Different types of currencies are used all around the globe. It was challenging to trade as the rates of each currency were different. To bring a solution to this, Cryptocurrency was developed which has standard rates all over the world. This cryptocurrency is useful in many places. But first of all, let us know about Cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a virtual currency which is designed as a medium of exchange. Cryptography is used to control and verify all the transactions. In simple language, cryptocurrency is like regular currency.
Let us know about the history of Cryptocurrency.
History of Cryptocurrency
Many people attempted to develop digital currency during the 90s but unfortunately, they all failed. The reason behind these failures was the financial crisis, fraud and sometimes there were issues between the employees of the company.
In 2009, Bitcoin was introduced by a group of programmers or some anonymous programmer under the name of Satoshi Nakamoto. It was introduced as a people-to-people system and there was no decentralized authority or central headquarters for this system.
How to make use of Bitcoin?
In a digital payment system, the biggest issue is of double-spending. Sometimes it may happen that the amount is charged twice and to solve this issue, the concept of third- party payment gateway was introduced. But this also became risky as the personal details were in someone’s hand then that person could misuse it.
Bitcoin is a decentralized network and all its transactions take place via Blockchain which is a public ledger. Everyone could see the account balance of another person in the network.
Whenever any transaction is made with Bitcoins, a file is created which consists of the public keys(wallet address) of the sender as well as the recipient and also the information for the amount of coins transferred. This whole process is cryptography. In the network of cryptography, miners are the only people who can confirm the transactions by solving the cryptographic puzzle.
There are different types of cryptocurrencies other than Bitcoin also. Let us get some details about some of the important cryptocurrencies other than Bitcoin.
Types of Cryptocurrencies
- Litecoin (LTC):
It was launched in 2011 and it was the 1st cryptocurrency after Bitcoin. It is considered to be “digital silver”. Litecoin was developed by Charlie Lee who was an MIT graduate and also a former engineer of Google.
It was launched in 2015. It is a decentralized software platform that enables the user to create applications. Ether is the main component in the market of Ethereum. People use Ethereum to by other cryptocurrencies.
- ZCash (ZEC):
It was launched in 2016 and it is considered to be more secure than Bitcoins. It provides the users with transparency and privacy in transactions. In this system, all the record details are mentioned except the details of receiver, sender and the amount.
It was launched in 2014. The other name of Dash is Darkcoin. It is highly secretive. Darkcoin offers more anonymity than Bitcoin because it uses a master code of decentralized network which makes the transactions to be untraceable.
- Ripple (XRP):
It was launched in 2012. It is a real-time global network that offers its customers with low-cost international payments and they are instant. It was developed to transfer money from different countries at low rates and with a high level of transparency.
These were only a few types of cryptocurrencies but that’s not all. To know about some more cryptocurrencies visit here.
The concept of cryptocurrency is very huge. This was just an overview of Cryptocurrency. Stay connected with further articles to know about buying and selling of cryptocurrency, buying goods with cryptocurrency and also the other uses of it.