What is Cryptocurrency? A Complete Guide 2020
In this Blooming technology world, Cryptocurrency got a special place because of it is beneficial traits. Thus leads to the development of numerous Cryptocurrency Development Company but only a few sustained in the Industry, where Developcoins is one of them. Developcoins is the Predominant Cryptocurrency Development Services Provider and became an Outstanding Crypto Developer because of its unique services.
Such a superior organization is going to share about a piece of knowledge about the Cryptocurrency. It is a good opportunity to learn about cryptocurrency from the direct Cryptocurrency Creation Services Industry peoples. Let's have a lookout about the Cryptocurrency here…
Table of the Content
- Definition Cryptocurrency
- Origin of Cryptocurrency
- What is Bitcoin?
- Difference between Altcoin and Bitcoin
- Cryptocurrency Working Process
- Role of Cryptocurrency in the Business World
- Cryptocurrency price prediction 2020
- Traits of Cryptocurrency
- Cryptocurrency Authorized Countries
- Pros and Cons of Cryptocurrency
- Future of Cryptocurrency
Explore about the Cryptocurrency now…
Before we move on to any topic, the basic question of ‘what is what’ is needed to be answered. Which will be a great aid to known much about the topic. So, let’s see what is meant by Cryptocurrency?
Cryptocurrency can be another vise known as Virtual coin or digital asset, which is used as a medium of exchange, mostly used for financial transactions. It is build based on the Blockchain technology to achieve the Decentralization methodology. This Decentralized method uses distributed ledger technology and it can also be referred to as a public financial database.
In the simple term, instead of currency this crypto coins and tokens are used for the online transaction. Each cryptocurrency has a certain value and it may differ based on it is development.
Origin of Cryptocurrency
In the early 90’s this concept was introduced and had many backdrops to itself. Though without give up, the constant repetition of attempts results in success. Finally, the fully decentralized payment system is launched in 2009 by Satoshi Nakamoto.
Where after that diverse crypto coins and tokens are started to create and use in the global digital market in a wide range. For various purposes now this cryptocurrency is started to use in diverse fields.
What is Bitcoin?
Bitcoin is the first invented Cryptocurrency in the world. Bitcoin does not have any physical appearance but it is stored in the computer, in the form of virtual currency. This Bitcoin first transaction successful held in 2009, where it is whitepaper is released in late 2008. They are also known as BTC.
This Bitcoin acts as a model for all other cryptocurrency and it is popularity reached a peak. Even when the numerous cryptocurrency introduced, this Bitcoin market doesn’t went out. Bitcoin values are not standard ones and had few drawbacks too, because of that other altcoins are created. Even when some altcoin features are ahead than the Bitcoin, though everyone still uses this Bitcoin and it got a standard place in the market.
What is Altcoin?
Altcoin is the common name of all cryptocurrency except Bitcoin. Whatever the coins and tokens introduced after the Bitcoin, they are referred to as Altcoin. They are numerous altcoins are developed in the Industry, some are listed below as follows,
- Bitcoin Cash
Each Altcoin is developed with various intentions and uses the diverse algorithm for the creation. The algorithm used to create the cryptocurrency coin is based on the intention and each altcoin has different values.
Difference between Altcoin and Bitcoin
The altcoin is created by keeping Bitcoin as a model, though even comparing both features and advantages, the altcoin is an Outstanding one but Bitcoin is yet standard cryptocurrency in the Industry and none of the altcoin values are overcame by Bitcoin.
It means that both Altcoin and Bitcoin have their own features with rewards. The brief comparison and difference between them is given down as continues,
- Transaction Management - The speed of transactions varied.
- Security - Altcoin provides high security than Bitcoin.
- Script language - Based on the goal, script language will also vary.
- Mining - Mining timing has differed between them.
- Block space - The storage space is also highly different among them.
Cryptocurrency Working Process
The cryptocurrency has a peer-to-peer connection because of the Blockchain concept. In each block, a detail is stored and recorded for future purposes. This Cryptocurrency working procedure can be noted as step by step process, which is explained in the below.
Step1: Transaction - Whenever a person planned to buy or sell anything, the transaction obviously happens there. And it becomes a must when there financial exchange plans to take place.
Transaction Process - It is actually held with help by a public key and private key. By the private key, the coins are sent and received, where the public key is like act as a message. This public key can be seen by anyone but can’t be used. It can only be used by respective persons, who have authority over the respective private keys.
Step2: Mining - After choosing the amount and selecting a sent option, then this mining process takes place. This mining is an important step and it is timing are given high preference while the creation as well as on the usage of the respective coins.
Mining Process - Mining is nothing but a validation process. After the transaction held, it is validated and stored in the Blocks. This process is known as the Mining process.
