What is Cryptocurrency?

‘Cryptocurrency’ has become the hot topic in finance industry around the world yet most people are undeniably still fuzzy about the word. What is it? Where is it coming from? In the simplest definition, Cryptocurrency is a term used for digital currency or virtual currency in the net that uses cryptography as a security measure. Cryptocurrency and Blockchain technology are linked together as cryptocurrency needed blockchain technology so it can be used.

The nature of cryptocurrency that uses blockchain as an exchange medium to create and stored funds electronically is what makes it different from physical currency. The blockchain uses cryptography that will encrypt and control the creations of monetary unit apart from verifying and transaction for funds transferring. The use of cryptography will enable the users to check the transaction, but they will not have the access to alter any transaction that has been done, in another word no reversed transaction.

The basic concept of cryptocurrency since its establishment by Satoshi Nakamoto was said to be solving the double-spending problem faced by many around the world with a complete decentralized system. Cryptocurrencies that are decentralized attracts so many people to own this digital currency in order to have the access to control their own money without any interference from the central banks, or even authorities due to its anonymity.

The attempt to invent the digital cash has been failed since so many years before the establishment of the first and the most cryptocurrency ever, Bitcoin by Satoshi Nakamoto. Peer-to-peer network for file sharing network was where the inspiration to build a system without central entity for digital cash coming from by Satoshi Nakamoto. As per mentioned above, yes cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash and the list goes on are all decentralized!

As for example, a traditional money transferring transaction need to go to a bank to make sure the transaction will be successful, and the sender will be charged for the service. Unlike cryptocurrency, remittances are a lot easier and faster to do since it doesn’t need to use the service from the traditional bank. The remittance transaction is adequate with just the receiver cryptocurrency address. And the best part of all, using crypto, it will be an almost fee-free service and time-saving option! With the invention, cryptocurrency somehow revolutionized physical money and was claimed to be the world’s currency in the future by many leaders and entrepreneur.