Cryptokon

Cryptocurrency

A cryptocurrency is a digital or virtual currency that is secured by series of code (cryptography), which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. bitcoin, was created in 2009 by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme.

How to define cryptocurrency?

    As defined by Jan Lansky cryptocurrency is a system that satisfies six condition:
  • The system should be maintained by distributed consensus not by central governing authority like RBI.
  • The system have a ledger of its every unit and its ownership.
  • The system should define whether new cryptocurrency units can be created. Its should have a process to define circumstances for mining of new unit and how to determine the ownership of these new units.
  • Ownership of cryptocurrency units can be proved cryptographically .
  • The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
  • If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.

What are Altcoins?

    Cryptocurrencies other than Bitcoin are called Altcoins or “alternative version of bitcoin”. Altcoin have underlying diffences with the Bitcoin. Example Litecoin aims to process a block every 2.5 minutes, rather than bitcoin's 10 minutes which allows Litecoin to confirm transactions faster than bitcoin.[25] Another example is Ethereum, which has smart contract functionality that allows decentralized applications to be run on its blockchain. [26] Ethereum is the most-actively used blockchain in the world according to Bloomberg News[27] and has the largest "following" of any altcoins according to the New York Times.

    Top 10 Altcoin :-

  1. Ethereum(ETH)
  2. Litecoin(LTC)
  3. Binance Coin(BNB)
  4. Tezos(XTZ)
  5. Monero(XMR)
  6. Cardano(ADA)
  7. Neon(NEO)
  8. Tron(TRX)
  9. Polkadot(DOT)
  10. Chainlink(LINK)

What are application of cryptocurrency?

A blockchain account can provide functions other than making payments, for example in decentralized applications or smart contracts. In this case, the units or coins are sometimes referred to as crypto tokens (or cryptotokens). Cryptocurrencies are generally generated by their own blockchain like Bitcoin and Litecoin whereas tokens are usually issued within a smart contract running on top of a blockchain such as Ethereum.

What is under the hood?

  1. Blockchain
  2. Timestamping
  3. Mining
  4. Wallets

To Convert Fiat currency into Cryptocurreny we need exchange similar to stock exchanges like BSE or NSE.

List of Indian Exchanges are:-

  1. Zebpay
  2. Coindcx
  3. Wazirx
  4. Buyucoin
  5. Bitbns

List of International Exchanges are:-

  1. Binance
  2. Coinbase
  3. Kraken
  4. Huobi Global
  5. Bithumb

Cryptocurrency is a digital or virtual currency that is based on a decentralized network of blockchain technology. Eg: Bitcoin.

Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. bitcoin was created in 2009 by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme. The primary moto for this technology was to spread power equally into society. Bitcoin came into existence to cope up with the financial crisis that arose after the 2008 depression. Cryptocurrency can be an answer to current financial mismanagement.

Bitcoin is a currency that is not regulated by any central authority like federal banks or the government. The huge success of bitcoin opens up a new arena for cryptocurrency

Why Cryptocurrency over Fiat?

  • 1.Low storage and transfer cost: Compared to traditional banking services, Crypto has no storage cost. In the case of the transfer of money, crypto is better than fiat money. Crypto with a minimal amount of transfer is better than a banking system eg. Tron, Vet, Dogecoin, etc.
  • 2.Universal Currency : Cryptocurrency is not bounded by political boundaries, unlike fiat currency. Its free movement and impossible to counterfeit make it a public choice. It has also removed the cumbersome task of fiat exchange.
  • 3.Decentralized: Cryptocurrency is not regulated by any centralized bank or government. With the fixed amount of cryptocurrency generated in a system, it is safe from hyperinflation. Whereas in the case of Fiat central authorities can be notorious in some cases like hyperinflation in Venezuela.
  • 4.Impossibility to falsify: Fraudsters cannot make fake cryptocurrencies. The reason is it is a digital currency, not a paper currency like fiat money. Cryptocurrency is powered by blockchain technology, and the details of every transaction are recorded in it. You cannot bypass it anyway.
  • 5.Investment: Cryptocurrency is generated in a limited amount and it is brought by the masses. so according to the law of supply and demand of cryptocurrency, it has become an investment choice

    • What are trends in the crypto market?

  • The great halvening : The most awaited event that happened in 2020 was bitcoin halvening where bitcoin rewards for successfully mining up a block in the digital ledger by half, from 12.5 to 6.25 BTC. Following the trend of the past two halvenings bitcoin is on a rogue path and has crossed $50,000. The halving is aimed at stabilizing the supply of bitcoins as it approaches full saturation and there are no more bitcoins to be mined. After that, well, bitcoins may become rarer and more valuable than gold, or Satoshi Nakamoto could create more bitcoins to be mined so the coin’s price can continue to be moderated, or it could gradually lose value to more abundant or practical digital currencies like Bitcoin Cash, which forked off from the original Bitcoin in 2017 for just that purpose.
  • Bulls in the market : Forecasting the potential of cryptocurrency investors like Elon Musk, Mastercard, Visa, Binance, Bank of New York MellonCorp, etc. are driving the crypto market crazy. For example, A single tweet by Elon Musk drove the price of the dogecoin from 20 satoshis to 270 satoshis.
  • The boom in the Market : Several financial crises due to covid 19, petroleum crisis, Trade war, etc. made cryptocurrency a lucrative choice for an investor.
  • Speculation of a ban in India: India is planning to regulate the crypto market but that will ultimately make it a fiat digital fiat

    • What is the future of cryptocurrency? Forms of digital money have been on the rise in the past few years. Today a broad assortment of transactions can be undertaken without using cash and conventional types of money. it is the latest entrant. Cryptocurrencies are increasingly redefining capital and money markets. it has several unique characteristics that make them popular. For financial institutions, It could result in significant savings as reduced paperwork and could be used as platforms for crowdfunding, and also it could revolutionize capital and money markets by addressing challenges associated with the increasingly digital money. With cryptocurrencies, virtually everyone can be an investor online. This is a particularly important advantage for entrepreneurs hunting for funding. Some startups have obtained funding through this new channel. As a result, cryptocurrencies could be the future of money