Cryptocurrency: History and Work

Cryptocurrency: History and Work

A cryptocurrency, cryptocurrency, or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of coin ownership. It does not exist in physical form and is typically not issued by the central authority.

The main point of cryptocurrency is to fix the problems of traditional currencies by putting the power and responsibility in the currency holder's hands. All of the cryptocurrencies adhere to the 5 properties and 3 functions of money. They each also attempt to solve one or more real-world problems.

History Of Cryptocurrency

In 1983, the American cryptography David Chaum conceived anonymous cryptographic electronic money called ecash. Later, in 1995, he implemented it through Digicash, an early form of cryptography electronic payments which required user software to withdraw notes from the bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.

In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system. Shortly thereafter Nick Szabo described bit gold. As Bitcoin and other Cryptocurrencies would follow it, bit gold was described as an electronic currency system that required users to complete a proof of work function with solutions being cryptographically put together and published.

The first decentralized cryptocurrency, bitcoin, was created in 2009 by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme. In April 2011, Namecoin was created as an attempt at forming a decentralized  DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It used script as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin used a Proof-of-work.

In August 2014, the UK announced its Treasury had been commissioned a study of Cryptocurrencies, and what role, if any, they could play in the UK economy. The study was also to report on whether regulation should be considered.

Is Cryptocurrency Limited?

Cryptocurrency has some limits as natural resources like Petrol, Diesel, etc. All cryptocurrency we know till now has a limit that depends upon how much we can extract it through mining. It will get over one day or become too costly have it? 

Crypto mining meaning is gaining cryptocurrencies by solving cryptographic equations through the use of computers. This process involves validation data blocks and adding transaction records to a public record as a blockchain.

Cryptocurrency: History and Work

In past years cryptocurrencies like bitcoin, ethereum, etc. are gaining market value and big companies invest in them. This is not wrong to say that one-day cryptocurrency is the new form of transaction and all of us are start investing in them. Even some companies start making it legal for their product selling.

Transaction of the cryptocurrency depends upon blockchain marketing where users keep their cryptocurrency in the form of data.

Post a Comment

Previous Post Next Post