05
Jan

Cryptocurrency – Next Generation Digital Currency

cryptocurrency

What is Cryptocurrency?

Cryptocurrency is a digital asset designed to perform the secured transactions using cryptography. Some popular Cryptocurrencies are Bitcoin & Ethereum. The digital currencies can be exchange & transfer from peer to peer without any intervention of Government, Financial Institutions & Banks. The transactions are validated by the process of mining who record the transactions in the Blockchain and prevent the double spending Cryptocurrency. It is used to store in the Digital Wallets that exist on the Blockchain. The Digital Wallets is accessible from anywhere in the world.

Most Common Cryptocurrencies

1. Bitcoin: It is the first Cryptocurrency in the world. It was created by Satoshi Nakamoto in 2009.

2. Ethereum: It is the programmable currency that allows developers to build distributed apps and technologies. It does not support Bitcoin.

3. Ripple: It is the famous Cryptocurrency which doesn’t use a Blockchain to reach network-wide transactions. It is faster than the Bitcoin & makes it vulnerable to hacker attacks.

4. Litecoin: It is the Cryptocurrency created as the ‘digital silver’. It is the fork of Bitcoin that generate blocks 4 times faster & 4 times the maximum number of coins at 84 mln.

5. Bitcoin Cash: It is the fork of Bitcoin supported by the biggest Bitcoin mining company. It is the top five Cryptocurrencies in the market cap.

6. NEM: It is similar to the other Cryptocurrencies that work on the Proof of Work algorithm. But NEM also works on Proof of Importance algorithm. It requires users to spend certain amounts of coins in order to get new ones.

7. Dash: It is the two-tier network faster than Bitcoin in which the first tier is the miners that record the transactions and secure the network. The second tier includes the master nodes that enable the Private-send and Instant-send type of transactions.

8. IOTA: It is the ledger technology type Cryptocurrency is called ‘Tangle’. It needs the sender in the transaction that performs the Proof of Work to approve the transactions.

9. NEO: It is the contract network that works on the financial contracts. It is similar to the Ethereum. It was developed in China.

10. Monero: It is the Cryptocurrency that uses ring signature technology which is secure, private and untraceable.

How Does Cryptocurrency Work?

To understand the working of the Cryptocurrency first, you have to install the coin Wallet on your mobile phones or computer. After the installation, it will generate your first coin address and can create more whenever needed. You can disclose the coin address to your friends so that you can perform the digital transactions easily. The Cryptocurrency works in three simple steps:

 

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Balances – Blockchain

The Blockchain is the public ledger in which confirmed transactions are saved easily. The currency coin wallet calculates the new transactions & spendable balances which will be verified with the spender coins. The integrity of the Blockchain worked with the cryptography. The Blockchain is the world’s leading software platform for the digital assets which offer large productions of the Blockchain platform all over the world. It is the list of records which are secured & linked using cryptography. It is the digitalized & decentralized public ledger of all Cryptocurrency transactions

Transactions- Private Keys

The transaction is the transfer of the digital money between the coin wallets that get updated in the Blockchain. The secret information kept in the coin wallets is called private key. It is used to sign the transactions as the mathematical proof to check that the money has come from the wallet owner. The Signature prevents transactions from alteration. All transactions are broadcast among the users only and give the network process confirmation called mining.

Processing- Mining

Mining is the distributed system which is used to confirm the waiting transactions by including them in the Blockchain. It enforces the new chronological order in the Blockchain and allows different mobile & desktop computer to accept the state of the system. All the transactions must be packed in the block and process by strict cryptographic rules that will be verified by the network. These rules prevent the previous block from being modified. Mining also prevents any individual from adding new blocks in the Blockchain. In this way, no individual can control and include any data in the Blockchain.

Cryptocurrency Market Cap

NameMarket CapPriceVolumeCirculating SupplyChange (24hrs)
Bitcoin$2,60,69,33,68,680$15,533.10$22,13,95,00,00016,783,087 BTC2.93%
Ripple$123,244,715,416$3.18$7,775,260,00038,739,144,847 XRP *-12.83%
Ethereum$102,329,146,759$1,057.34$7,302,490,00096,779,793 ETH10.79%
Bitcoin Cash$40,319,588,443$2,386.59$4,626,540,00016,894,225 BCH-3.47%
Cardano$28,433,181,176$1.10$503,749,00025,927,070,538 ADA *11.09%
TRON$15,453,455,159$0.235040$4,482,870,00065,748,192,476 TRX *65.15%
NEM$14,986,799,998$1.67$219,667,0008,999,999,999 XEM *11.70%

Cryptocurrency Online Exchange Platforms

The best place for buying Crypto currencies is to open wallet with the large Cryptocurrency exchange websites. To open an account, the user needs to provide official documents and ID. This type of wallet is also known as the online wallet. There are different ways to purchase Cryptocurrency:

  • Coinbase: It is the most popular Bitcoin online exchange in the US.
  • Anycoindirect: It is the European Cryptocurrency online exchange wallet
  • Cex: It allows to buy Bitcoins with bank transfer & credit cards.
  • Shapeshift: It allows users who hold a portfolio of different Cryptocurrencies.
  • LocalBitcoins: It is the person to person Bitcoin exchange.
  • Kraken: It is the US-based Cryptocurrency exchange platform.
  • Bitrush: It is the European Cryptocurrency platform
  • Bitstamp: It is the Cryptocurrency exchange platform in Europe
  • Gemini: It is the Cryptocurrency exchange and trading platform.

Why Use Cryptocurrency

The Cryptocurrency offers Instant transactions, no account freezes, no waiting for checks to clear, no international wire transfer fee, no chargebacks, always open, no waiting for an account to be approved, no waiting for business hours for transactions, open account in a few seconds, no bank account needed, poor people can use it, no printing press, no hyperinflation, no debt limit votes etc a lot more it gives. This sounds like the best payment system in the world!

There are many other important reasons to use Cryptocurrencies are:
  • Payment freedom is one of the important reasons to go with the coin technology. The absence of the centralized governing body indicates that when you send coins to someone, you can easily send money directly to their addresses within the day. Cryptocurrency offers global payment system that is secure, cheap and fast.
  • It has the lower risk for the merchants. Once the transaction is verified and recorded in the Blockchain, it cannot be reversed. This mechanism inhibits the frauds to conduct business online. The coin wallet can be used by anyone to expand its markets.
  • It has the transparent transactions service in which the owner can have the complete Bitcoin transaction history which is available in the Blockchain. The cryptographic secure protocol makes the coin difficult to be get manipulated by anyone.

Need a Cryptocurrency creation service which can store, share, send and exchange different Cryptocurrencies? Contact Ficode, for quality and reliable development services.

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