Cryptocurrency – the background

What is Cryptocurrency? – Cryptocurrency is a virtual currency that is used as a mode of exchange and is secured with cryptography, leaving negligible possibilities of forging. Unless some specified conditions are fulfilled, changing an entry becomes difficult.

If you are wondering what cryptography is, here is what you need to know; it is generating of codes that allow confidentiality of information. Cryptography converts the data into an unreadable format for someone who is not an authorized user.

 

Back in the 90s, systems like DigiCash, Beenz and Flooz attempted creating such virtual currencies, however, due to various inevitable issues like financial glitches, fraud and internal clashes, the whole idea of having digital currency failed terribly. After the failures of these ideas, digital currencies weren’t reevaluated for quite some time.

 

In 2009, a group of programmers under the name Satoshi Nakamoto presented the first blockchain based cryptocurrency and called it Bitcoin. It was considered as ‘peer-to-peer electronic cash system’, and was totally decentralized.

While there are numerous alternatives, Bitcoin is still one of the most popular and valuable cryptocurrency.

 

Bitcoin uses the blockchain technology as it’s central function to store an online book-of-records for all the transactions, and provides a data structure for the book-of-records that is quite safe from hacking and almost impossible to copy or forge the transaction history.
However, though technologies have the potential of being abused, only small groups have been observed attempting it.

Since the cryptocurrencies aren’t real and don’t have a central repository, there are chances of a complete wipe-out in case the computer crashes without back-up, or a loss of the privacy key.

EOS blockchain is one of the most recent projects entering the cryptocurrency market. EOS blockchain aims in becoming a decentralized operating system, to support the industrial-scale decentralized applications, and has claimed to have the below two features, that has caught a lot of attention:

  1. Plans over completely removing the transaction fees
  2. Ensuring an ability to handle millions of transactions per second.

 

EOS blockchain is going to be a significant blockchain in the coming years, facilitating, quick, free and accessible transactions.