A cryptocurrency is a digital medium of exchange. The first cryptocurrency that started operating was BITCOIN in 2008 and, since then, many others with different characteristics have appeared. protocols such as Litecoin, Ethereum, Ripple, Dogecoin.
In cryptocurrency systems, the security, integrity and balance of your account statements (accounting) is guaranteed by means of a network of agents (segmented file transfer or multi-source file transfer) that are verified (mistrust) mutually called miners, which are, for the most part, public in general and actively protect the network (the network) by maintaining a high rate of processing of algorithms, in order to have the opportunity to receive a small tip, which is distributed in a random manner.
Breaking the existing security in a cryptocurrency is mathematically possible, but the cost to achieve it would be unacceptably high. For example, an attacker trying to break the Bitcoin work test system would need more computational power than the entire network (swarm) of all the miners in the system, and even then, it would only have a probability of success. 50% (authentication round number), in other words, breaking the security of Bitcoin would require a capacity superior to that of technology companies the size of Google.
It is predicted that quantum computing could become a reality in the future, which would break the balance if developers could not implement the system in time to use quantum-quantum algorithms, as it is a proprietary technology.
The cryptocurrencies make possible the so-called Internet of value, also known by the abbreviations IoV (from the English Internet of value), also called Internet of money: they are Internet applications that allow the exchange of value in the form of cryptocurrencies. This value can be contracts, intellectual property, shares or any property of something with value. Things of value could already be exchanged before using payment systems such as Paypal. However, the difference between paying with something like Paypal and paying with a cryptocurrency is that paying with PayPal requires payment to be made through private networks such as credit cards and banks, while payment using cryptocurrencies does not have intermediaries. It goes directly from the buyer to the seller. In this way, there is a system of universal value transfer, free of intermediation.
This system:
-It reduces the cost of the transaction, since there is no intermediation.
-Reduce times Although online payments are fast, the settlements between the parties take time and the seller receives the amount days after the payment. With cryptocurrencies, the delay is of the order of minutes.
-Eliminates the need to use financial agents to make transactions.
Web pages used:
-https://en.wikipedia.org/wiki/Cryptocurrency