Imagine you're having a conversation with your friends now. At some point in this conversation, someone's going to bring cryptocurrencies.
Now cryptocurrencies are something that everyone wants to talk about, but no one really knows how they work, so today, I'm going to fix that I am route from simply learn, and this is cryptocurrency. explained since man world currency has been an essential part of our lives in the caveman they use the barter system now the barter system involves goods and services being exchanged among each other, so now we have a situation where a caveman is exchanging seven apples and getting oranges in return now the barter system fell out of use because it had some glaring flaws now these flaws include having people's requirements coincide for example say you have Phi apples and your friend has five oranges you want some of his oranges now until and unless your friend has a requirement
For the apples that you own, he'll not be ready to make an exchange for it. There's no common measure of value now since there's no common measure in terms of which value of a commodity can be expressed. There's a problem when you have to decide how many apples you are ready to trade for one orange or a mango; not all codes can be divided or subdivided, for example, you can divide a live animal into different smaller units the goods cannot be transported easily now unlike our modern currency fits in your wallet or your mobile phone the goods that you own can not be taken with you everywhere. you go after realizing that the barter system then work very well currency went through a few iterations in 110 BC an official currency was minted in thousand 250 AD gold platedFlorence was introduced, and this was used across Europe and from 1680 to 1980paper currency gained widespread popularity and was used across the world this is how
Modern currency as we know it came into existence; modern currency included paper currency. And coins, credit cards, and digital wallets. For example, you have Apple pay Amazon to pay DM, PayPal, and so on. All of this was controlled by banks and governments now this means that there was a centralized regulatory authority the delimited how paper currency and credit cards worked; now imagine the scenario of doing an online transaction here you're thanking your friend for paying for your lunch are you saying that you're sending the money to their account now this transaction takes place successfully. Still, there are several ways where this could have gone wrong. They could have been a technical issue at the bank; for example, the systems could have been the machines.
Weren't working properly and so on that means there's a central point of failure. which is the bank the user's accounts could have gotten hacked, for example, they could have been a DDoS attack or identity theft and so on the transfer limits for that account were exceeded this is why the future of currency lies with cryptocurrency now imagine the transaction between two people in the future one of them has the Bitcoin app. There's a notification asking whether they are sure they're ready to transfer five bitcoins; if yes, processing takes place here; we're authenticating the users identity-checking whether they have the required balance to make that transaction and other things after that's done, the payment is transferred.
The payment is received all of this happens in a matter of minutes and is as simple as that this, in turn, removes all the problems of modern banking there are no limits to the funds you can transfer your accounts can not be hacked, and there's no central point of failure now as of 2018 therefore than 1,600 cryptocurrencies available now there are some popular ones like Bitcoin litecoin it's Harryamends each cash and a new
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