Cryptocurrencies: The Beginning of Blockchain’s Technological Rise

How does cryptocurrency work?

Cryptocurrency can be described as decentralized virtual money. Cryptocurrency works on blockchain technology and is secured by cryptography. Certain platforms these days also work on Binance smart chain technology.

What is cryptography?

Cryptography technology in cryptocurrency is explained as a method of using encryption or decryption. It is useful in securing data from a third party.

What is blockchain technology?

Blockchain technology can be explained as a block set coding information s of transactions. This information is further traded via a digital letter and is distributed in the complete network.

This data can be stored on each node over the complete blockchain network. This makes the transaction more secure and it is impossible to change the information or to hack the system.

After that, all this information is verified and validated by every node after which you are allowed to proceed with the process of the transaction.

What is the Binance smart chain?

Binance smart chain is also a type of blockchain and it runs along with the Binance chain. It is an alternative to Ethereum and some of the other leading Defi platforms. ACUN, WODEXTOKEN, FancyPepper, MARS INU are some examples that work on this technology.

Cryptocurrency though is still not legalized within all countries but it is emerging as a good option. Many companies like PayPal have also come forward to invest in cryptocurrency.

Cryptocurrency has influenced several people all across the globe. People who wish to invest in trade or stock market for cryptocurrency is of great use.

Bitcoin, Ethereum, Litecoin, XRP, etc. are some of the famous cryptocurrencies.

Why should you prefer cryptocurrency?

You may think that cryptocurrency is similar to online payment methods. Undoubtedly cryptocurrency can be used to buy goods online or to trade online. But on comparing the mode of payment cryptocurrency has its benefits.

Though it is not issued by the government and is a decentralized form of currency is has its benefits. Cryptocurrency is free from any kind of third-party interference.

Unlike another mode of online payment done by banks or government-issued currency payments done via cryptocurrency never fail. Issues such as failure of transaction due to any reason like transfer limit or account getting hacked are not possible. Nor do you have to face any server-related technical issues while making payment.

Since cryptocurrency is free of any third-party interference that is why it charges you almost no or very few transaction fees. There is no limit to making transactions which means you have 24/7 access to your money.

Is cryptocurrency legal?

It is legal in the United States. But in certain countries, it is still not legalized. To make it legal or not is in the hands of the government of each country. Talking about India you must note that it is not legal here but yes people do invest in cryptocurrencies and also trade in them.

People see cryptocurrency as a developing form of investment which in later years would give a major contribution to the economy of the country.

Author Bio:

Prashant Pujara is the founder and CEO of MultiQoS Technologies, a renowned react native development company in USA specialising in Android and iOS apps. He has over ten years of app development expertise, with a particular focus on mobile app development for various platforms.