Cryptocurrency with blockchain
The rapid development of technology has turned the world into a global village, altering peoples’ habits, styles, practices and more over time. This societal revolution has also altered the way people pay for their goods and services.
Companies and customers no longer prefer cash payments as they once did, which has led to the uprise of contactless payments such as Apple Pay, iPay, and Frimi. Consumers may now pay for their goods and services at digital registers with a quick wave of their smartphones. Now, a new type of payment mechanism is gaining popularity and it is cryptocurrency.
Cryptocurrency is a form of digital payment system in which transactions are not verified by banks. It’s a peer-to-peer payment system that allows anyone from anywhere to send and receive money. Cryptocurrency payments are digital entries to an online database that specify specific transactions, rather than actual money that is carried around and exchanged in the real world. Transactions done using cryptocurrency are saved in a public ledger, with the currency itself being kept in a digital wallet, and are not issued by any central authority. The units of measurement in this system are “coins” and these coins lack real expressions when compared to traditional metal coins or paper banknotes.
Simply put, a blockchain is a decentralized ledger that records all transactions that take place across a peer-to-peer network. Transactions are timestamped and aggregated into back-linked blocks that are encrypted and organized into chains. These blocks include immutable transaction data that is regarded as trustworthy and secure. All blockchain network users can witness any transaction ever made by everyone on the network thanks to blockchain technology. Due to these features, blockchain-based systems are more immune to cyberattacks than non-blockchain systems. Three key aspects of confidentiality, data integrity, and availability are required for blockchain technology to be secure. There are three types of blockchain network architectures as follows.
- Public architecture with permissionless access – Networks that operate with untrusted members, like Bitcoin and Ethereum
- Public architecture with permissioned access – Networks that only deal with trusted members, like Ripple
- Private architecture with permissioned access – Networks that are open only to trusted members of a defined community, like Bankchain and FiberChain
Permissioned blockchains are a safer and wiser choice than permissionless blockchains, which create too many compliance concerns.
As already stated, Bitcoin was the first blockchain-based cryptocurrency, and it is still the most popular one. However, now there are lots of verities of Cryptocurrencies with their own features. Some are Bitcoin clones, while others are entirely new currencies built from scratch. Some of the competing cryptocurrencies created by the influence of Bitcoin’s success include Litecoin, Peercoin, and Namecoin, as well as Ethereum, Cardano, and EOS. The total value of all cryptocurrencies is currently estimated to be over $1.5 trillion. Bitcoin now accounts for more than 60% of the total market capitalization. Some of the cryptography used in cryptocurrency today was designed for military reasons. The government attempted to regulate cryptography in the same way that it regulates guns, but the people’s right to utilize cryptography was protected on grounds of freedom of speech.