Cryptocurrency has become a popular topic of discussion for several years. However, in late 2017, with bitcoin futures trading began on the Chicago Board Options Exchange and the Chicago Mercantile Exchange, the conversation has seemed to reach its peak. But what is cryptocurrency? And what's behind the meteoric rise?
Such as money, cryptocurrency is a medium of exchange. However, cryptocurrency are virtual or digital, which means that there is no physical coins or bills that the owner of the currency had. The "cryptographic" part of its name comes from the fact that it uses cryptography to secure and authenticate the transaction. Moreover, a common characteristic of many cryptocurrencies is their decentralized nature: While the typical currency issued by the central bank, cryptocurrencies cut out the middleman as peer-to-peer. This decentralization is touted as one of the main benefits, as it will increase the speed of transactions and letting users avoid the cost charged by other banks and financial institutions are more traditional.
There are several cryptocurrencies are widely used. Among the largest is Ripple, litecoin, and Ethererum. However, the Bitcoin which remains the biggest and most talked about cryptocurrency.
What is Bitcoin?
Bitcoin was created in 2009, is credited as the first decentralization cryptocurrency. It is also the first cryptocurrency that has futures traded on the major exchanges. Bitcoin holders can use it just like other currencies in thousands of vendors, including overstock and Subway.
Bitcoin, though, has garnered widespread attention not only to the increase in popularity as a digital currency but also for what is probably the greatest innovation: blockchain.
What’s behind Bitcoin: Blockchain Technology
In the most basic terms, blockchain is a type of digital books and society. Bitcoin uses blockchain technology to retain information about how many Bitcoin owned and who owns it. Instead of having a physical currency, or even a digital file representing the currency, the individual has a claim to a piece of information that is contained within a large book blockchain.
So, when a Bitcoin transaction is made, the currency is transferred between the parties as a block of information to be added to the chain of historical transaction data. This "book" is the file public to be able to download a copy of it. the individual's identity is encrypted, however, and technology features are among the many reasons it is so highly praised.
Just as Bitcoin and cryptocurrencies are gaining in stature, blockchain expected to emerge as an important technology with a wide range of potential applications, as well. Blockchain can be used in everything from an accelerated transfer of title in real estate sales for international transactions-not to mention the people who have not even been thought of yet.
In other words we can say
Blockchain is a technology that supports Bitcoin and developed specifically for Bitcoin. So, Bitcoin is the first example of blockchain in action and without blockchain, there will be no Bitcoin. That's why the two names are often used interchangeably.
But that does not mean that blockchain and Bitcoin is same thing.
Bitcoin is a decentralized digital currency, electronic payment system or peer-to-peer, where anonymous users can transfer Bitcoins without the intervention of a third party authority (such as a bank or government). Bitcoin is one example of cryptocurrency, though; another cryptocurrency network is also supported by blockchain technology. So although Bitcoin uses blockchain technology for digital currency trading, blockchain more than just Bitcoin.
Cryptocurrencies are virtual money that is basically assets and is developed by the blockchain technology.
With the growth in the economy, there are thousands of cryptocurrencies in the world today. Cryptography technology is used by the cryptocurrencies to verify and transact money in a secure way. Blockchain app development services are the services that expertise in creating a digital platform for the exchange of decentralized applications for the benefits of the customers. It is basically the software that is developed in mobile apps that encourage cryptocurrency.