Cryptocurrency
A Cryptocurrency (or Crypto Currency or crypto
for short) is a digital asset designed to work as a medium of exchange wherein
individual coin ownership records are stored in a ledger existing in a form of
computerized database using strong cryptography to secure transaction records,
to control the creation of additional coins, and to verify the transfer of coin
ownership.
It typically does not exist in physical form (like
paper money) and is typically not issued by a central authority.
Cryptocurrencies typically use decentralized control as opposed to centralized
digital currency and central banking systems.
When a cryptocurrency is minted or created prior to
issuance or issued by a single issuer, it is generally considered centralized.
When implement with decentralized control, each cryptocurrency works through
distributed ledger technology, typically a blockchain, that serves as a public
financial transaction database.
A cryptocurrency is a system that meets six
conditions:
1.
The system done not require a central
authority; its state is maintained through distributed consensus.
2.
The system keeps an overview of
cryptocurrency units and their ownership.
3.
The system defines whether new
cryptocurrency units can be created. If new cryptocurrency units can be
created. The system defines the circumstances of their origin and how to
determine the ownership of these new units.
4.
Ownership of cryptocurrency units can
be proved exclusively cryptographically.
5.
The system allows transactions to be
performed in which ownership of the cryptographic units is changed. A transaction
statement can only be issued by an entity proving the current ownership of
these units.
6.
If two different instructions for
changing the ownership of the same cryptographic units are simultaneously
entered, the system performs at most one of them.
TOP
5 CRYPTOCURRENCY
Bitcoin
First released as open-source software in 2009, is the
first decentralized cryptocurrency. Since the release of bitcoin, other
cryptocurrencies have been created.
Ethereum
Ethereum is seen more as a medium of exchange than a store
of value by cryptocurrency users. Ethereum started a transition in its
structure from proof of work to proof of stake, basically a shift aimed at
making transactions in it cheaper, faster and less electricity intensive.
XRP or Ripple
XRP is the currency created by Ripple Inc, a US
company in 2012. XRP was designed for payments and remittances and operates in
a manner similar to SWIFT, the network for moving money between banks.
Tether
USD tether or USDT is a cryptocurrency that tries to
mirror the US dollar on a 1:1 basis. Tether is issued by Tether Ltd, a company
owned by the operator of Bitfinex, a cryptocurrency exchange in 2014.
Litecoin
Litecoin is a Bitcoin spinoff launched by a Google
engineer Charlie Lee in 2011 with the idea of speedier transactions than
conventional bitcoin. It differs from bitcoin in some of its technical
processes.
Written by Arshad. A
