Does the word “Cryptocurrency” sound familiar? Have you heard it, seen it, read it at various places but still don’t know what it is exactly all about? Well, then join the gang. It is quite a common new-age phenomenon that everyone must be aware of.
Did you try but could not succeed in comprehending the phenomenon due to the technical jargons found in the explanations?
BLARROW TO THE RESCUE, ALWAYS!
Here, Blarrow presents the incredibly easy explanation to Cryptocurrency which includes everything you need to know about the same.
- Cryptocurrency: A new age-phenomenon
- Cryptocurrency mining
- The 2 well-known forms of cryptocurrency: Monero and Bitcoin
Cryptocurrency is a web-based mechanism of transaction. It uses cryptographical techniques to carry out monetary trade and exchanges. Cryptographical techniques are techniques used to convert original text into incomprehensible text and vice-versa.
Cryptocurrency: A new age-phenomenon
In the contemporary world, cryptocurrency has turned into a worldwide phenomenon. It is known to a great number of people and used by a million more. The main reason behind this sudden boom in popularity is because of the potential of this mechanism to become the fastest, least demanding, inexpensive, and most of all an inclusive method to carry out widespread transactions in the future. There is often a lot of confusion with regard to whether cryptocurrency is legal or not. Cryptocurrency is very much legal to buy, sell, send, receive and own in many parts of the world including countries like the USA, UK, and Australia, among others.
Specialists have often debated about the numerous ways in which cryptocurrency can address the deficiencies of our economy. Things like high charges, identity fraud, and extreme economic disparity are some of the few problems related to our financial system which can be solved with the official adoption of this mechanism.
Furthermore, cryptocurrency additionally gives fairness of chance, paying very little heed to where one was conceived or where one lives. As long as you have a cell phone and an internet connection, you can access it. Cryptographic forms of money can be sent legitimately between two individuals by means of private and open keys. These exchanges are usually carried out at negligible costs, thus giving the clients an alternative from conventional budgetary organizations which charge hefty amounts.
Cryptographic forms of money can possibly improve the lives of people by giving any two individuals access to this secure mechanism of virtual transfer of cash legitimately, without including a monetary organization or government. This will mean greater balance of opportunities for those individuals who lack access to conventional banking services. Moreover, use of the Blockchain principle in this mechanism helps in maintaining discretion especially with regard to the client’s important information.
Cryptocurrency mining is a very important component of this mechanism. It is a process of confirming other people’s transactions with the help of a computer and then adding them to the Blockchain, thus, receiving cryptocurrency in return. One doesn’t need much to become a miner. Just a computer with an internet connection. However, it is important to note that mining is not always profitable. It depends on a number of factors:-
1)the speed of your computer
2)the cost of electricity in your area which may result in you spending more on mining than you earn back in cryptocurrency.
The 2 well-known forms of cryptocurrency: Monero and Bitcoin
The two most popular and well-known forms of cryptocurrency are Monero and Bitcoin.
Monero was introduced in 2014. It was previously launched as Bitmonero which was a combination of Bitcoin and Monero. However, it was criticized by its own community. Due to certain discrepancies with its founder thankful_for_today the project was taken over by a group of users led by Johnny Mnemonic. They decided to change the name to Monero. Monero is an open-source, security-based system of digital currency that works on a distributed and decentralized idea popularly known as the Blockchain concept.
This Blockchain concept is the underlying force behind this secure system of the anonymous transactions of virtual money. Monero emphasizes on certain important principles. The foremost is security. The users must have enough confidence to rely upon Monero with regard to their transactions, without facing the risk of getting caught or attacked. Monero gives full protection to its members. They are the ones who are most crucial to keep the network going.
The Monero cryptocurrency is designed in such a manner that all the personal information is kept private from the eyes of the public through single-use addresses thus obscuring the origin, amount and destination of all transactions. Monero takes the matter of privacy very seriously as it has to protect its members from all future dangers which could also involve the law. Moreover, the Monero system is based on the egalitarian principle which believes that individuals are born equal and deserve equal opportunity in all strata of life. Thus, it provides them with a way to fulfill their dark fantasies without the fear of having their names being jeopardized.
The system of Monero gives utmost importance to the privacy of its members which is done through ring signatures. This makes it next to impossible to trace the identity of the sender and the receiver thus ensuring a high level of security. Due to its privacy and fungible features, Monero has become very popular in the black market. There, it is used to buy various stolen items like – vehicles, cards, and weapons without being blacklisted by vendors. Over 500 developers along with 50 core developers have contributed to making Monero more welcoming and active thus pushing the boundary of the system.
Monero and Bitcoin are often confused as one however they are very different from one other.
Bitcoin is decentralized, computerized cash without a national bank or administrative body where virtual money can be sent from client to client on the shared Bitcoin network without the requirement of an intervenor. One of the most distinguishable features between the two is that Bitcoin has transparent blockchains which means that all its transactions are traceable and openly verifiable by any authority which may eventually trace back to a person’s real identity in the world. Thus, having no sense of security or protection.
In contrast to that, Monero uses various cryptographic techniques which by default hide the sending and receiving address of the easy virtual cash transaction from anywhere by anyone across the globe. This leads to giving the system of Monero an edge over Bitcoin in the cryptocurrency market.