Step3: Wallet - Nowadays, every digital asset are stored in a wallet for safety precautions. The name itself acknowledges it is usage and purpose. There are numerous cryptocurrency wallets are developed and available for usage. Multi Crypto Wallet becomes a predominant one in the current situation because of the wide usage of various crypto tokens and coins by the single peeps. Some of the Cryptocurrency Wallets are mentioned as follows,
- Desktop Wallet
- Mobile Wallet
- Software Wallet
- Hardware Wallet
- Full Node Wallet
- Custodial Wallet
- Web Wallet/Online Wallet
- Coin-specific Wallet
- Network-specific Wallet
- Universal Wallet
Based on the people needs the wallets are used and the highly preferred one in the Industry now is Desktop Wallet because of it is traits.
Role of Cryptocurrency in the Business World
In the current Business World, Cryptocurrency plays a supreme role and made a mild stone in various platforms and finally started to show it is influenced in all fields related to the Business world too, where cryptocurrency started to become a part of it. Cryptocurrency doesn’t alone use for the financial transactions but also started to aid in various and some examples are mentioned here.
- ICO Token - This token is used for collecting the funds for their respective business investments.
- Ethereum - It is one of the famous altcoins, which enabled Smart Contract and DApps.
- Litecoin - Which is referred to as ‘silver to bitcoin’s gold’, is vastly used among the merchants for the speedy transaction.
- Zcash - For the extra security and privacy purposes this Altcoin is used.
Instead of transferring money, people begin to assign the coins for their trades instead of an exchange of amount and the response for this idea went wild. That it made the cryptocurrency as a part of the Business world and slowly earned the trust of the authorized persons plus kickoff to get a place like mandatory one.
Cryptocurrency Price Prediction 2020
As know for everyone that the Bitcoin was the first launched Cryptocurrency in 2009, it price was less than one cent on that year. And after that, the Bitcoin value is raised every year and expected to reach $20,000 in early 2020. But the active fundamental and technical catalyst made a chance of the hope by increasing it to $25,000.
To know much about the Bitcoin and Altcoin prediction in 2020, explore here
Cryptocurrency Authorized Countries
Cryptocurrency usage is becoming world-wide and also got a name as authorized one, while other countries are still discussing it. Anyway, not all the country uses this precious cryptocurrency as an official thing for their trades. Here lets we can see, which countries allow cryptocurrency usage as an official one.
- South Korea
These are some of the countries which use cryptocurrency as legal one or on their own risk. To know much more about this topic, explore here.
Traits of Cryptocurrency
Here are the top-notch features of the cryptocurrency, which is must be known before using any cryptocurrency. They are,
- Fast and Global
- Highly Secured
Irreversible - Once the transaction held then there is no back-off. It means that, if the virtual asset is transferred then it cannot be revered.
Pseudonymous - Neither parties account identifications are attached to the real world but the accounts and it is authorized persons are real. Simply it can also be referred to as a virtual thing among the existent world.
Fast and Global - Whatever the crypto transaction and from wherever it may occur in the world, it is very speedy. The only basic thing needed for the trade of cryptocurrency is a network that is the internet.
Highly Secured - Even when the world went ahead in technology, still people relay on lock and key to keep their assets safely. Therefore, these virtual coins and tokens are stored and transferred with the aid of public and private keys for security purposes.
Permissionless - When the currency dealing occurs, it will be transferred in the acknowledge of the Bank System. If the bank serves showed an error or has an issue, it will be reflected in the transaction. And these bank systems will also assign a fee for the transactions. So, to avoid these kinds of things, the cryptocurrency system becomes a permissionless one. Without any third party involvement, the cryptocurrency exchange held successfully.
Pros and Cons of Cryptocurrency
Anyway, whatever the concept boomed and introduced in the world, it has its own pros and cons. So, checkout about the cryptocurrency benefits and non-benefits here,
- Secure transaction
- No third party involvement
- Stored safely
- Multi Cryptocurrency Wallet
- Fast transfer
- Recorded every trades
- Can refer transaction history
- Easily Hacked without wallet and keys
- Irreversible once the transaction held
- Everything Virtual except the account address
These are the few pros and cons of the Cryptocurrency Industry. Most of the cons are overcame and the remaining are in research to overcome to become a very useful system for the world.
Future of Cryptocurrency
This Predominant Cryptocurrency bloomed in the late 90’s and now started to show it is influenced in various platforms. Even when it has backdrops and banned by some countries, it is still alive and is used widely. The expectation of the global market and the traders is that the cryptocurrency will become an easy and mandatory one in the world for all sorts of transactions. That is because of the cryptocurrency beneficial features.
After reading and getting knowledge about it. Are you Tempted about cryptocurrency? Want to develop Cryptocurrency for your own? Need to meet end-to-end cryptocurrency services provider? Wish to create a cryptocurrency at affordable fare?
For all these questions, their simple and single answer that is Developcoins. Developcoins is the Eminent Cryptocurrency Development Company. Which offers complete cryptocurrency services from creation to launching at affordable cost and they are known for their Outstanding Services which is established in both on-shore and off-shore platforms.