Last updated on July 26th, 2019 at 05:50 am
Crypto-Currency is one of the hottest trends in the online market. You may have heard a lot of people talking about Bitcoin, Ethereum, Litecoin, and thousands of other currencies in this evolving market. Prices of these coins are fluctuating every hour, every minute, every second.
So now the question arises:
What Is Crypto-Currency?
Cryptocurrency is a digital type of currency in this digital age through which a user can send and receive payments over the Internet. But the fun part about cryptocurrency is that it uses an advanced type of encryption technique that we call as cryptography.
Now cryptography is some complex code that protects our end to end transitions, which makes it more secure and reliable as these transitions do not take much of your time. This currency does not have any physical appearance that’s the reason we called it Digital.
What is Bitcoin?
Bitcoin is the biggest cryptocurrency in the market. Crypto-Currency actually took start from Bitcoin in 2009. So, we can call bitcoin the king of Crypto-currencies. After the release of this new currency in the market.
The crypto market exploded, and there were more than 4,000 other new digital currencies in the market now, but Bitcoin was greatest of them all. At early stages, bitcoin was not that expensive, but with the fraction of time its price arose to thousands of dollars, you heard it right thousands of Dollars ($$$).
In 2010 the price of one bitcoin was 0.003$ and guess what the price of one bitcoin today? It’s 12,000$, and it is still getting higher. Here is a graph of how the number of transactions increased in the previous years:
What is BlockChain Now?
The most basic definition of blockchain is that it is a list of transactions that anyone can view and verify. The Bitcoin blockchain, for example, is a record of every time someone sent or received bitcoin.
These list of transactions are mandatory for most of the crypto-currencies because it enables secure payments to be made between through people directly without any sort of verifier like a bank so fees are only made from one user to another with the help of a crypto address that is a hash type one line code which is basically the address of that person to which you want to send your payments.
Concept of Mining:
Now miners are those people who act as middlemen in this whole process of crypto money transfer. These people have highly powered computers loaded with heavy GPU’s, which they use to solve very complex computational math problems which occur in end-to-end transactions between two users.
These miners get a little bit of it as a transaction fee for completing the transaction successfully. When these miners solve these complex problems, they generate a small amount of new bitcoin that they keep for themselves. Secondly, these miners make bitcoin payment network more secure and more reliable. Here is an image of a bitcoin mining system:
Can you do Shopping through Cryptocurrency:
Cryptocurrency is not much acceptable throughout the world, but people and shopping sites are accepting it slowly. As this currency is not handled by the government and transactions made through this currency is hard to track, that’s the reason it is favorite of all hackers worldwide.
These hackers use this currency illegally to make payments on the dark side of the Internet. In the upcoming years, it is becoming possible that this currency will be accepted in most parts of the world as it is much secure and fast.