Things you need to know about Cryptocurrency

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What is Cryptocurrency?

Cryptocurrency is nothing but digital money system that makes transactions extremely secure. Nowadays larger number of people buying and selling them. This Cryptocurrency has now become a global phenomenon. It has no physical presence at all, and no central authority involved. All the information is kept a secret and written codes as it transforms data into unreadable for an unauthorized user. Nobody can decode its data that been transmitted from one user to another.

What is Cryptocurrency mining?

In order to understand how cryptocurrency mining work, you have to understand Blockchain. So what is Blockchain? The Blockchain is virtually supported every currency, this technology operates as a public ledger or decentralized record system.

Transactions are stored into ‘blocks’, which are verified by ‘miners’ who check that the same bitcoin hasn’t been spent more than once. Anyone with an internet connection and suitable hardware can perform mining. In simple words- This process involves arranging recent transactions into blocks and try to solve a mathematical puzzle. The miners who first solves the puzzle get to place the next block on Blockchain and rewarded with a unit of the currency.

Top 3 Alternative to Bitcoin

  • Litecoin

Litecoin was launched in the year 2011, It was created by MIT graduate. Litecoin is among popular cryptocurrency following bitcoin and often referred as ‘Silver Coin’ Litecoin is using “scrypt” as proof of work and it is not controlled by any central authority. In many ways Litecoin is similar to bitcoin, you will get faster transaction confirmation all thanks to faster block generation rate. Not only developers but a large number of merchants now accept Litecoin.

  • Ripple

Ripple offers fast, reliable, and low-cost global transaction. It was released in 2012, and it was founded by a single company name Ripple Labs. Ripple doesn’t have fluctuating amount of its currency like bitcoin. There is no mining in Ripple, it reduces both computing power and network latency. There are 100 billion XPR tokens created by Ripple and most of the tokens are owned by Ripple Labs. Ripple labs currently owned around $60 billion worth of cryptocurrency.

  • Dash

Dash is also known as Darkcoin, is a more secure version of Bitcoin. Dash works on a decentralized network that makes transactions more secure and untraceable. Dash launch in 2014, It has gain popularity in a short span of time. Dash was created by Even Duffield, you can mined Dash using a CPU or GPU. In March 2015, it was rebranded from Darkcoin to Dash (Digital Cash).

There are few Disadvantages of Cryptocurrency

  • Not Widely Acceptable

Cryptocurrency still only acceptable to a few group of online merchants.

  • What If You Lost Your Wallets

In case of hard drive crash or your wallet files corrupted, your currency has essentially been “Lost”. You can’t do anything to recover it. In that case, your coin will be forever lost in the system.

  • Fluctuation

The value of Bitcoin is continually fluctuating. This will cause bitcoin-accepting sites to frequently change prices. This also cause trouble if a refund for a product is being made.

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