Important things about cryptocurrency and how cryptocoins are different
It is a digital money with peer-to-peer exchange system without any central bank or entity.Powered by Blockchain these are based on the principles of cryptography.In simple words, cryptocurrencies are limited entries in the database which cannot be changed unless conditions are fulfilled. Totally free from control of any government or bank.
Properties of cryptocurrency transactions are:
(1) SECURE and ANONYMOUS
(2) IRREVERSIBLE and FAST
(3) DECENTRALISED and GLOBAL
HOW THESE WORK?
Miners make units of cryptocurrency via powerful computers and solving complicated mathematics. Virtually everybody can be a minor but there are some specific conditions.
After entering the private key let’s say a file named as “Rock gives X Bitcoins to Kane’; it will be broadcasted from peer-to-peer. Miner will confirm this transaction and there’s no point of turning back after confirmation and it will become a part of the blockchain.
TYPES OF CRYPTOCURRENCIES:
More than a 1000 types are available. Important ones are discussed here.
Launched in 2009 it remains the most popular and commonly traded to date. Satoshi Nakamoto was the founder and its market capitalization is about $230 billion USD. It was first to be launched; all other cryptocurrencies developed after it and are also referred as altcoins as a group.
2nd most commonly traded with a capital value of $68 billion. Somewhat more flexible than Bitcoin. It was split into two but it was the main influence for other cryptocurrencies to develop.
One of the least popular cryptocurrencies. Banks are interested in ripple. Developed in 2012, transactions other than crypto can also be done.
Similar but faster than bitcoin. With a total capital of around $5 billion, it is considered as smaller brother of bitcoin with innovations.
Cryptocurrency is making the history of the 21st century. With the promising trends, it had shown in recent years future appears to be more fast and wild. With the increased popularity and demand of cryptocurrencies, many new initiatives have been started like Bitcoin Cash and ICO.
Bitcoin Cash was launched in 2017 which also called fork of Bitcoin Classic. It allows the database size more than 1 MB leading to fast transactions.
ICO-Initial Coin Offering is more or less a fundraiser which invites the new users to invest in new projects.