What is cryptocurrency?
Cryptocurrency based on one computer algorithm digital currency That is, due to cryptocurrency being a digital currency, neither you can touch it, nor any government or any kind of bank or institution has any control over them.
The cryptocurrency works on a peer to peer electronic system. Where does the blockchain go, which not only proves to be effective in its transactions, as well as it tracks cryptocurrencies like bitcoin etc. Today there are more than 4000 cryptocurrencies in the world.
The transaction of these currency means first person i.e. with whom you are trading and second person i.e. you are only in between these two, which gives you more profit but it also makes them unsafe to some extent. However, cryptocurrency has its own security with an encryption key. Like bitcoin, digital signature is used to secure its transactions, in which both the parties are given an encryption key which makes their transaction secure. Which is done under the supervision of laser. Now the question must have come in your mind that what is laser? What else works? so know
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What is laser? What else works?
When a currency is unique in itself, its ledger must also be unique, which is called a ledger. The main function of the ledger is to list entries in the database and keep all transactions public and transparent. It is an automatic and self-governing means there is no question of any outside interference in it. But it also has some drawbacks that do not prevent the use of cryptocurrency in a wrong way.
Advantages of CryptoCurrency
Let us now know the advantages of cryptocurrency which makes it special and different from physical currency.
- As you now know that in today’s time cryptocurrency is changing the physical and old mode of transaction to a great extent. Today we can buy many things online through cryptocurrency. It is the popularity of cryptocurrency that has led many companies to accept cryptocurrency today.
- Another special thing about cryptocurrency is its transparency, about which you have read above, how its records are kept with the help of ledger. Due to which its transactions become very transparent.
Disadvantages of CryptoCurrency
- Perhaps the most challenging hurdle in terms of mass adoption of alternatives like cryptocurrencies is that it can be difficult to understand, especially if you are not tech-savvy. Because it is a non-government transactional financial system, it is stored via blockchain.
- There are many ways in which you can use cryptocurrencies, but most of the people using them at the moment are just using them as an investment. Which is fraught with lots of risks and ups and downs. Sometimes it gives a lot of profit and sometimes a lot of loss.
- Due to being away from the law of the government, nowadays it is used more in illegal activities.