Crypto; The Future Currency

Cryptocurrency is a form of digital currency that uses cryptography for security. Unlike traditional currencies issued by the government and central bank, crypto currency operates on decentralised network based on block chain technology. Here is brief introduction to key concepts of crypto currency;

Blockchain Technology – crypto currencies are built on blockchain technology, which is a decentralised and distributed ledger. A blockchain consist of a chain of block, each contains a list of transactions. This technology ensures transparency, security and immutability of transactions records.

Decentralisation – Unlike traditional financial system crypto currencies operated on decentralised network of computers called nodes. This means, there is no central authority, like government or financial institution controlling the currency. Decentralisation contributes to increased security and reduced manipulation.

Cryptography – crypto currencies used cryptographic techniques to secure transactions and control the creation of new units. Public and private key plays a vital role in ensuring the security and integrity of transitions. Public key serves as address for receiving funds, while private keys are used to sign transactions and used to access the cryptocurrency holdings.

Mining – crypto currencies use a process called mining to validate and add transactions to the blockchain. As a reward, miners receive newly created cryptos and transaction fee.

Bitcoin – Bitcoin (BTC) is the first and most well-known crypto currency, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Bitcoin introduced the concept of blockchain and decentralised digital currency paving the way for development of numerous other currencies.

Altcoins – besides Bitcoin there are thousands of alternative crypto currencies, often referred to as altcoins. Some popular examples include Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Cardano (ADA) etc. each altcoin typically has its own unique features, use cases and underlying technology.

Wallets – Cryptocurrency wallets are digital tools that allow users to store, receive and send for crypto currencies. Wallets can be software based (online, desktops or mobile apps) or hardware based.

Exchange – Crypto currency exchanges are platforms where users can buy, sell or trade cryptocurrencies. Popular exchanges include Coinbase, Binance, Kraken etc.

Cryptocurrency markets are known for their high volatility. Prices can experience significant fluctuations in short period, creating opportunities for traders and investors but also posing risk. In summary, crypto currencies uses unique advantages such as decentralisation and borderless transactions at the same time come with the risk of regulatory challenges and technological complexities.

Vineeth. U. V, Asst. Professor, Commerce, Al Shifa College of Arts and Science, Perinthalmanna