Cryptocurrencies emerged as a side product of another invention by Satoshi Nakamoto. A cryptocurrency is a digital or virtual currency that uses cryptography for security.
Announcing Bitcoin in the late 2008, Satoshi said he had developed “A Peer-to-Peer Electronic Cash System. “
Single most important part of Satoshi‘s invention was that he found a way to build a decentralized digital cash system which acted as the birth of cryptocurrency.
In simple words, cryptocurrency is “limited entries in a database no one can change without fulfilling specific conditions”.
A cryptocurrency like Bitcoin consists of a network of peers and every peer has a record of the complete history of all transactions and thus of the balance of every account.
Bitcoins can be created only when Miners solve a cryptologic puzzle and then can they build a block and add it to the blockchain.
Blockchain is a kind of a spreadsheet of transactions that each computer will store and handle.
A transaction is a file that says, “Bob gives X Bitcoin to Alice“and is signed by Bob‘s private key.
Cryptocurrencies are not secured by people or by trust, but by math. They are Irreversible, Pseudonymous, Fast and global and Secure.
Cryptocurrency takes away the control central banks take on inflation or deflation by manipulating the monetary supply.
Cryptocurrencies are digital gold. They are sound money that is secure from political influence and that promises to preserve and increase its value over time.
Bitcoin is the first and most famous cryptocurrency. Others include Ethereum, Ripple, Litecoin and Monero.
Revolution is already happening and people all over the world are buying Bitcoin to protect themselves against the devaluation of their national currency.
Cryptocurrencies are not recognised by the Reserve Bank of India (RBI) or any other authority in India, as a ‘currency’. So currently India plays a relatively small role in the global cryptocurrency market but there is a possibility that this scenario is likely to be changed in future due to its increasing demand worldwide.