Bitcoin And All Other Cryptocurrencies

A cryptocurrency is a medium of exchange. The currency may be used to transfer funds, purchase items or pay debts in anonymity. It is free from government manipulation and control. Its value is determined by agreement of the parties engaged in transactions. Some cryptocurrencies are capped, and their value is determined by supply and demand. Cryptography uses hash functions that make cryptocurrencies secure and difficult to counterfeit.

History of Cryptocurrencies

Bitcoin
This coin was developed in 2009 by someone using the pseudonym of Satoshi Nakamoto. It uses a set of cryptographic hash function known as SHA-256.

Namecoin
The first Altcoin (alternative to bitcoin) was developed in 2011. It made Internet censorship more difficult.

Litecoin
Litecoin used scrypt as a hash function that was thought to be better than SHA-256.

Ripplecoin
Ripplecoin uses Bitcoin protocol. It serves as a payment system for any cryptocurrency, fiat currency (issued by governments), commodities or frequent flyer miles.

In the following years, blackcoin, coinve, dash, dogecoin, ethereum, masterroor, mazacoin, monero and others have been developed.

Getting Started
Begin by Installing a wallet on your computer or mobile device. The first address for transactions is automatically generated, and you can create others as needed.

Bitcoin balances are kept in a block chain that acts as a public network ledger. Transactions are verified for the amount spent and proof of ownership.

Litecoin transactions are broadcast on the network among users and begin confirmation within ten minutes.

Processing Transactions
Anyone may become a cryptocurrency miner. Miners search through hash functions to verify transactions. When these transactions are verified, the information is shared with others on the network. For their work, miners are paid a percentage of the coins they’ve mined. Bitcoin and other cryptocurrencies use the proof-of-work system for verification.

Litecoin uses the scrypt for hash functions. In the beginning, miners used a C++ programs, but ASIC (application-specific integrated circuit) machines are currently available for mining.

Advantages Of Cryptocurrency

  • Serves as an international currency
  • Funds are transferred without fees

Disadvantages Of Cryptocurrency

  • Money laundering
  • Tax Evasion
  • May Harm World Economy

Who Uses Cryptocurrencies?
Cryptocurrencies are available for anyone to buy or mine, but it appears to be most attractive to the wealthy, the powerful and criminals.

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