WHY CRYPTOCURRENCY METTER?

Hlo Everyone, In this article I'm going to be Explaining why Cryptocurrency Matters and is crypto really the future.

As you know, our everyday financial transactions rely upon a trusted third party to maintain a record of transactions. For example, when you do a bank transaction, the banking system keeps a record & guarantees that the transaction is safe & reliable. Likewise, when Akash transfers ₹500 to Kaushal using PayPal, PayPal maintains a central record of ₹500. debited from Akash's account and ₹500 credited to kaushal's. Intermediaries like banks, PayPal, and other members of the current economic system play an important role in regulating the world’s financial transactions.

Limitations of these Intermediate :

Fees :  Banks and companies charge large fees for facilitating transactions.

Cencorship : If Intermediateries decide to place restrictions on the movement of your money. They can do this with Cencorship.

Now I'm gonna explain crypto by taking the oldest and world popular crypto example :

Bitcoin’s “peer-to-peer electronic cash system,” launched in 2009 by an anonymous programmer (or group) Satoshi Nakamoto, was a watershed moment for the freedom of money. For the first time in history, people could securely exchange value, without requiring a third party or trusted intermediary. Paying in Bitcoin meant that people like Akash and Kaushal could pay each other directly, bypassing institutional fees, obstructions and intrusions. Bitcoin was truly a currency without boundaries, powering and connecting a new global economy.

Circulating supply :

₿18,660,000 (as of 20 March 2021)

Block time :

10 minutes

Supply limit.:

₿21,000,000

Distributed Ledgers : 

Bitcoin achieved this historical feat by using a distributed record. While the current financial system relies on the traditional central record of truth, the Bitcoin record is maintained by a distributed community of “validators,” who access and update this public ledger. Imagine the Bitcoin protocol as a globally shared “Google Sheet” that contains a record of transactions, validated and maintained by this distributed community. 

The breakthrough of Bitcoin (and general blockchain technology) is that, even though the record is maintained by a community, the technology enables them to always reach consensus on truthful transactions, insuring that cheaters cannot record false transactions or overtake the system. This technological advancement allows for the removal of the centralized intermediary, without compromising transactional financial security. 

Cryptocurrencies are held in cryptographic wallets identified by a publicly accessible address, and is secured by a very strong privately held password, called the private key. This private key cryptographically signs transaction and is virtually impossible to create fraudulent signatures. This provides security and unseizability. Unlike traditional bank accounts that can be seized by government authorities, the cryptocurrency in your wallet can never be taken away by anyone without your private key. Cryptocurrencies are censorship resistant due to the decentralized nature because anyone can submit transactions to any computer in the network to get recorded and validated

Securing distributed ledgers (Mining) :

One of challenges of maintaining a distributed record of transactions is security -- specifically, how to have an open and editable ledger while preventing fraudulent activity. To address this challenge, Bitcoin introduced a novel process called Mining (using the consensus algorithm “Proof of Work”) to determine who is “trusted” to make updates to the shared record of transactions

Do you know : 

the final bitcoin is unlikely to be mined until around the year 2140. However, it's possible that the Bitcoin network protocol will be changed between now and then.

What is AltCoins ? 

An Altcoin is an alternative digital currency to Bitcoin.

The word Altcoin is a portmanteau of "alternative" and "coin", to form "altcoin". It actually refers to a group of cryptocurrencies, ultimately all the cryptocurrencies other than Bitcoin

How many Altcoins exist?

As of today, over 5000 of these "alternative" currencies have been created worldwide.

Most popular AltCoins :

Some of the most well-known Altcoins (based on market cap) are Ethereum, Ripple, Tether, Bitcoin Cash, Bitcoin SV, and Litecoin.

Thank You For Reading 😊