Things to know about Crypto-Currencies

Crypto-currency is a form of digital currency facilitated using cryptographic technology. Cryptography is an act of writing in code or cipher, also known as the science of analyzing and deciphering codes and ciphers.  One of the most well-known examples of crypto-currency is ‘Bitcoin’. Initialized in 2009, it was the first ever crypto-currency with an online micro-payment system based on open-source software. After that, many more crypto-currencies have been brought up.

The crypto-currency market is rapid and intense. Every new day new crypto-currencies are seen evolving and the old ones fade out. The old players in this market grow wealthy and the ones who act as investors are seen losing money.

Properties of crypto-currencies:

The properties of crypto-currency can be divided into two main types; Transactional Properties and Monetary Properties.

Transactional Properties:

  • Irreversibility of transactions: A transaction once confirmed, cannot be reversed. No one can do it, not you, not even your bank can help in reversing the transaction once you have sent the money. Even if your account gets hacked and the money is stolen, it cannot be reversed back to your account.
  • Pseudonymous: The accounts and transactions under crypto-currency have got no connection with the real-world identities. A person receives Bitcoin on an address consisting of 30-charactered code. With the help of this address it is possible to monitor the transaction flow, but it not at all possible to gain the real identities of the account users.
  • Worldwide network: The transactions that take place are very fast and the crypto-currency network is spread across the whole world. The transactions are even confirmed in around couple of minutes. These transactions happen on a global computer network itself, and no physical locations play a role in the other working trends of crypto-currencies.
  • Safe and secure: The crypto-currency transactions and funds available in ones account are secured using the cryptographic codes. The owner of the crypto-currency is provided with a private key, which is only known to him and only he can send the crypto-currency. The codes are a combination of big numerical characters and are so strongly built and maintained that it is impossible for anyone to break them.
  • No permit required: A person need not have permission from anyone to utilize the crypto-currency from his account. For using or transferring Bitcoins, one just needs to download the application made available for it. The application is available for free, and once it is downloaded, the person can use, receive or send Bitcoins or other forms of crypto-currencies.

Monetary Properties:

  • Restrained supply: Of the various crypto-currencies present in the world currently, many of them provide a limited supply of tokens. In case of Bitcoin, their supplies of tokens are decreasing with time and it is estimated to have completed the distribution of all tokens somewhere around the year 2100. The supply of tokens is regulated by the proper scheduling encrypted in the cryptographic codes. So with the help of this scheduling, the end of supply of tokens can be estimated roughly.
  • Zero debt: The debts help create the fiat-money in your bank account. The numbers that are seen on one’s account journal are no other thing but debts. But in case of crypt-currency, they are not represented in the form of debts. Instead, crypto-currencies are a form of their own selves.

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