Cryptocurrency
Cryptocurrency is a type of digital currency used for payments. The word crypto refers to cryptographic techniques
or methods and several encryptions. It is a decentralized system that uses encryption methods to save and secure
data from unauthorized access. Cryptocurrency is based on three different technologies that are Blockchain,
Decentralization, and Cryptography. Blockchain technologies save and records data of cryptocurrency trades and
all the data stays in a secure location. Cryptocurrency uses cryptography to secure transactions and also to verify
transaction that has been made by the user. Cryptography also ensures the safety and security of the system to
prevent it from external authorities or unauthorized access.
The first form of cryptocurrency was eCash in 1983 developed by the American cryptographer David Chaum, later
he devise Digicash a cryptographic electronic payment method. After several years Satoshi Nakamoto created
Bitcoin a type of cryptocurrency and made it public to users on January 3, 2009. Bitcoin uses Blockchain technology
that eliminates the need for centralized authorized authorities.
There are different types of cryptocurrencies available but major types include payment, security, utility and
stablecoins. Cryptocurrencies are not related to the banking system and have the delegation of authorities unlike
centralized systems and have their unique way of payment system mainly Cryptocurrencies work in three major
ways as Mining Buying, selling and Transacting or investing. Cryptocurrencies are generated through the process
of mining for buying and selling cryptocurrencies various websites are available to users where they can sell or buy
cryptocurrencies.
There are several benefits of cryptocurrencies as it is based on decentralized systems which is more beneficial than
centralized systems in many ways. In decentralized systems such as cryptocurrencies, there is a delegation of
authority at levels whereas in centralized systems there is no delegation of authority. In cryptocurrencies there are
cost-effective transactions, the transactional costs while buying or selling will be minimal with the help of
cryptocurrencies. It is also safe and secure
