You’ve definitely come across the term ‘cryptocurrency’ very many times and you are probably wondering what is this cryptocurrency hype all about? Look no further as you are about to get a couple of your questions answered.
Let’s start with the basics. What exactly is cryptocurrency? Let me sum it up: cryptocurrency is a digital virtual currency which is intended to be used as a medium of exchange. It operates independently of a central bank and is used all over the globe.
How is cryptocurrency used?
Cryptocurrencies are released to the world through a process known as mining, where you must attempt a computational puzzle known as a hash before you can mine the currency. People all over the world compete to be first to solve a hash every day in hopes of receiving either a block reward or the amount of crypto they mined. You can also buy and acquire cryptocurrency, after which you are given a digital key to its address. Using this address, you can validate or approve transactions. Isn’t that entire process absolutely fascinating?
Cryptocurrencies also make use of open and closed source wallets which produce and keep coin keys on your computer. A good example is the multy.io crypto wallet which is very easy to use, secure, makes use of the best UI and UX and it has multiple blockchain support.
Examples of cryptocurrencies
As we know human beings are very inventive and almost daily, they invent new crypto coins. If I was to mention all of them I would require so much more than just a blog page, so let’s mention the most common ones.
o Bitcoin – the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.
o Ether – this particular coin applies in smart contracts and DAPPS.
o Lite coin – launched in 2011 and was among the first cryptocurrencies.
Others include: Zcash, Ripple, Monero, Dash, NEO, Cordano and EOS.
What are the uses of cryptocurrency today?
Cryptocurrency is the newest invention in the business industry and people are trying to incorporate the cryptocurrencies in all fields of business. Below are some of the common uses of the cryptocurrencies.
o Wealth management. Companies are giving their crypto investors an opportunity to manage their wealth without boundaries or restrictions. How exciting is that?
o Ethical business practices. The blockchain makes it possible to track every transaction with complete transparency, hence making it easier to observe all its users activities. Too bad for illegal business as they will have no choice but to engage in more ethical practices that build the economy.
o Paying for simple goods and services. The process of mass adoption of the cryptocurrency has already started. Popular cryptocurrencies like Bitcoin and ETH can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. We are going to tell more about what to spend your crypto on in one of our next posts, so stay tuned!
o De-corrupting charities. Cryptocurrency can be used to avoid corruption in charitable organizations. It keeps companies accountable thus eliminating embezzlement of funds which is why the World Food Program is currently using blockchain to distribute food donations to the hungry securely.
The future of cryptocurrencies.
Cryptocurrency is on the verge of going mainstream because of this, expect to see the governments around the world establish new regulations that could lead to the centralization of coins like the Bitcoin which could stabilize and determine its value.
As more businesses decide that there is an opportunity in digital currency, the value will naturally rise with the demand.
Others it differently. They predict that all cryptocurrency transactions will are expected to be significantly reduced due to regulatory and security issues. That, however, does not mean that it is at its end. While not all cryptocurrency platforms will last, as long as they continue to solve problems and adapt, there will always be value in cryptocurrencies in the foreseeable future. What is evident, to understand and adopt cryptocurrency, we need more use cases, that bridge the digital currency and the real world.
I am personally excited about the future of cryptocurrencies technology. Current innovations such as bitcoin, Ethereum, and others that are just beginning for this technology that can help revamp many industries. There is plenty of opportunity in this space, will you be a part of it?