The term cryptocurrency may not sound alien for the people in crypto land, but yes it is alien to most of the crowd who knew little or nothing about the crypto world. The crytpocurrency concept is not something which was build overnight. It all started with the cypherhunk movement in 1980’s, Cypherhunk is an activist who tried to widespread the use of cryptography and the privacy enhancing technologies, for a political and social change.
Cryptogrpahy is an encryption technology which is heavily based on complex mathematical concepts and best practices of a computer which makes impractical to decrypt. The term cryptography originated from kryptos and graphein which means secret and writings. The secret way of writing here is refered to as the encryption which is done by complex maths and computer science algorithms which makes arduous to crack.
The origin of cryptocurrencies started with the origin of Bitcoin, which is a pseudonymous invention of blockchain by Satoshi Nakamoto. Satoshi also belongs to the group of cypher hunks. Bitcoin is considered as the synonym for cryptocurrencies, so to define cryptocurrency facts the simplified look at the Bitcoin helps to explain what is crytpocurrency, how it works and the implications of it.
Bitcoin which is a digital currency uses an encrypted technology called cryptography to secure itself for worldwide functioning. It is the first cryptocurrency post which numerous other cryptos were created which are called as Altcoins. But these cryptos were not into existence earlier, despite the prevalence of cypherhunk movement since 1980. The reason for it is the blockchain not being invented then. As said Bitcoin was a side product or an unexpected invention of the blockchain technology.
These cryptocurrencies would not have been possible without the so-called blockchain Technology. The blockchain is a global online database which can be used by anyone and anywhere with an internet connection. It is a decentralized public ledger of blockchain which exits on the internet and is shared among all the computers in the world and not just one central location. This system makes all the cryptos tamper-proof.
People usually mistake digital currencies to digital currency systems like PayPal or Pioneer, there is a huge difference between these two. The digital currency system runs on a centralized system of fiat currencies and Digital currencies run on a decentralized and open blockchain system. The fundamental difference between the two is control, distribution, and transparency.
The future of these cryptocurrencies seems to be bright and people around are slowly appreciating the fact of alternative currencies to that of a traditional one with the banking system and they may also create a revolution in the coming future.
Checkout the following infographic developed by our friends at Mrbtc.org on 33 Cryptocurrencies described in four words or less. Let us know your thoughts on the below infographic.