Cryptocurrency


downloadAlthough there have been many discussions happening around the globe on the future of cryptocurrency and opinions are in different hue and nature , many of them say that it is going to be the future how the world is going to transact or some other says cryptocurrencies are just a bubble which is not going to last too long. But the reality is that value of this decentralized currency has been going up for quite some time. Majority of the central banker’s has not accepted this form of the value of currency stored in digital form, however, the demand for cryptocurrencies has been going up day by day. The question largely would be what will be the implications if across the world people start using this form digital currency more often than usual. Yes if that happens world would witness a new form transactions where no government or central bank having any control or right on the transactions, You can transact with anyone from the across the globe immediately without any hassles.

Demystifying Cryptocurrency

At present, if we want to buy something through online we initiate transactions from our end, the bank or the credit act as an intermediary between the two ends. These intermediaries like bank or card company charge you with certain transaction cost as well as helps them track our transactions and our buying behaviour because everything transactions pass through a central ledger maintained by the bank where all the transactions will be captured. So if you want to keep the transactions directly between the buyer and end-user cryptocurrencies is the answer where nobody can track the transactions and its information. So in 2008, a new innovative idea was born where no banks or card companies could maintain a central ledger, But in the case of cryptocurrency instead of the central ledger, it becomes decentralized where real-time ledgers were created at every point of transactions called blockchain.

How it benefits

 This helps to create direct transactions without any intermediary.
 No restrictions for transactions across the national borders.
 Future wealth could be stored in cryptocurrencies without any theft and fraud
 No government or central banks have the control to freeze the account as they are able to do now.
 Unlike the currencies which are at present issued by central banks, Bitcoins are not issued by central banks.

Prominent cryptocurrencies available today

1) Bitcoin
2) Litecoin(LTC)
3) Ethereum(ETH)
4) Zcash(ZEC)
5) DASH( Previously known as Darkcoin)
6) Ripple(XRP)
7) Monero(XMR)

Still among the pack Bitcoin has been the most favourite among the users and followed by Ethereum and Ripple which are mostly used for enterprise solutions. But how these new digital currencies are going to change the way we transact now remains to be seen. In our country, RBI and Govt have not given green signal to accept the digital currency but constituted a committee to study its prospects and who knows central bank itself would come out with its own form of cryptocurrency. Let’s keep our fingers crossed and see what happens, but one thing is sure such technologies are going to disrupt the way at least the coming generations are going to transact in the future.

 

Advertisements