CRYPTOCURRENCY MADE EASY
What is money and how is it created? The Government created money as a medium of exchange the products and services. Each government has its money system. Money is regulated and controlled by Bank as a centralized location. The cryptocurrency was created as an alternative to the money from these centralized banking institutions but still developed for financing and international exchange across the world. It is no coincidence that Bitcoin, the first working example, was invented in 2009 following the worldwide financial collapse of 2007/2008.
Blockchain popularity has grown tremendously in the last few years. Cryptocurrency is based on Blockchain technology and not controlled by any single institution. Instead, it works as a record of digital transactions that are independent of central banks. Blockchain Technology essentially eliminates the middleman, such as banks and allows buyers and sellers to transact directly with each other. This also eliminates the transaction fee. Replacing even a fraction of this with a blockchain system would give a huge result disruption to the financial industry. This has huge implications worldwide, especially the financial services market as the largest sector of industry, but also a massive increase in inefficiencies. Visa is one of the companies with blockchain technology that did come a long way in the niche. Previously in 2016, Visa introduced a blockchain platform that would deal with business-to-business payment services. AIA Group is also one of the large companies using blockchain for insurance purposes and will harness the power of blockchain and help share documentation and policy data in real-time in a secure channel.
If the cryptocurrency were cars then blockchains would be the roads. Each block contains the digital information of a transaction. A blockchain is a series of blocks, which altogether represent and record all the transactions that have occurred since its creation. These blockchains are recorded in a network of computers called nodes located all over the world, thus creating a decentralized network. Users interact with each other directly, thus removing middlemen and centralized authorities. The transactions are stored in the blockchain in distributed ledgers across this worldwide network which promises an immutable record for safety and security. Blockchains operate in contrast to traditional banks, which use a centralized ledger. There is no need for expensive headquarters so they are more cost-effective. Blockchains create digital freedom, allowing you to carry out transactions anonymously and use money without another party interfering.
Cryptocurrency tokens are stored in an encrypted Digital Wallet. These digital assets are unique and are unable to be copied thanks to the distributed ledger aspect of the technology. Ethereum was developed as an improvement on Bitcoin, primarily by using Smart Contracts. Smart Contracts are agreements between two parties that self-execute when all terms are met and automatically cancel if they are not met. Cryptocurrency will be the future of domestic and international transactions because of the convenience, simplicity, anonymity, and security.
We believe blockchain is a technological advance, will have wide-reaching implications and not just transform the financial services but many other businesses and industries. Blockchain is a secure database by design. The database is managed autonomously in a decentralized way through a blockchain system that distributed timestamping servers and peer-to-peer networks. The point is, the potential uses for this technology are vast and we predict that more and more industries will find ways to put it to good use very shortly. So, take time to learn about the different currencies on offer.