April 8, 2019 10:03 am,
As the word itself says it has something to do with the cryptography and currency. Cryptography is the is the process which converts ordinary plain text into an unintelligible text or vice versa. But the modern cryptography deals with the confidentiality of the information which cannot be understood by any, its integrity which means the information cannot be altered and the authentication where the sender and receiver confirms on each other.
Putting all these pieces together cryptocurrency can be defined as a medium of exchange value similar to that of money, which exists in the digital world and relies on the encryption that makes transactions secure. The cryptocurrency is an alternative payment to the cash, cheques and credit cards. The technology behind the cryptocurrencies allows the user to send them directly to others without the interference of 3rd party like the banks. These cryptocurrencies are like virtual accounting systems, which keep a record of all the transactions. These transactions are bundled into blocks, which are cryptographically signed and the client who does the signing gets some of these virtual currencies in return.
These crytpocurrencies have many exciting uses such as sending money back to family without incurring a heavy international fees if the client is working in different country. The merchants need not worry about the payment fraud or the invalid checks. Bitcoin which is the most famous cryptocurrency has made everyone curious about the topic of crypto with its explosive rise. To conclude crytpocurrency is radically a new way of paying which makes all the transactions secure and also helps to get rid of the intermediaries like banks. This indirectly contributes to the reduction of commission fee. The main feature of cryptocurrency is its security, which is provided through blockchain technology. The technology has a network of computers which have an identical copy of the database and changing the records by a common agreement which is based on pure maths. The other main advantage of blockchain is the smart contracts, which makes it possible to create the users own cryptocurrency and issue their own token. Token is nothing but a privately issued cryptocurrency or a unit of value that a organization creates to regulate and self-govern the business model.
The token also empowers the users to interact with the products while facilitating the distribution and sharing the rewards and benefits of all the stake holders related to business.