What is cryptocurrency and how does it work?

Cryptocurrency is digital currency. It is a medium of exchange which is designed specially for digital information and which is made possible through cryptography. This is where “Cryptocurrency” got its name from - crypto - “concealed” “secret.”  

There are people who believe that cryptocurrency will take over our normal currency and replace it with one currency - Data currency. If these people are right about this, only time will tell. But there is a fact about Cryptocurrency…  It is here to stay.

Cryptocurrency did not start with bitcoin. Infact, long before bitcoin, there have been digital currencies. But these digital currencies, in one way or the other were all short lived. For example, Digicash. Digicash was founded in 1983, 25 years before bitcoin, by an American cryptographer, David Chaum, who believed that in order to do safe commerce, we would need a token money that will emulate physical coins and paper notes. He eventually invented the blinding formula, an extension of the RSA algorithm. It was called the blinding formula because his Digicash required user software in order to withdraw notes from the bank and designate specific encrypted keys before it could be sent to a recipient. However, he fell out when Digicash ran out of money.

Then, the second wave hit, which was the noise on web based money. Virtual, and then, PayPal, and e-Gold.

Satoshi Nakamoto wrote, on releasing the code:> You know, I think there are a lot more people interested in the 90’s,> but after more than a decade of failed Trusted Third Party based systems> (Digicash, etc), they see it as a lost cause. I hope they can make the > distinction that this is the first time i know of what we’re trying a> non-trust-based system.”

Bitcoin is history’s result. Nakamoto may have been the mother of Bitcoin, but it is a child of many fathers...

FACTS ON CRYPTOCURRENCY

1. Cryptocurrencies are not normal currencies
2. Cryptocurrencies are data currencies.
3. Cryptocurrencies uses a branch of math called public key cryptography
4. There is no official sanction on cryptography
5. Cryptocurrency is better than normal currency because the need to move money from place to place and the cost to do it can be bothersome.
6. There are over 900 number of Cryptocurrency available on the internet and still counting.
7. 99% of Cryptocurrencies are scams.
8. Bitcoin is leading in the blockchain network with its value at $5.653 for 1btc