Cryptocurrency
is a type of digital money that is made encrypted and sometimes anonymous. It
is obtained through the process of generating units and conducting transactions
by encryption to secure process.
In other
words we can say:
“Cryptocurrency is a digital currency
in which electricity is converted into lines of codes”.
What is cryptocurrency all about?
Cryptocurrency
uses cryptography process: In which purchases and transfers are tracked by
legible information converted into uncrackable code. Transactions are secured
and new coins are generated with the help of cryptography. Bitcoin was first
crypto currency created ever in 2009 and by today more than 900 crypto
currencies have been developed.
History of Crypto currencies
First
cryptocurrency was Bitcoin which was discovered by Satoshi Nakamoto in 2009 and
it uses a cryptographic hash functions SHA-256 which is made by National
Security Agency United state.
To make
internet censorship more complicated, Namecoin was created in April 2011. After
Namecoin, in November 2011 Litecoin was introduced that used the scrypt instead
of SHA-256. This helped the people to mine for Litecoin without need of
purchasing heavy hardware which was used to mine Bitcoin. Litecoin got attention
in late 2013 and after that many coins were discovered and introduced in the
coin market.
How does Cryptocurrency Work?
Cryptocurrency
uses decentralized system to secure its users for storing and exchanging money
online without need of going banks or using name etc. They uses Blockchain for transaction,
Blockchain has record of all transactions done and hold by cryptocurrency
holders.
Cryptocurrencies
have units and sub-units which are created by process called mining. In mining,
complicated mathematical problems are solved by computer power and thus coins
are generated. You can also buy, store and sell cryptocurrencies from broker
and can store them in online wallet.
Most common Cryptocurrencies
Here is the
list of most common cryptocurrencies:
Bitcoin:
It is the
first and most commonly used cryptocurrency. It was developed by Satoshi
Nakamoto in 2009. There is mysterious Figure about the development of
Blockchain. Bitcoin has market capitalization of $45 billion in July 2017. .
Ripple:
Ripple is
another most commonly known cryptocurrency and was introduced in 2012. It can
be used for variety of transactions instead of only crypto currency. Market capitalization
of Ripple is of $6.3 and was accepted widely and used by many bank including
UBS.
Litecoin:
Litecoin is
another major cryptocurrency and developed in 2013 and was widely accepted by
people. Litecoins is almost similar to Bitcoins but it has developed more
fastly than that of bitcoins. Its modifications over the time include fast
payments and it allows more transactions than any coin. Its total market
capitalization is $2.1 billion.
Ethereum:
Ethereum is
the second most popular cryptocurrency and has total market capitalization of
$18 billion in July 2017. It is currency token which is used in ethereum
blockchain. Journey of ethereum was turbulent as it was hacked in 2016 and had
split in to two currencies. Its value had reached up to $400 but also crashed
into as low as 10 cents.
