Advertisement Product description:When Satoshi Nakamoto invented Bitcoin in late 2008, he never imagined that crypto currency would become such a raging concept in the future. While it has taken the world by storm, the concept still remains a mystery for the majority of people.
Originally invented as an electronic cash system to support transactions among peers, crypto currency today is applauded as the most potential new age currency. After many failed attempts to build decentralized digital cash system, Satoshi found that digital cash could be exchanged through consent without a central authority. In a decentralized network, every peer has a list containing all the transactions to confirm their validity in future. If the peers disagree about even one single, negligible balance, everything is broken. They need an absolute consensus.
Since a decentralized network lacks a central authority, cryptocurrency needs a mechanism that prevents its abuse. Satoshi made the rule that the miners (primarily, anybody can be a miner), should invest some of their computer’s work to be eligible for this task. It’s like solving a cryptologic puzzle to build a block that you can add to the block chain. As a motivation, he is awarded some Bitcoins once the transaction is confirmed. This is how valid Bitcoins are created. You can create only a particular amount of cryptocurrency in a given time.
What Is Cryptocurrency?
Basically, cryptocurrencies are entries in decentralized consensus-databases. Cryptocurrencies are created through using encryption techniques. Taking away all the noise, just consider cryptocurrencies as entries in a database that can’t be changed without satisfying certain conditions.
Definition
Cryptocurrency is a mode of exchange, generated and stored automatically in a block chain through cryptography to manage the formation of financial units and to confirm the transfer of money. Bitcoin is one of the popular cryptocurrencies of today.
Properties Of Cryptocurrency That You Need To Know
To comprehend the concept of Cryptocurrency, let’s take a look at its properties:
• Irreversible
Once the transaction is confirmed, it can‘t be undone, by any means. It is done forever; no matter if you send money to a trickster or it is robbed from your computer. There is no reversing whatsoever.
• Not connected with real world personalities
There is no connection between the transactions and real world identities. Bitcoins is an address of around 30 characters. While you can look at the transaction flow, it is impossible to relate the real world character of the user to that address.
• Instant global access
The transaction is instantly propagated and confirmed in the network. Since a global network of computers is involved, you can send bitcoin to your next door neighbour or to a distant user. Geographic locations don’t matter.
• Secure
Cryptocurrency is encrypted and stored through a private key system. If you have the private key, you can make the transaction. Robust cryptography makes it impractical to break this system.
• Use at your will
Since there is no central authority, you can use cryptocurrency at your will. Just download and install the software and you can send and receive cryptocurrencies. No permission needed.
GDC coins forays into the world of the digital economy to help people move to a globally accepted payment or exchange mode through cryptocurrency. Secured by an infallible system, cryptocurrency is founded on the blockchain scheme that renders it impenetrable for hackers. |