Homework Task 5
- What is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
What is Cryptocurrency?
The idea of Cryptocurrency was firstly introduced by a person called Wei Dai in 1998. This is a totally digital system so that we can't use these cryptocurrencies in our physical wallets. The major methods of cryptocurrencies use are encryption and cryptography. These techniques are similar to solving complicated math problems and securing these transactions use the blockchain method as a distributed ledger.
Cryptocurrency is a digital currency system that relies on a blockchain since every transaction is verified and secured through computers or nodes. So we can use alternate names for cryptocurrencies such as Digital Currency(digital tokens) or Virtual Currency.
Cryptocurrencies can replace the job which banks do without using a bank. In a traditional bank transaction, there is a sender, receiver and bank involves. And the other hand we have to pay some kind of relatively high transaction fee for that particular transaction. But if you consider about the same amount of transactions through cryptocurrencies then you'll be able to complete that within low fees and also avoiding banks, because cryptocurrencies use blockchain methods to verify the transaction.
Cryptocurrencies are base on decentralized systems therefore there is no person to control them, these are based on peer-to-peer which means end to end and there is no mediator.
Like every system, it also has some kind of flats so that if you lose your public key and the private key then all the money will lose from you because you'll never gain access to log in to that wallet. Anyway, the best way to avoid this problem is to store your public key and private key in an offline drive.
The Future of Cryptocurrency
In this chapter, I will express totally my personal idea about cryptocurrencies after studying several articles related to cryptocurrencies. So that these ideas have some fundamental stability. Let's move into the story.
Everyone will trust Cryptocurrency.
Now also we can see people are hurting to invest in the cryptocurrency market in the past several years. Still, some of the people in society don't believe this digital currency is a secure method of investing. I think in the future this mindset will change.
The knowledge about Crypto among the people will increase.
After some time people will self-study the market and they will realize what is the exact theory of Cryptocurrencies.
Many more smart contracts will arise
After the establishment of Bitcoin, the whole Crypto market changed likewise in the future people will invest thousands of money in Cryptocurrencies. Due to that reason, new tokens and new coins will arise.
New rules for the Cryptocurrencies
In the future governments will change their policies regarding Cryptocurrencies, because trading will become the main carrier of the future among Entrepreneurs.
From this article, I think you gain some idea about cryptocurrencies and what will be the future predictions.
This is all about my Homework task-5, Thank you all for the valuable time you spent on this article.