What is Cryptocurrency All About?

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.