There is a massive outbreak in the number of users in the technology and digitalization realm as people all over the globe rely on this extensively. This transition is what has resulted in the invention of cryptocurrency and bitcoin. The invention and existence of these two happened merely by serendipity in 2009, by Satoshi Nakamoto who developed the bitcoin with the motive of introducing a new electronic cash system that uses peer to peer network to prevent double spending. It is also a decentralized digital cash system which does not require a server as such ,but requires absolute consensus amongst its peers, failing which the block chain of events is broken. This is what invoked the concept of having a cryptocurrency.
A cryptocurrency is a medium of exchange created and stored electronically in a block chain using cryptography methods which enables high security and privacy .It is intangible and can’t be redeemed for other valuable assets in return. The cryptocurrency functioning solely depends on the miners as they are the one’s who confirm the transactions and propagate it in the network. In return they are awarded a unit of the cryptocurrency . The fact that anyone can be a miner poses potential risks of misusing this privilege, but this is avoided by the proof of work technique. This is a mathematical puzzle which is solved by the miner including a lot of hard calculations and algorithms to decipher. The miner who deciphers the puzzle first, gains a unit of the cryptocurrency. This is part of the consensus which cannot be broken by any peer.
The pros of cryptocurrency are that it is irreversible, pseudonymous, fast, secure and permission less. Cryptocurrencies have the spotlight on them and have set a new trend in the market globally. People are immensely fascinated and enthusiastic about it.
Bitcoin was the first decentralized cryptocurrency that came into existence around 2008-2009 invented by Satoshi Nakamoto. The bitcoin is used as a global means of payment and is majorly used in the dark web and ransomware. Bitcoin has seen a drastic increase in it’s price in the past 7 years. It’s present worth is about 650 dollars or more and the number of users have shot up to 2,00,000 a day . The bitcoin is the leader of the cryptocurrency world with ethereum, ripple and litecoin trailing behind.
There are many apps which act as interfaces in buying these currency. The prominent apps being coin base and block chain. These apps allow exchange of cash for a bitcoin in return. The block chain acts like a ledger in the digital world which records every valuable transaction. The fact that it is incorruptible, robust and transparent make it all the more trust worthy and reliable. The block chain comprises of various node networks .These nodes act as voluntary administrators in order to ensure a decentralized network. In return, they are provided with a bitcoin as remuneration for working on solving complex math puzzles and deciphering codes.
All these factors and components are what govern the cryptocurrency world. The introduction of cryptocurrency has revolutionized the whole economy and its outreach has left everyone spellbound. The value of the bitcoin cryptocurrency reached its pinnacle in 15th December 2017 with a value of 17,900 dollars. The price has been seeing fluctuations post this phase of its highest growth. The potential of cryptocurrency in the economy is still abundant and plays a very pivotal role in the economy on the whole.