What Is Cryptocurrency?
- cryptocurrency is a digital currency using cryptographic protocols that make transactions secure and impossible to fake or change..
- The most important feature of a cryptocurrency is that it is decentralized wich gives control to the users instead of an entity, business, bank or government. The owner of a digital currency has full control of it without interference.
- Cryptocurrencies have changed the world in how transactions can instantly reach anywhere on the planet.. This new technology alows tansfers that are simplified through use of public and private keys for security and privacy purposes. These currency transfers can be done with very low processing fees. This cuts out all of the middle men adding to the charges when you send money thru financial institutions.
A cryptocurrency "crypto currency" is a digital asset designed to be used as a form of exchange that uses cryptography to secure financial transactions, control the creation of new units, and verify the transfer of currency or asset.
Bitcoin, was released in 2009 as an open-source software. This made it known as the first decentralized currency. Now since bitcoin was released there are over 5,000 altcoins, or other cryptocurrencies have been developed, created and used.
Cryptocurrency transactions are processed and completed on a blockchain network. Blockchains are designed so that every computer connected to the network verifies and confirms the transaction before it is processed. This creates a safer transaction for everyone involved.
Banks have been very interested in what blockchain can do for their systems. But with cryptocurrencies like Bitcoin being developed to limit the necessity of banks altogether. Users and developers of crypto like the fact that it is a decentralized network that does not require the need of any other parties to process a transaction. So this cuts the banks out of the equasion. And gives all the power and control to it's users.
What is a Blockchain network?
A ,blockchain is a growing list of records, called blocks, which are linked using cryptography. Every block contains a cryptographic hash of the previous block, a timestamp, and transaction information or "data".
A blockchain is designed to be resistant to modification of the data. It is distributed ledger that can record transactions. This public ledger is managed by computers connected to the network that are all using the same protocol for inter-node communication and validating new blocks. Once a block is created, the data in any given block cannot be changed without making changes of all subsequent blocks, which requires consensus of the majority of computers connected to the system.
Blockchain was invented by Satoshi Nakamoto in 2008 by using information he shared with the world wich can be seen here. To this day the identity of Satoshi Nakamoto is still unknown. His invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem of most transaction systems without the need of a trusted authority or singlr server or system running it all on its own. The bitcoin design has inspired thousands of other applications and blockchains that are also public and are widely used by cryptocurrencies.
How are Cryptocurrencies used?
Most of them are just trying to be used as a way to transfer an asset. The more people buying a currency to use it to move assets, drive the worth of the currency up. Cryptocurrencies use blockchain technology to record transactions. The bitcoin and Ethereum networks are both based on blockchain. Facebook confirmed On 8 May 2018 that it is developing a new blockchain group. Developers tell us that Facebook is planning to launch its own cryptocurrency for users to make purchases on their system.
Blockchain smart contracts are proposed contracts that could be partially or fully executed or enforced without human interaction by creating programs that do them instantly. One of the main objectives of a smart contract is automated contracts that cant be altered. Smart contracts based on blockchain technology will reduce human error and optimize the use of contracts in general. Many viable smart contract have yet emerged with the recent acceptance of the technology it will continue to grow.
Blockchain with video games
There have been video games based on blockchain technology created. The first such game, Huntercoin, was released in February 2014. Another blockchain game is CryptoKitties, launched in2017. The game made headlines in December 2017 when a cryptokitty character - an-in game virtual pet - was sold for US$100,000. The future for new games is wide open.
There are a number of efforts and industry organizations working to employ blockchains in supply chain logistics and supply chain management. The Blockchain in Transport Alliance (BiTA) works to develop open standards forthese types of supply chains. Walmart and IBM are running a blockchain-backed system for supply chain monitoring. These new technologies will revolutionize their supply and ordering systems.
Online voting is another application of the blockchain. Blockchain technology can be used to create a permanent, public, transparent ledger system. They will use these systems to compile data on sales, tracking digital use and payments to content creators, such as wireless users or musicians. In 2017, IBM partnered with ASCAP and PRS for Music to adopt blockchain technology in music distribution.New distribution methods are available for the insurance industry such as peer-to-peer insurance, parametric insurance and microinsurance. All made possible because of the adoption of blockchain. Blockchains cause ideas to be created because they involve many collaborating peers. The uses can literally be endless.
What is Cryptology
Cryptology is the mathematics, such as number theory, and the application of formulas and algorithms, that create cryptography and cryptanalysis. . In order for data to be secured for storage or transmission, it must be transformed in such a manner that it would be difficult for an unauthorized individual to be able to discover its true meaning. To do this, certain mathematical equations are used, which are very difficult to solve unless certain strict criteria are met. The level of difficulty of solving a given equation is known as its intractability. These types of equations form the basis of cryptography.