Over the last decade the term ‘Cryptocurrency’ has been doing rounds all over the world. Since its inception in 2008, crypto currency has more or less forced the governments of prominent countries to recognise and adhere to its usefulness. But what exactly is cryptocurrency, why was it formed and most importantly who formed it. These are the few questions we are going to take on today.
Cryptocurrency is mainly a digital mode of payment that uses cryptography to secure its transactions, i.e. adding layers of security that prevents third parties to take a peek at the data. Unlike other currencies which a centralised system for security and transaction, crypto currencies doesn’t require any centralised system and works through a blockchain, which is a public transaction database, functioning as a distributed ledger.
In simple words, every transaction you do with crypto currency gets automatically recorded in a digital passbook of sorts which more or less stores the transaction permanently. This reduces the chances of record manipulation and hence results in no frauds.
The validity of each cryptocurrency’s coins is provided by a blockchain. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography.
Formed by Satoshi Nakamoto in late 2008, for the purpose of developing a peer-to-peer electronic cash system, the first crypto currency that came into the market was ‘Bitcoin’. It revolutionised the digital currency scenario back then and has since been the most highly valued crypto currency. But despite its humongous success as a digital currency, Satoshi Nakamoto, the pseudonym used by the person or group of people who formed cryptocurrency have never been identified and still remain a mystery to date.
Despite heavy criticism and major resistance from a section of people, bitcoin and other cryptocurrencies are still growing and has no plausible reason of stopping in the near future.
Written by : Utkarsh Upendra