Cryptocurrency- Things to know
Crypto currency is a digital or virtual currency that is considered a medium of exchange. It uses cryptography to secure and verify transactions as well as controlling the creation of new units of a particular electronic currency (refer more at crypto reviews of Vkool.com)
1. History of virtual currency
People tried a lot in creating a digital currency with systems such as Flooz, Beenz and DigiCash during the 1990s which was appearing on the market but failing. There are many causes for their failure such as fraud, financial problems and even friction between employees and managers. Interestingly, all of these systems use the Trusted Third Party method which means that third party companies authenticate and facilitate transactions. Furthermore, because of the failure of these companies, the creation of a digital money system is considered to have been lost for a long time.
After that the group of programmers introduced Bitcoin in 2009. Satoshi describes it as a “peer-to-peer electronic cash system”. It's completely dispersed, meaning no servers are involved or have no control center at all. The concept is quite similar to peer-to-peer networks for sharing documents. One of the most important issues that any payment network has to address is spending twice as much. It's a fraudulent technique of spending amount of money twice. The traditional way is to use a trusted third party as central server to save your balance and transaction records. However, this method always requires some authority to control the funds and all personal details.
In addition, in a decentralized network like Bitcoin, each participant needs to do this work. This is done through Blockchain - the public accounting book of all transactions that have ever happened in the network, available to everyone. So, we see all the account balance. In fact, if you read the crypto reviews in vkool, you will see the information very clearly.
Each transaction is a file containing the information which is known as wallet coins of the sender as well as the person and the number of coins to be transferred. Transactions must also have the sender's signature in their own code. All this is called cryptography. Finally, after confirmation, transactions are broadcast in the network. In a crypto currency network, only new coin-operated machines can confirm transactions by cryptography. They receive legitimate transactions and then spread between networks and each additional node receives it into its database. Once the transactions are confirmed, they will be saved and can not be tampered with, a digger will be entitled to and pay the transaction fee.
Moreover, according to crypto reviews, any crypto currency network is based on the absolute agreement of all participants about the legality of the account balance and each transaction. If the nodes including the server and the intersection of the network do not agree with one or more account balances, the whole system will stop working. However, there are many rules programmed in the network to prevent this from happening. Therefore, crypto currencies are called electronic money because of the consistent process between servers ensuring a robust cryptography system. Along with the factors mentioned above, the condition that third parties need is redundancy with this tight system.
2. What can you do with crypto currency?
If you read about crypto reviews, you will know that you can do useful things with crypto currycy.
- Buy goods
In the past, trying to find a merchant that accepts electronic money is extremely difficult or impossible. However, today is completely different, there are many online and offline merchants who accept Bitcoin as a form of payment. They include large business houses like Overstock and Newegg to small shops, bars or restaurants. Bitcoins can be used to pay for hotel rentals, airline tickets, jewelry and even college degrees. The digital currency such as Litecoin, Ripple, and Ethreum and so on are not so widely used. Moreover, users of crypto currencies that are not Bitcoin may change to Bitcoin. In addition, there are many gift cards available on websites such as Gift Off, which accept more than 20 types of crypto currencies. With gift cards, you can buy anything with electronic money.
- Virtual money investment
Crypto currency is a very risky investment. Their value is constant, unlike other assets. Moreover, they have not been fully controlled so there is always a risk of being blocked in certain areas and any electronic trading platform can be hacked. However, buying bitcoin is quite easy; there are many trading floors that are trading BTC. BitDefender is starting to sell Litecoin, Ethereum, Monero, Ripple and so on. There are several different ways to trade coin; you can trade directly with the Kraken, the seller or ATM bitcoin. Furthermore, once you have purchased crypto currency, you need to store it. The majority of trading floors offer account wallet services. However, they are not very convenient; you should save your property offline on the computer hardware, or even invest in wallet management software. It's a safe way to protect your coins and get better control.