Crypto currency is also globally known as Digital Currency. Since this is the world of Technology and Science man has revolutionized his entire lifestyle reducing human labor and time consumption through the use of Computers and other Robotic devices. In recent years the advancement in the field of technology is Prodigious and Emerge of Crypto Currency is one of them. Crypto Currency is simply defined as the digital transaction system that is independent of the banks to ensure the transaction details.
In other words, it is the payment system that involves a transaction between twin divide without the involvement of the third person i.e. Banks, Central Agency, etc. It is a slightly updated version of the traditional payment system.
Brief History of Crypto Currency:-
As we all know every person around us is shifting towards Digital life. Some economist predicts that the traditional system of payment that involves Buyer, Seller, and Centralized body which ensure the transaction value or worth, will not meet the demand of society in the future.
So they purpose Digital Currency System or Digital system which is a decentralized system of the transaction between individuals. The cryptoCurrency was first devised in a 2008 paper published by Satoshi Nakamoto, a pseudonym group of persons. After his paper, the more innovative ideas plug out about Crypto Currency and it is successfully operating in different parts of the world for different purposes.
How Crypto Currency Works:-
It works using the Technology of BlockChain. Crypto Currencies are a form of digital currency that can be interchanged digitally for products and services. Blockchain is a system that involves hundreds of powerful Computers that manage and secure every kind of transaction. CryptoCurrency is generated by ‘Miners’. Miners get the reward in the form of BitCoins for every transaction they complete.
They also add new blocks to existing chains. The process of adding blocks to the BlockChain is how a transaction is processed in the system and how money moves around surely on BitCoins. Blockchain is the system that secures and manages transactions in the Crypto Currency. Miners also aid in halting the “double-spending” problem.
Mining process run using many computers. This computer solves complex mathematical problems and gives the result in 10 minutes for each transaction. Bitcoin was the first to arrive and then other Crypto Currencies surfaced Ethereum, Litecoin and Ripple came into being. Mining is the only way to release new Crypto Currencies into the Digital Payment System. The detail of every transaction in the system is stored in a “ledger”.
There are many copies of the Ledger and each person in the system has full access to the Ledger it means each transaction is visible to the entire community in the digital system. The advantage of this is that our transactions get more secured as compared with the traditional system in which we have no record of our daily transactions. This system of transactions does not consider any Government surety and it rules out all our traditional rules of the system.
There are many advantages of this system. Firstly, it is the decentralized payment system. Secondly, we don’t have to pay a large amount of tax on our huge transactions. As it does not bother Banks and other financial offices to keep records we have swift access to our money or value. Third, we can easily send and receive money around the globe at any time without any wait for 2-3 days.
Fourth, it is the most secured system as it does not compromise security. Many people thought it is insecure because hackers can hack the information of our account but we don’t neglect the fact that we have a ledger in our system which is accessible to everyone if someone tries to break the network we can easily find the fault and rectify it. It removes the unwanted steps of transactions and involves Peer-to-peer transactions.
Despite all these this system is a handicap because of the highly volatile nature of Crypto Currency and it is potential for large losses. Black market activity is also a worthy factor for its Recession at the International level. I believe this digital transaction method will sooner develop some technology to rectify all the flaws of the system and make it acceptable around the world.
We have a global economy and we are going to need a global Digital Currency. Crypto Currency is democratizing force for the world because it allows anybody with a cell phone to access financial services. As Crypto Currency gains acceptance at the local level and the government of any country in the world does not demarcate it illegally o in the upcoming years it may spread to every corner of the world and many people will start it or stain vestment in their business through Digital Currency.
I think Crypto Currency will be helpful to humanity as interphase been today. Moreover, Crypto Currency will bound us in ways that we wouldn’t bound before.
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