How cryptocurrency works

Is Cryptocurrency in the Future?

A year ago was when I started hearing about Cryptocurrency. I had no inkling of what it was. Cryptocurrency was associated with “Yahoo Yahoo”, “yahoo gamblers money” and it had a bad ring to it. That was what everybody around me knew about it, who knew there was anything like data currency?

Most people never thought about the possibility of buying stuff with crypto. The thought of there ever being a time when we would transact stuff with data coin, i bet never crossed anybody’s mind. Up till now, i would bet my last kobo in my account that most people who knew about cryptocurrency do not know how much cryptocurrencies there are..Cryptocurrency is here, but then, is it in the future?

So what is really cryptocurrency?

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.

Cryptocurrency is constantly on the rise

with the rise of information associated with it. Many individuals and startups are constantly associating themselves with it sometimes, more often than banks do and the future of Cryptocurrency depends on how fast our financial institutions and our government allow themselves realize opportunities aligned with cryptocurrency.

Cryptos are safer than our traditional currencies

One of the reasons why cryptos are incredibly popular, is the fact that they are safer than our traditional currencies. They are stored in digital wallets and the transactions are pseudonymous which reduces the possibility of counterfeits, because of the code system that encrypts each transfer, and ensure complete safety to every user. The wave is heated and most people would only but indulge in this data currency, which keep bringing it on the increase.

Cryptocurrency is decentralized

Another reason is that cryptocurrency is decentralized. Inflation is impossible because there is no government to print more of it. As time goes on, cryptocurrency decreases with huge demand of it. Cryptocurrency settles transaction in the blockchain and are generated through a process called mining.

Satoshi and David Chaum

David Chaum’s Blinding formula is the foundation on which all types of modern cryptocurrency rests upon. U 2008 with the mysterious Satoshi Nakamoto who invented what we know as bitcoin. Satoshi Nakamoto could be a ‘she’, or a ‘he’ or a ‘they.’ For all we know, Satoshi is a pseudonym for one of the biggest ideas in crypto technology. Bitcoin was launched in 2009 as an open source software, and slowly, it made steady progress as more people began to know more about it. It provided many financial opportunities for people in countries with fluctuating currencies to protect their wealth and it gives people the charge to be their own financial institutions. Since bitcoin is decentralized, its flow completely follows the rules of the free market. Because of this, there will only ever be 21 million bitcoins to keep the value of bitcoin intact. Then, there is altcoin; an abbreviation for bitcoin’s alternative. Altcoin is where all other cryptocurrency fall into. At least they hope to replace every bit of bitcoin’s component. Ethereum, litecoin, Zdash, Next, QORA, and others.

Is cryptocurrency on the rise?

Cryptocurrency is covering grounds and is gaining significance with the increase of new coins in the market. Bitcoin is already here to stay because top-notch companies are based on digital platforms and some of our educational institutions are already hosting classes on bitcoin as part of their curriculum. Some companies are already considering investing genuinely in bitcoin which begs the question of how long it will take before other crypto that are not built on what bitcoin stands for begins to fall. Eight years ago, bitcoin was bornborne, and we are still counting. It is too soon to tell what will happen after 2017