Time has been transformed; and we have changed. This phase, what I consider, is the time of emergence. Lots and lots of people are getting joined by roads, by words, by laws and moreover even by network to pursue collective dreams. There is hardly any gap left. You live in a foreign country, miss home, video calls are here. You don’t have a vehicle to travel, book a cab, cab services are here. There are solutions for every problem and we have resolved many. We don’t want to stop and waste our time. For time is precious. But, with money, we still have to stand in long queues, wait for days to get huge transfers done. To ease this, Cryptocurrency, a technique has come into play.
Most of us are still unaware of what Cryptocurrencies are and how do they ease our work?
To be more precise and clear, it is just
limited entries in a database that hardly anyone can change without fulfilling specific conditions…
Yes! You heard it right, by math.
These cryptocurrencies are held electronically in websites or wallets, not controlled by government or banks, and are created by demand as per the number of people or merchants using them. I know most of you might be thinking, since it is not controlled by such financial institutions, then who controls it? It’s you who controls it. It is a decentralized network; you don’t have servers here. It’s like a peer -to-peer network for file sharing, i.e. person -to-person. You own the driving seat and you control every action.
Though, only miners can confirm such transactions. This is their job in a cryptocurrency-network. Basically, everybody can be a miner.
But it is not as easy as you think!
Almost every other day new cryptocurrencies emerge, few survive and few die. Markets are dirty but cryptocurrencies are fast and wild. It comes like a big storm to turn the world upside down and rank itself at the top in the market. Cryptocurrencies created an incredibly compelling, fast growing market for venture capitalists and explorers. Most of you would have heard about Bitcoin or Ethereum. May be that’s the reason you are here. Bitcoin and Ethereum are major coins in the market as of now. You can invest in these and buy minor coins. Minor coins are the alt coins that follow the same race and are handling their driving seats very well.
One major problem every payment network faced was double spending: one entity spends the same value twice. Usually, double spending is carried out by a central server who maintains record about the balances. While in case of a decentralized network, you don‘t have this server. So you need every single entity of the network to do this job. After seeing all the centralized attempts fail, Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most vital cryptocurrency, tried to build a digital cash system without a central entity and resolved the issue of double spending.
Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend. Satoshi’s major innovation was to achieve consensus without a central authority and here is the result, Bitcoin.
Exciting as well as dramatic : Cryptocurrency face ups and downs on the basis of demand and supply. External factors govern the value. Highs are exceptional, you can build your retirement with ease. While falls in value, is the best time to invest in. Invest 1000 and you can earn millions.
Influence : In markets also, you reap what you sow. Since you own the control, it’s you who can increase the demand of your coin by making people aware of it and aid them into investments. Trading is uncertain yet most exciting opportunity or a way to invest and create wealth.
Speculative value and demand : New fashion trend in a society and the world starts following it. Same is the case here, rise in price and people start looking for it. People feel value is going up, they try to cash in.
You don’t need to travel to banks to get the payments or investments done. You carry the money in your computer wallets or mobo device. Cryptocurrencies are a part of this solution – the part that made the solution thrilling, fascinating and helped it to roll over the world.