The world is advancing in terms of technology in all sectors of development like agricultural sector and financial sector among others. Cryptocurrency is one of the latest invented digital currency secured under cryptography in the financial sector of development. Cryptography is a security feature that is used to secure currency from counterfeit. It has a distinguishing feature from other currencies in that it has no governing rules from any central authority rather it is controlled by a computer algorithm and its users. This makes its operations faster and free from government interference. The transaction of the service is easier as compared to other currencies.
In the recent past, cryptocurrency has hit the market due to easier and faster transfer of funds between the parties involved in the transaction. Cryptocurrency is a computer system that works best under certain conditions such as the emergence of new units, possession of such units, computer selection of the preferable instructions for possession changing, cryptographic proof of unit possession and decentralization. In the market, always there exists a risk for every kind of business and since cryptocurrency is not an exception it is associated with some risks such as losses, frauds, and thefts despite cryptography.
The networking of cryptocurrency involves miners who work with their computers to verify different transactions so as to be rewarded. The process of verifying these transactions is therefore referred to as mining. The success of this process depends largely on the types of computers the miners are using. The parties involved in these digital transactions should each have an account referred to as cryptocurrency wallet by purchasing initial coin offerings ( ICOs ) to be used in paying used to send or receive cryptocurrency. Payne is a specified software that allows cryptocurrency users to transact conveniently in every day to day business involving funds transfer.
The transactions involved in cryptocurrency are captured and stored in public ledgers referred to as block chain. These ledgers are accessible to cryptocurrency users. The transactions are public but the sender is unknown. When a transaction is carried out, it is given out to the public in form of computer codes where the viewer’s try to match using computer software. The first user to submit the correct match earns the initial coin offerings as a reward in form of ether. Ether is redeemable and it exists in four main subdivisions namely; Finney, we, Szabo and ether. In the ethereal world, wei are the most vital unit and its value is 10^-18 of an ether. Wei on its own can be broken down into three namely; kwei, mwei, and gwei which are convertible to wei in the following relations 10^3, 10^6 and 10^9 respectively. Ether as a subdivision can be further subdivided into kether, mether, gether and tether among others. These subdivisions of ether are convertible into Wei in the following relations 10^21, 10^24, 10^27 and 10^30 respectively. Finney and Szabo are convertible to wei in the following relations 10^15 and 10^12 respectively.
The mechanism is viewed by most people as a complex way of trading with money but that might not be true since once you master the basic concepts it becomes an easy way to go. For this reason, it has not yet become popular in many countries over the world. The popularity of cryptocurrency will depend largely on the legality of the same in many countries and probably the technical advancement in those countries. Cryptocurrency has been used in rewarding the winners in gaming sites like lotteries and casinos which has led to its warm welcome and acceptable in the market since it is not a scam and has a proven track of records.
Though this system is not a scam, it is still criticized and not legalized in some countries such as China and South Korea. In my opinion, I do recommend cryptocurrency trade be adopted since funds transfer is faster, secure and done with minimum processing fee and is more economical than the traditional systems once it is developed in the sense that it is able to raise more taxes as compared to traditional currencies. It is because of these features that cryptocurrency has been able to compete healthily with other currency trades despite being new in the market.
Cryptocurrency is the way to go as far as the online transaction is a concern. We always desire to have a free and easy means of the transaction without any third party. And all that thanks to cryptocurrency!