CryptoCurrencies. CryptoCurrency. Bitcoin. Virtual Currency. Digital Currency.
CryptoCurrencies – What are they? Some definitions:
There is every chance you would have heard about CryptoCurrencies or Digital Currency or Virtual Currency. Or the most known Bitcoin. Bitcoin started in the year 2009 as the first CryptoCurrency. There are more than a thousand CryptoCurrencies now. Only about 30 or 40 very active. One needs a bit of effort to understand the Bitcoin generally and technically. Virtual currency and Digital currency are the names referred but CryptoCurrency is the right one.
‘ A CryptoCurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.’
‘A CryptoCurrency is a digital or virtual currency that uses cryptography for security.’
‘Cryptocurrency is a type of digital currency that uses cryptography for security and anti-counterfeiting measures’ .
For now let us simply understand as a system of money. Also, note that Cryptography is involved in it for securing transactions. Currency is used mainly for transaction and can also be a form of asset or wealth.
Money. Currency. Barter System to Mobile Payments:
Apple Pay started in the year 2014 is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using an iPhone, Apple Watch, iPad or Mac. This uses the currency OR MONEY of the country that it operates. Long before the money came in to picture, that is long long ago, so long ago, nobody knows how long ago, there was barter system. People just exchanged services and goods for other services and goods in return. This is an exchange system without money. In between, kingdoms introduced gold coins, and then even other metal coins. Then currency notes. Currency notes in paper and plastic. Currency is the most accepted system of money in our living memory. It is usually specific to a particular country and the country’s centralized banks printed, circulated and controlled the printed form of currency. And there have been accepted exchange rates between one currency to another currency.
How CryptoCurrency differs?
Please read the ChainScripts article about Trust. Third parties like Government and Institutions got introduced to the transactions. CryptoCurrency system is trying to do away with any third party. It goes for P2P Peer to Peer. No centralized ledger for transactions with CryptoCurrency. It is is a decentralized system. It is based on Blockchain technology. CryptoCurrencies are cross border and so not constrained to any particular country. There is definite total upper limit for them. When centralized banks print more currency notes and circulate, inflation is caused. This results in depreciation. With CryptoCurrencies this can be done away with.
Let us have more scripts on CryptoCurrencies in future.
/Malick, Chain Scripts, Chennai, India.
‘I have no special talent. I am only passionately curious’. -Albert Einstein