When you see the word root “crypto” in the English language, it comes from the Greek, meaning “hidden” or “private.” From it, we get words like “encryption” and “decryption,” which relate to the coding of a message, and its decoding once it’s received.
Even the English word “crypt”—which uses the Greek root in its purest form—refers to a private hiding place, a sanctuary for the remains of a loved one.
Cryptocurrency, then, means money that is made hidden and private—and therefore secure—by means of encryption, or coding.
All aspects of cryptocurrency are protected by long and complicated blocks of code, each of which is unique to the item or person it’s protecting. As an investor, or someone taking part in a transaction, you’re identified by a one-of-a-kind code, as is the person or company with whom you’re doing business.
Each “coin” of cryptocurrency itself has its own code, and smaller denominations have their own, as well, depending on what amount is needed for a transaction.
Finally, the transaction itself is identified with its own code. Layer upon layer of encryption is one of the things that makes cryptocurrency unique, secure, and anonymous if you so choose. And all that coding and concealment is what gives cryptocurrency its apt name summarily referred to as “Cryptography”
Cryptocurrency is simply a digital or virtual currency. It is the direct opposite of fiat currency or paper money.
Digital or cryptocurrencies are used for online transactions and payments.
Bitcoin, Ethereum, are major examples of cryptocurrencies while Pounds, Naira, Dollar, Euro are examples of fiat currencies or paper money.
“CRYPTOCURRENCY is the future”
Cryptocurrency operations are not centralized, it’s a digital currency in which encryption techniques are used to regulate the generation of currency and verify the transfer of funds, operating independently from the central bank.
The digital world has made people convenient without realizing it, you can talk to people all over, you can snap chat everyone around you and send over, you can do video calls via Skype and WhatsApp, etc., so indeed the world is going digital and currency has to go with this evolution.
What E-mail did to post-office is what Crypto-currency will to do the Banks
Bill Gates refers to this as “Unbanking the Bank”
FEATURES OF CRYPTOCURRENCY
These are some unique features of cryptocurrency which make it stand out amongst all others
- Decentralized: One of the key aspects of cryptocurrency is its decentralized nature and open-source system. This unique aspect gives confidence to users to choose the cryptocurrency neutral field of decentralized finance over the problems of centralized monetary services. This unique feature has transformed the conventional notions of economics and lead to a paradigm shift for every financial attribute.
- User-friendly: Cryptocurrency provides a network between the users which is popularly known as Peer to Peer Exchange, which enables you to send e-currency from one device to another, anytime at any place in the globe without any limitation unlike the conventional banking system with so many delays and protocols.
- Safe: Every cryptocurrency transaction is confirmed and protected by high-level encryption. The cyber codes used in these transactions are encrypted as per industry standards. Besides secured encryption, cryptocurrency offers highly developed security attributes like two-part authentication, safe user-side encryption.
- Nominal Cost Unlike usual financial services, bank Charges, the bitcoin system offers cost-free money transactions throughout the world, except a voluntary fare to expedite the transfer.
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