Nowadays, with the internet conquering every market in the world and making themevolve, it was also necessary that money, or at least the Exchange asset forachieving transactions on the internet, evolved too. That’s why, for around 10 years now, “online money” or “online asset” known as cryptocurrencies have been appearing and consolidating themselves in the online market so much that one of them (bitcoins) is even said to be the most powerful coin in theworld.
How does cryptocurrency work?
Well, truth to be said, it is not actually Money but works a lot like it; it is a digital asset that you can Exchange for actual commodity or even win real Money with it. The term “Crypto” refers to the fact that the assets system uses “cryptography” to protect the value of the assets. If the rewasn’t this kind of protection it would be really easy to manipúlate cryptocurrency and trick people to win Money dishonestly.
The prime advantage of this cryptocurrency (subset of digital, alternative and virtual currencies) is that they’re decentralized; unlike bank currencies that store money in a centralized location, meaning the bank, where your money can actually be lost in some extreme situations (like robbery, cheat, national crisis, etc), cryptocurrencies use the Bitcoin chain block data basewhich is totally online there for eprotected and available anywhere.
Another primordial advantage of cryptocurrency is that they are produced by a rate previously established and public ly known before actually creating the cryptocurrency so it’s quite transparent. In this matter, cryptocurrencies were first created in order to ful fill a mutual non conformity from a group of computer user so ruser, known as Satoshi Nakamoto, that finally designed this system and created the original decentralized cryptocurrency which is, of course, Bitcoin.
How are cryptocurrencies safe?
As we said before, Bitcoin is said to be themost powerful “money” in the world, and the rumors say that Nakamoto owns around 1 million bitcoinswhich are valued in around 2.7 billion USD (yes, billion). The safety of this system is actually based on the good will of “miners” that are regular internet users that valídate their transactions and maintain the ledger so the cryptocurrency is firm, but they’re also said to be paid to do that, what has been quite functionals in cryptocurrencies seem to be strong erevery day.
The autonomy of cryptocurrencies come from the fact that they’re hard to control for the authorities. With the cryptography system, stashes can be held separately without th e-law being able to manage you rassets. Financialfreedom? So it seems. Nevertheless, the real legality of cryptocurrencies is still very variable in every country and sometimes it isn’t even regulated yet. Some countries are very open to this class of currency but otherones are definitely against it and some others just accept Bitcoin as a regular cryptocurrency.
Of course, cryptocurrencies offer a great concern about the global economy since they’re so difficult to control and previous criminal use (Silk Road case and other “deep web” situations) but, on the other side, they also seemto be “the money of the future”. Place your bets!
Most important cryptocurrencies of 2017
Cryptocurrencies are taking control of digital markets and when some people thought they would never be as FIAT money, they proved to be more competitive than expected as some countries like Rusia, Japan, China and the EE.UU is more and more involved with this kind of economy, even thinking to integrate it into their regular economy, which is the case of Rusian President Putin and the cryptocurrency “Ethereum”. That’s why we’ve made a list of the most important digital currencies of 2017 so you can follow them.
The cryptocurrency pioneer and still number one in the market, it’s the most known cryptocurrency and is active since 2009. All the other cryptocurrencies have been created from its open-source and still more can derive from it. BTC supports Litecoin and other digital assets as well as working as the reference price for any e-currency trade. Was his creator Satoshi Nakamoto who invented the blockchain, the innovative financial system that supports cryptocurrencies.
Rumors said that it is probably the Bitcoin successor since it was born from BTC open-source but ended up being a completely isolated and different system with its own blockchain and its cryptocurrency trade (Ether) just as one of the different business options the platform offers. With a growth of 4000-5000% only in 2017, this system is the most revolutionary in the market and the facilities it offers, such as smart contracts, have drawn great investors and also small-quick investors.
One the newest and most promising cryptocurrencies, it was created on late 2016 and its primordial attractive is that it points to top security in every aspect. This works with “selective transparency” in which some data must be public, but other data can be private as the user requires. In this matter, transactions can be shielded with ultimate technology cryptography or “zero-knowledge proof” which is a system zCash team developed themselves.
Working as a Bitcoin complement, Litecoin is also one of the first cryptocurrencies, created in 2011 but with some innovations and evolutions. It basically works the same way as BTC but some details as confirmation speed which is considerably lower (2 seconds in front of BTC 10 minutes), this is thanks to the improved speed of its chainblock.
Quite innovative system, this cryptocurrency is made by the people for the people; it was completely financed by its own community. Its principal attraction is their “ring signatures” system which makes the transactions untraceable. The technique allows a group of cryptographic signatures that include one or more real but as they all appear to be valid, the real ones can’t be isolated so the transaction is completely safe.
Originally created as a Bitcoin parody featuring the popular “doge meme”, but the efficiency of the system quickly gave it the popularity it needed to enter the market.