Investors in cryptocurrencies such as Bitcoin are happy to know that it is currently valued at just over $4,000 as it has seen an increase of 1.84%. If news like this does not inspire potential investors from making a move to putting their monies into one of the best cryptocurrency exchanges on Blogspot then I don’t know what else will.
Another bit of new is that Bitcoin booked the 5th win in a row among other crypto coins. Even Litecoin has doubled, which instill even more confidence in potential traders to learn more about this ultimate way of using your money.
How does the Merriam Webster dictionary define cryptocurrency to USD?
They see it as any currency that exists digitally only. In turn, it utilizes a decentralized system for recording the transactions as well as manage the issuing of new units without the need for a regulating or central issuing authority to be involved. It also relies on cryptography to avoid fraudulent and counterfeit transactions.
To put it another way;
Digital currencies like Ethos make use of cryptography to verify and secure transactions while it would simultaneously control the creation of new units. In essence, crypto is regarded as limited entries within a database that others cannot change until a specific condition is fulfilled.
Why Everyone Should Have More Confidence in Cryptocurrency Like Ethereum and Other Altcoins
Just a couple of days ago, the South Korean Giant – Samsung, announced that their latest smartphone addition, the Galaxy S10 will feature secure storage that is backed by robust hardware to make provision for blockchain mobile services. The phones are even primed with Blockchain tutorials to assist users to gain a deeper understanding of the new way to move money through their built-in wallet known as “Samsung Blockchain Keystore.”
Going Back in Time – Crypto’s History
There have been various attempts to create a robust digital currency since the 1990s when people say the rise and fall of systems like DigiCash, Beenz, and Flooz. The different reasons that contributed to such misdemeanors were attributed to financial problems, fraud, and friction between bosses and their employees.
Somehow, all the systems made use of what was known as a trusted 3rd party approach, which meant the companies behind them facilitated and verified the various transactions. Because of the failure of these firms, the creation of a trusted digital system was regarded as a lost cause for a long while.
That was until the year 2009, when under the direction of an alias known as Satoshi Nakamoto, Bitcoin saw the light of day. It was defined as an electronic peer-to-peer system that was fully decentralized without the intervention of any servers or central authorities.
One of the main issues faced in the past had to be overcome, which involved double-spending. No one wanted to lose additional funds by spending the same amount twice in a row. What they needed was a traditional way that utilized a 3rd party or central server to keep records of all transactions and balances. What they didn’t need was a central authority that maintained control over everybody’s finances.
This is where the decentralized network in the form of Bitcoin came to the rescue where several participants were needed to carry out this function. They would do this through Blockchain, which serves as a public ledger to keep account of all transactions that were run within the network and made available to everyone involved.
What happens around every transaction is that encrypted files are transferred that consist of the recipient’s and sender’s wallet addresses (public keys) and the amount of the coins. The sender would sign off the transaction using his or her private key. All this jargon is contained in one word – cryptography. In time, the transaction would be broadcasted for all to see, but it must be confirmed first.
Who would confirm the transactions within the network, and how safe is it?
No doubt, this question crosses many inquiring minds. There is no need to be concerned. Only miners within the network are allowed to confirm transactions through solving a cryptographic puzzle. They would mark the relevant transactions entering the system as legitimate. Soon after, nodes within the network would add these to the database. Once confirmed the transactions cannot be reversed and the miner would receive their reward.
It is reassuring to know that the consensus-keeping process is secured with strong cryptography.