CRYPTOCURRENCY

Cryptography is defined as a virtual currency, protected by cryptography, which makes counterfeiting or double-spending impossible. Cryptocurrency is also known as “DIGITAL CURRENCY”. One defining feature of cryptocurrencies is that they've been usually not issued by any central body. It makes the cryptocurrency theoretically immune to interference or manipulation by the government. A cryptocurrency is a modern digital resource consisting of a network spread across many computers. Most of the cryptocurrencies are decentralized .This decentralized approach allows them to take place outside of the control of the state authorities and governments.

TYPES: Bitcoin remains the most popular and valuable 1st blockchain-based cryptocurrency. At that time, there are thousands of different cryptocurrencies that have different functions and specifications. Some of them are Bitcoin clones or forks, while others are newly created currencies. Most of the competitive cryptocurrencies founded by Bitcoin's success, known as "altcoins," include Peercoin, Litecoin, and Namecoin, and as well as EOS, Ethereum & Cardano.

Advantages: Cryptocurrencies offer the potential to make it easier to exchange money directly between two entities, even without considering the third party like a bank or credit card agency. Instead, these transactions are secured with the use of password hashes and the encryption key and various reward schemes known as Proof of Stake or Proof of Work. A user's account address, has a public key in modern cryptocurrency schemes, whereas the private key is known only to the owner and is used to validate transactions. Fund transfers are done with minimal processing fees, which allow users to escape the steep wire transfer fees paid by banks and financial institutions.

Disadvantages: The anonymous aspect of cryptocurrencies makes them ideal for a variety of criminal activities, such as fraud and tax evasion. Crypto-currency advocates, however, often greatly value their confidentiality, citing privacy benefits such as protection for whistleblowers or activist groups living under repressive governments. A few of the cryptocurrencies are more secure & private.

Future: Many economists expect a significant shift in cryptography when the cryptocurrency will join the market. Besides, there is the likelihood that cryptography may float on the NASDAQ, adding legitimacy to blockchain & its applications as an alternative to traditional currencies. Some believe that all that crypto wants a checked exchange-traded fund.