In this digital era, I think nobody wants to deal with the trivial stuff in life manually anymore. If we have the ability to make anything easier, then why not?
Cryptocurrency is one of the instrument now being developed that I see will reshape how we do things in the future. So let’s indulge in the vast information available on the internet to know this bad boy a little bit.
According to Cryptocoinsnews, Cryptocurrency is medium of exchange, just like any other currency, made possible through certain principles called Cryptography. As analogy, you can imagine it as electricity converted into lines of code with monetary value. Simply, it is a digital currency. The first and the most used cryptocurrency is Bitcoin, made by pseudonymous developer Satoshi Nakamoto. There are also another cryptocurrency such as Litecoin and Ripplecoin, usually called Altcoin.
In my head, cryptocurrency and fiat currency work the same way. Both are money, but one is not physical in form, the other is. But there are quite the different among both currencies. Their value. Fiat currency is being controlled by government through central bank such as Bank Indonesia or the Federal Reserve System. Cryptocurrency is fully decentralized and not being controlled by single party. So no personal interest can interfere the value of digital currency. Also cryptocurrencies are designed to decrease its production over time. Satoshi Nakamoto designed Bitcoin’s number on 21 million and it will never exceed that number. That creates market cap on them. This system is so different with how fiat currency works where government constantly print out money, hence the inflation happen.
Even though there are a lot of cryptocurrency specifications circulating in the industry, most are derived from one of the two protocols; Proof-of-work or Proof-of-stake. All cryptocurrencies are managed by group of people called cryptoccurency miners who are members of the general public that have set up their gadget or ASIC Machines to participate in the validation and processing of transaction.
There are a lot of other information on cryptocurrency and what I have wrote above can only be classified as a short introduction to cryptocurrency. Let’s learn together and see ya on the next post! Have a good day!