What is a Cryptocurrency?

Basic Information

Since the earth has involved currencies have played an important role in our lives. In the ancient era, there was a barter system that involved the exchange of products. But the barter system lost its impact when a few of its flaws came to light.

Flaws Like :

People’s requirement needs to coincide - Which means that if you have 10 apples and your friend has 10 bananas if you want to barter apples to get bananas and your friend does not want apples, you cannot barter your apples.
There is no common manner of value - As there was no common measure in which the value of a commodity can be expressed, there is a problem when you have to decide how many apples you are ready to trade for one orange or a mango.
Not all goods can be divided or subdivided - For example, if you are selling your pet, you cannot divide it into pieces as it is a living being.
Goods cannot be transported easily - As now, unlike our modern currency fits in our wallet or our mobile phone. In the ancient era, our goods cannot be taken with us everywhere we go.

After realizing these issues, the following changes appeared.

In 110 BC, an official currency was minted.
In 1250 AD, gold-plated florins were introduced.

After this, our modern currency emerged, which included

Paper Currency and coins
Credit Cards / Debit Cards and digital wallets
Banks [which plays most important role]

But there are some Disadvantages which include

There can be some technical or mechanical issues at the Bank
Bank accounts can be hacked
Fraud and Scams

But in the case of cryptocurrency, there are no such disadvantages, as no third person is involved in the transaction.

As of now, there are more than 5000 popular cryptocurrencies which include

What is cryptocurrency?

A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange.

Some features of the cryptocurrency include:-

There is a limit to how many units can exist.
Easily verifies the transfer of funds.
Operating in a decentralized manner.

What makes Crypto so special?

Little to no transaction costs
24/7 access to money.
No limits on purchases and withdrawals
Freedom for anyone to use
International transactions are faster

What is Cryptography?

This is a method of using encryption and description to secure communication in the presence of some third party with ill intent.

Now we will discuss the 2 major Cryptocurrencies

Bitcoins And Ethereum

Bitcoin - It is a form of digital currency and is decentralized without a central bank. It uses blockchain to perform transactions on a peer-to-peer network.

Ether - It is a currency that is accepted in the Ethereum network. It works on blockchain technology to create an open-source platform to build and deploy the decentralized application.

There are some similarities between Bitcoin and Ethereum that is

They are the biggest and most valuable cryptocurrencies
Both of them use blockchain and mine currency using proof of work
Widely used across the world

There are some differences between Bitcoin and Ethereum that is

Bitcoin is used to send money to someone, while Ether is used as a currency in the Ethereum network.
A bitcoin transaction is manual, while in Ether, transactions can be placed manually and automatically.
Bitcoin transactions are slow and take 10 minutes to perform a transaction, while Ether transactions are faster and take about 20 seconds to perform a transaction.
Bitcoin has a limited existence, i.e., 21 million white Ether is excepted to be continuous but not excepted to exceed 100 million.