Before define cryptocurrency we divide this word into two separate parts Crypto and Currency.
Generally Crypto is the term that keeps the meaning of secrecy, privacy and encryption. And currency means money including coins and paper notes, every country is having their own specific currency. Cryptocurrency is also known as digital currency and it is medium of exchange which uses encryption techniques and algorithms that control and maintain the generation of units of currency and verify the transfer of funds by the help of cryptography. Cryptocurrency uses certain principles of cryptography, which is a method that store and transmit the data in a particular and specific form. Cryptography provides a very secure way of transactions and control over the creation of new coins.
The first cryptocurrency was Bitcoin that was created in 2009 but nowadays hundreds of cryptocurrency are available like: Ethereum, Dash, Monero, Ripple, Ethereum Classic, Litecoin, Augur, MaidSafeCoin, DigixDAO, Steem, PeerCoin, Nxt, Komodo and many more.
Bitcoin- It is the first cryptocurrency that was introduced in 2009 but still it is most popular and valuable cryptocurrency in the market because it proves the transaction verification system. Bitcoin was big stir in financial world when it was introduced by Satoshi Nakamoto. Bitcoin pioneered many of the techniques shared by other crypto currencies, also known as AltCoin.
BlackCoin- It is a peer-to-peer cryptocurrency and the basic reason to create this to prove the reliability of proof-of-stake verification system. It is quite secure and stable.
Dash- It provides peer to peer transaction fast with private and securely so it is called privacy centric digital currency, it provides instant transaction.
Dogecoin- It is highly secure cryptocurrency and main advantage of this is that it is a Script-based cryptocurrency today.
Litecoin- It can handle high volume of transaction and it reduces double spending attacks and the basic purpose of Litecoin is it improves proof-of-work currencies through few small tweaks.
Namecoin- It is also peer-to-peer verification technology and it is earliest alt coins. It provides help to make cryptocurrency possible to create a decentralized DNS.
Nxt- As its name defines it is a next or second generation of cryptocurrency. It is also an online medium of exchange but it more focus on decentralized system. Nxt provide toolkit that confer help to creating custom cryptocurrencies that are secured and track able.
Peercoin- It provides proof of work verification system and it is very secure. Many online retailers and charitable companies take payment in Peercoin with small digging. You can exchange Peercoin for other things like jewelry, video games and many more.
Primecoin- It is innovative cryptocurrency and it’s provided not only security and infer to the network but also generates specific chain of prime number to mathematical research. It is first cryptocurrency in the world those designed with scientific computing.
Ripple- It is different medium of exchange. In this currencies are converting into any other one, without trust on a central exchange. It has a unique architecture that’s why many retailers who don’t accept directly XRP, but ripple do have that potential to allow for more trade with many existing currencies.
Benefits of cryptocurrency
Cryptocurrency is digital currency and it is 21st century currency and we can say it is economy for future. As of now we can see and feel unsafe in economical and financial field, so cryptocurrency is a huge step and stir in economic world. Those provide secure and safe medium of exchange of funds and it escape from fraud and theft. Today 60% and more than it population use internet so this is easy to access for everyone. The most benefit of these it is recognize at universal level so transaction can cross the boundaries. Decentralization is also a big benefit of this because network is operates on peer-to-peer (user-to-user) bases and it does manage the transactions record in database.
List of Cryptocurrency benefits
Prevent to Spoof- Cryptocurrency is generated or created from code, it is digital money. It can’t be false or reverse arbitrarily by sender. In this cryptocurrency method sender do payment but they do not have rights to reverse the amount.
Prevent to Theft- Cryptocurrency system uses “push” mechanism that give permission to the cryptocurrency holder to send accurate amount to the merchant or receiver those they actually wants with no more further details or information. In that scenario we can easily identify the theft because person takes decision about what they are going to pay? And to whom are they going to pay?
Fast Settlement- Cryptocurrency provide quick communication and settlement between parties. When purchasing property that time needs to get approval by the third party but Bitcoin contracts can be design that adds third party approvals with references of external facts..
Easy Access to Everyone- If we see recent globe than majority says, approximately 2.2 billion peeps use the internet or mobile phones and remaining all rapidly run towards to catch new technologies and try to grab the market, so cryptocurrency is new for the market and easy to access.
Low Cost- In cryptocurrency cost of transaction is too lower and sometimes transaction charges of cryptocurrency is either nil or very low in value. The transaction only used for prioritizing the transactions.
Decentralization- Cryptocurrency use decentralization for globally uses. Block chain technology uses by global network of computers to jointly manage the database that records and save Bitcoin transactions.