What is Cryptocurrency?
Cryptocurrency is a digital asset, which can be called as digital currency, alternative currency, or virtual currency designed to work as a medium of exchange that uses strong cryptography to secure financial transactions. WHAT YOU NEED TO ABOUT CRYPTOCURRENCY TECHNOLOGY.
Uses of Cryptocurrency
Cryptocurrency can be used to buy goods from online retailers; however not all merchants accept cryptocurrency. People are also known to have Bitcoin. Even though, cryptocurrency is yet to take its giant step towards being used as digital cash across used cryptocurrency as an investment like shares.
Cryptocurrency wallet address is necessary for user to send and receive digital currency, by monitoring their balance.
Types of Cryptocurrencies
Was introduce in 2009 by under the alias Satoshi Nakamoto, Bitcoin is the most known of all cryptocurrencies. Payment via Bitcoin is simple. In a transaction, the buyer and seller utilize mobile wallet address to send and receive payments. Other currencies are including; Litecoin, Zcash and Dash.
Other Major Cryptocurrencies
Litecoin: Begin in 2011, Litecoin have similarly functions to Bitcoin in that is also open sourced, decentralized, and backed by cryptography. Litecoin has a faster block generate rate and faster transaction confirmation.
Dash: Get going in 2014 as “Darkcoin,” Dash has since reinvented and offers more anonymity for the users due to its decentralized mastercode network.
Zcash: Launched in October 2016, Zcash is a relative newcomer in the space. However, there are claims that it is the first truly anonymous cryptocurrency in existence due to its employment of zero knowledge SNARKS, which involves no transaction records whatsoever.
Benefit of Bitcoin Technology
- Easy to Access: Because users can send and receive bitcoins with only a smartphone or computer, bitcoin is available to populations of users.
- Focus on Peer-to-Peer: The bitcoin payment system is completely peer-to-peer, meaning that users can send and receive payments to or from users on the network around the globe.
- Low in Transaction Fees for International Payments: Standard transfers and foreign purchases typically involve fees and exchange costs. Since bitcoin transactions have no intermediary institutions, the costs of transacting are kept extremely low.
- Remove of Banking Fees: While it is considered standard among cryptocurrency exchanges to charge so-called “maker” and “taker” fees, as well as occasional deposit and withdrawal fees.
- Mobile Payments: Like with many online payment systems, bitcoin users can pay for their coins anywhere once they have Internet access.
How Cryptocurrencies Can Help Global Economy and Build a Better Future
- Increment in Transparency of Transactions
Since all blockchain and cryptocurrencies transactions are automated and digitized, they are all tracked in a distributed ledger. The most part about it is that it cannot be manipulated by either people or companies, which greatly diminishes the risk of fraud and corruption.
- Reasonable Transaction Costs
The costs associated with the cryptocurrencies transaction are token. There is no need for employee wages, utility bills or rent to be paid, so these savings naturally modify into low transaction fees.
- Beneficial Climb in Economic Activities
An entire industry is built around cryptocurrencies and it’s held by institutions dedicated to monitoring all the digital coin exchanges taking place throughout the world. Bitcoin, the most famous of these cryptocurrencies, has already permitted many people and companies to develop and thrive.
- It’s Give More Power to Entrepreneurs
There’s never been a more prosperous time to do business than it is now, in the sense that blockchain technology and cryptocurrencies can help entrepreneurs receive payments in more currencies.