What Is Crypto Currency And How Does It Work

We all have heard about or at least know someone who used/uses crypto currency, but what exactly is it? So, crypto currency is basically an internet-based medium of exchange /virtual currency which use cryptography to conduct secure and verified transactions for its users. All crypto currencies were developed and necessarily work through block chain technology. The block chain technology assures that all crypto currencies are limited entries in a database that efficiently records transactions between two parties efficiently and in a permanent way. It does not exist physically and isn’t issued by any centralized authority as opposed to central banking systems and or digital currency. Apart from it being a transparent and secure way to carry out financial transactions, another feature that attracts its users towards it is that crypto currencies can be traded between two parties directly via the use of public or private keys, and thus, users can avoid the steep fees charged by most traditional financial institutions.

An interesting fact about crypto currencies is that they emerged as a side product of another invention.

Bitcoin is the most popular and widely used crypto currency of all time, founded by its anonymous inventor Satoshi Nakamoto and was introduced to the world for usage in 2009. According to him, he never intended to invent a currency in the first place. He had intended to develop a “peer-to-peer electronic cash system” to prevent the problems of double-spending. The most important feature of his invention was that it was a decentralized server and this was the first time someone had successfully made it a non-trust-based system after many failed attempts in the past and this decision became the birth of crypto currency. In a decentralized network such as bitcoin, every single participant needs to do his job, made possible with the help of block chain technology.

The working of it is very simple yet very complex in nature. Here, every transaction contains the wallet addresses of both parties also known as their public keys and the number of coins transferred

Every transaction is broadcasted in the network, but first, it has to be confirmed, meaning, it first has to be signed by the sender by his private key. All of this work is hassle-free, and is just basic cryptography. In this network, only miners can confirm transactions by solving a cryptographic puzzle. Then after they have stamped the transactions as legit, they broadcast it in the network, and after it has been approved by every other miner, it gets added to the database to securely now become a part of the block chain. This is basic p2p technology. Strong cryptography ensures the consensus-keeping process is carried out in a secured way.

 

Crypto currency is sound money that is secure from political influence and money that promises to preserve and increase its value over time. Not only is it useful for purchasing goods online, securely but also an investor's dream come true in many cases. For example, BTC was valued at around $800 in January 2017 but as of now, it is valued at around $13500, which shows the huge amount of potential it holds for an investor. Earlier it used to be a tough job to find a merchant, seller who accepts crypto currencies as a payment method, but that has changed drastically over the years. Now owners can use it to pay for hotels, flights, jewelry, and even college tuition fees. Another usage of bitcoins would be mining them. Miners are the most important part of this network, and much like trading, mining is an investment. Miners essentially provide a bookkeeping service for their respective communities. If someone is willing to invest in good quality mining hardware, it can be quite profitable and it is very possible to make a fortune out of it. This, of course, comes at the price of incurring huge electricity bills and the investment of a good lump sum in mining hardware.

Today there are a number of cryptocurrencies available to the daily man other than Bitcoin. Etherum, Ripple, Bitcoin, Dash are some widely used examples. Although the legality of various crypto currencies vary from state to state and from nation to nation, it is undoubtedly one of the most popular, secure, and fruitful investment opportunity available globally, along with the various other business opportunities that it opens up for its users. This ever-growing and ever-evolving network created to facilitate commerce has been a huge success globally and still has a huge amount of untapped potential waiting to be discovered.

About ARTW

The ARTW is a blockchain based Art verification and art trading platform. We are building an Art ecosystem which will enable all the stakeholders of the industry – Artists, collectors, art enthusiasts, art exhibitors & galleries and institutional buyers to buy/sell genuine, verified artwork from our trading platform. Moreover, ARTW Token is the inherent part of our art ecosystem. It is a utility token based on binance smart chain BEP 20 standard. Our tokens can be used to purchase Artworks from the participating galleries and our own ART marketplace.

To know more about ARTW visit theartwcoin.com

Original Source: https://bit.ly/3vEhTat

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