Cryptocurrencies have changed the way money moves and also opened up a volatile world of unimaginable trading and investment opportunities. Here you can read about the history, blockchain technology, revolutionary salaries and how convenient it is to trade the most important cryptocurrencies with forex brokers.
A short history
The first cryptocurrency (bitcoin) came into being in 2008 when pseudonymous Satoshi Nakamoto invented a decentralized electronic cash system that uses a peer-to-peer distributed timestamp server to prevent double spending. This distributed server generates a calculation certificate for the timeline of transactions.
Revolutionary Blockchain Technology
In inventing this payment system, Satoshi also pioneered the first blockchain database, which is an element of this system. Since then, many other cryptocurrencies have emerged, most of which use more or less the same type of currencies with blockchain technology as bitcoin .
What is so amazing about blockchain technology is that it can be used to improve a wide variety of processes in different industries. For example, some players in the financial services sector have begun to use blockchain technology to implement much more transparent, efficient, and less expensive systems. The blockchain automatically performs certain functions when certain conditions are met. These smart contracts are also self-sustaining.
What is a cryptocurrency?
A cryptocurrency is a digital or virtual currency that is usually created by computers performing careful mathematical calculations, thereby converting the stream into long lines of code of monetary value. This calculation is done in a distributed network and is called cryptocurrency mining.
Although not all cryptocurrencies are created in this way, most prominent ones do. The algorithm commonly used for mining cryptocurrencies is a declining supply algorithm that limits the supply of these cryptocurrencies using encryption techniques.
Simply put, this type of algorithm ensures that as more and more parts of the cryptocurrency are mined, mining will gradually become more difficult and resource intensive. If the supply of a currency is limited, it can help ensure its value.
The mining of cryptocurrency is gradually becoming more difficult and resource intensive, as is the mining of natural minerals.
The encryption techniques used to mine cryptocurrencies, coupled with blockchain technology, also make it easier to control transfers between users of a given cryptocurrency.
Bitcoin miners are rewarded for processing payment in the Bitcoin network and for mining new “blocks”.
About cryptocurrency payments – Bitcoin example
- Irreversible – Once a bitcoin transaction has been confirmed, no one can undo it.
- Cheap – A bitcoin transaction can move thousands of dollars at minimal transaction cost, which is on average less than a US dollar. The cost of bitcoin transactions varies depending on the speed of the desired transaction.
- Fast – The speed with which transactions are processed depends on how much users are willing to pay. Bitcoin transactions can usually be confirmed within a few minutes.
- Global – Bitcoin can basically be sent to anyone, anywhere in the world.