We are heading towards Cryptocurrency, an open ledger, decentralized system to smooth our exchange process. Open ledger system means, it will have transaction history but anyone can not reverse the transaction that you have made. Decentralized network tells about a system that doesn’t controlled by anyone. So you need every single entity to do this job.
How crypto currency has emerged as digital cash?
The unknown inventor of Bitcoin Satoshi Nakamoto invented the first and still the most popular decentralized cryptocurrency. In his announcement of Bitcoin in late 2008, Satoshi said ‘’he developed a peer to peer electronic cash system.”
The most important thing about this invention, however he found a way to build cryptocurrency that it is based upon a decentralized network. In the late 90’s there have been many attempts but they all failed to created digital currency.
Inventor of Bitcoin wants to create a currency that it not depends upon any central authority and he has to achieve the consensus. Nobody even think about it, until Satoshi emerge out of nowhere.
What cryptocurrency really is?
If we can forget about the noise of cryptocurrency going through all over the world and come into a single definition, you will find it as a database, which needs to fulfill specific condition. This may be seen as an ordinary thing but this is the basic thing about any currency or exactly it is how you can define a currency.
Cryptocurrency basically divided into two parts Crypto Coin or money and Tokens. Having said that there is some difference between them, tokens basically created for a particular ecosystem. Coins like Bitcoin, Litecoin, Ethereum are crypto currency coin. They are valuable outside their native environment. There are several coins are available over the internet, till 19 August 2018 there are over 1600 and growing.
However Omego and Golem are projects and they are also a token because they exist on a smart platform, like Ethereum.
Before going into the deep analysis of cryptocurrency we have to know about ICO or Initial Coin Offering, presale coin of a cryptocurrency or token of a project has evolved in a crazy and most successful way to raise funds for development of a product or any new application. On the other hand ICO can be described as cryptocurrency crowdfunding.
ICO mainly is fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company.
Maybe Ripple was the first ICO Company who distributed cryptocurrency. In early 2013 Ripple started to develop Ripple called payment system and created 100 billion XRP tokens.
Several ICO companies provide funds to cryptocurrencies. For example later in 2013 Mastercoin’s developers sold some billion token against Bitcoin and earned around $1 mio. But the most prominent however is Ethereum. In mid-2014 the Ethereum Foundation sold ETH against 0.0005 Bitcoin each. With this, they receive nearly $20mio, which has become one of the largest crowdfunding ever.
Transitional properties
Every transition needs some transitional properties. Following properties are applicable for cryptocurrency transition.
Irreversible: After confirmation no one can reverse the transition. Confirmation is the most important part of any transitions, transition is known as almost immediately by the whole network, but after a specific time it gets confirmed. Anyhow if you have sent your money of funds to scammer or any hacker stole it from your computer, there’s no safety net.
Pseudonymous: The pseudonym identifies a holder, that is, one or more human beings who possess but do not disclose their true names (that is, legal identities). Neither any transitions nor accounts are connected to real world. You received some crypto coin on that address.
Fast and Global: Transitions are done near instantly and are confirmed within couple of minutes. All transitions are happened in global network computers they are completely nonchalant of your physical location.
Secure: It is completely secure, since crypto currency funds are locked in a public key cryptography makes it impossible to break this system.
Permission less: Anyone did not have to take any permission to use crypto currency. It is an software and you can download it for free. After installation you can send or receive money from any one, no one can prevent it.
Crypto currency is a big success to their inventor due to its revolutionary properties. People buy crypto currencies to protect their money from devaluation. Market of crypto currency growing very fast, it is clear that crypto currency is here to stay. Every Cryptocurrency emerge with a promise to turn the world around.
Revolution starts happening, many investors’ start to buy cryptocurrency. Governments and banks starts to realizing that this invention can rule the market and have the potential to draw their control away. Cryptocurrency will change the world, you can take a part of the history making or either you can stand beside and observe.
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