CRYPTOCURRENCY A DIGITAL CURRENCY NEWBIE'S REFRESHER

Satoshi Nakamoto, was a 64 year Japanese / American rose to have fame after the making of Bitcoin in the late 2009. Based on the block chain technology, its current price fluctuates at around $16000 per bitcoin with large variations during the day.

The base of the cryptocurrency is the block chain which records on its public ledger, every confirmed transaction. All users are asked to create a wallet on the Bitcoin system which then specifies the spendable limit. Like an OTP/PIN, the Bitcoin wallets require a private key or seed which is used to sign and confirm the transaction. Mining, or the process of confirming the transaction ensures the previously blocked transaction is not altered.

The bitcoin is infamous for the illegal transactions it could potentially fund. The anonymity of the transactions is what helps in the transfer of illicit funds. As many people purchase the bitcoins for the purpose of investment and not only as a means of fund transfer, the SEC has been raising several investor alerts due to the high volatility and security risk.

The other cryptocurrency which has gained significance since the evolution of digital currency is Ethereum — which has been built to be run without any downtime or interference from a third party. It has the second highest market capitalization after the Nakamoto’s brain child. Few other cryptocurrencies are Zcash, Litecoin, Dash and Monero.

This is how Cryptocurrencies Starts.