What is Cryptocurrency?
Instead of a tangible piece of currency you can take with you, a cryptocurrency is a digital asset that can be exchanged. The “crypto” part stems from the use of cryptography for security and verification purposes during transactions. In using cryptocurrency for an exchange instead of fiat currency, crypto owners don’t have to rely on banks to facilitate transactions, and can successfully avoid the fees that come with using financial institutions.
Generally, cryptocurrency transactions are processed and completed via a blockchain network. Blockchains are designed to be decentralized, and so every computer connected to the network must successfully confirm the transaction before it’s able to be processed. Ideally this creates a safer transaction for everyone involved. It can also lead to you waiting awhile; one big complaint about Bitcoin is how long it can take for a transaction to go through.
Cryptocurrency transactions- put into a “block,” and the computers in the network get to work solving a complex mathematical problem. Once a computer solves it, the solution is shown to the others on the network, and if the whole network is in agreement that this solution is correct, that block is added to the chain and the transaction is completed. Multiple transactions in one block makes it harder to edit a single transaction; the network- constantly re-confirming the blockchain on its way to the latest block and notice suspicious edit made to one transaction in a block.
Because these currencies must be mined, there is a finite amount of them that can exist. For example, there are 21 million bitcoins (BTC). Blockchain is a big part of what has made crypto currency a household name. And its versatility led to the creation of many crypto currencies that meant to disrupt industries besides banks. The decentralized nature of the network seen as safer, and businesses – especially those with valuable assets -interested. Some companies have merely dipped their toes in the blockchain water. Other companies, like Overstock, have completely overhauled their business model to incorporate it.
Where Can I Find Cryptocurrency?
Few different methods of acquiring a cryptocurrency. A few of the different places you will be able to find cryptos include:
- Firstly, Crypto currency software
- Secondly,Crypto currency exchanges
- Thirdly, Crypto currency P2P (peer-to-peer exchanges)
- Finally, Crypto currency ATMs
Step taken by Facebook
Facebook- building a cryptocurrency designed to make it easier to transfer money on WhatsApp. The social media giant plans to use a digital currency to focus on small payments in India. Facebook-owned WhatsApp has gained traction in India, where remittance payments are big business. According to the World Bank, people sent $69 billion from other countries into India last year.