Cryptocurrency has become a popular
topic of discussion for several years. However, in late 2017, with bitcoin
futures trading began on the Chicago Board Options Exchange and the Chicago
Mercantile Exchange, the conversation has seemed to reach its peak. But what is
cryptocurrency? And what's behind the meteoric rise?
Such as money, cryptocurrency is
a medium of exchange. However, cryptocurrency are virtual or digital, which
means that there is no physical coins or bills that the owner of the currency
had. The "cryptographic" part of its name comes from the fact that it
uses cryptography to secure and authenticate the transaction. Moreover, a
common characteristic of many cryptocurrencies is their decentralized nature:
While the typical currency issued by the central bank, cryptocurrencies cut out
the middleman as peer-to-peer. This decentralization is touted as one of the
main benefits, as it will increase the speed of transactions and letting users
avoid the cost charged by other banks and financial institutions are more
traditional.
There are several
cryptocurrencies are widely used. Among the largest is Ripple, litecoin, and
Ethererum. However, the Bitcoin which remains the biggest and most talked about
cryptocurrency.
What is Bitcoin?
Bitcoin was created in 2009, is
credited as the first decentralization cryptocurrency. It is also the first
cryptocurrency that has futures traded on the major exchanges. Bitcoin holders
can use it just like other currencies in thousands of vendors, including
overstock and Subway.
Bitcoin, though, has garnered
widespread attention not only to the increase in popularity as a digital
currency but also for what is probably the greatest innovation: blockchain.
What’s behind Bitcoin: Blockchain
Technology
In the most basic terms,
blockchain is a type of digital books and society. Bitcoin uses blockchain
technology to retain information about how many Bitcoin owned and who owns it.
Instead of having a physical currency, or even a digital file representing the
currency, the individual has a claim to a piece of information that is
contained within a large book blockchain.
So, when a Bitcoin transaction is
made, the currency is transferred between the parties as a block of information
to be added to the chain of historical transaction data. This "book"
is the file public to be able to download a copy of it. the individual's
identity is encrypted, however, and technology features are among the many
reasons it is so highly praised.
Just as Bitcoin and
cryptocurrencies are gaining in stature, blockchain expected to emerge as an
important technology with a wide range of potential applications, as well.
Blockchain can be used in everything from an accelerated transfer of title in
real estate sales for international transactions-not to mention the people who
have not even been thought of yet.
In other words we can say
Blockchain is a technology that
supports Bitcoin and developed specifically for Bitcoin. So, Bitcoin is the
first example of blockchain in action and without blockchain, there will be no
Bitcoin. That's why the two names are often used interchangeably.
But that does not mean that
blockchain and Bitcoin is same thing.
Bitcoin is a decentralized
digital currency, electronic payment system or peer-to-peer, where anonymous
users can transfer Bitcoins without the intervention of a third party authority
(such as a bank or government). Bitcoin is one example of cryptocurrency,
though; another cryptocurrency network is also supported by blockchain
technology. So although Bitcoin uses blockchain technology for digital currency
trading, blockchain more than just Bitcoin.
Conclusion:
Cryptocurrencies are virtual money that is basically assets
and is developed by the blockchain technology.
With the growth in the economy, there are thousands of
cryptocurrencies in the world today. Cryptography technology is used by the
cryptocurrencies to verify and transact money in a secure way. Blockchain app
development services are the services that expertise in creating a digital
platform for the exchange of decentralized applications for the benefits of the
customers. It is basically the software that is developed in mobile apps that
encourage cryptocurrency.
Fusion
Informatics is a trusted custom software development company with a
primary focus on delivering blockchain
app development services. With vast expertise in the development of
mobile applications, web-oriented software, business software solutions that
harness the power of connected devices to advance lifestyles and empower
enterprises with blockchain products.
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