers and investors.
Dogecoin a little-known coin came into global prominence and
high value when one of the richest men on earth, Elon Musk (CEO of Tesla and
other global brands), promoted the token on social media.
Cryptocurrency has experienced exponential growth in the
last decade, with new innovations and a collective market cap of nearly US$2
trillion!
The future of money is here now, get onboard the cryptocurrency
train to secure your financial future!
