The talk of digital world today is the rise of cryptocurrency. What is cryptocurrency? How does it work? We all know that everyone who heard this trend has a lot of questions on their mind. So, here are some answers to your questions.
What is Cryptocurrency?
"A digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets." - Wikipedia
How does Cryptocurrency work?
When someone requests a transaction, it will proceed to Peer-to-Peer network consist of computer known as nodes. The nodes will validate the transaction and the status of the users known as algorithm. Once the transaction was verified it will now involve cyrptocurrency, records and other information. After verification, the transaction is now combined with other transactions to make a new block of data for the ledger. When the new block was already added to the existing blockchain, it became permanent and can't change, then the transaction is done.
What are the advantages of Cryptocurrency?
A. Fraud
Cryptocurrencies are digital and cannot be reversed by the sender, as with credit card charge-backs.
B. Identity Theft
A cryptocurrency used "push" mechanism that let the holder of cryptocurrency send exactly to the recipient with no further information.
C. Prompt Settlement
When you bought a real property it has some involvement such as (Lawyer, Notary) with these steps it cause delays to your transaction. Cryptocurrency is a big help because this is like a "large property rights database" that can be designed to remove third party approvals and externals facts or to be done on a specific time.
D. Lower Fees
Usually the transaction fees for cryptocurrency are changing due to the reason that miners are compensated by the network. This service is like a Paypal, it does cash but does not accept or transfer bitcoin.