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The Era of Virtual Currency - The Curious Cryptocurrency

Nivedita 
on 15 August 2018

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A cryptocurrency is a virtual currency which acts as a medium of exchange. There were attempts in 90s to create digital currencies though for reasons like financial problems, trusted third party approach & frauds, these attempts were deterred. In the fateful year 2009, under some mysterious tag - Satoshi Nakamoto – bitcoins came into the picture.

Bitcoins

It is a type of electronic cash. Bitcoins work without the aid of any Central bank. This is more like potential peer to peer digital payment system. BTC is more like a ‘store of value’ & not something to be used on a daily basis.

You need a Bitcoin Wallet which is to be followed by adding cash to your wallet & lastly this can be used to send & receive bitcoin cash. The famous Indian actor Amitabh Bachhan made some $17 million out of the Bitcoin Investment made almost three years back. Also Microsoft unveiled Azure block chain as one of its service. In a recent move Singapore Airlines deploys Block chain technology in Frequent Flyer

Even culturally, Block chain technology is casting impact, making its use in music festivals etc. In a more recent move, Infosys is setting up Block chain-based Trade Finance Network with Seven Banks.

The total market capitalization of the cryptocurrencies stands approximately at $228 billion and this is subject to flinching market ups & downs.

Block chain

It is a further extension of the cryptocurrency/digital currency. It is a digital ledger. This works as Incorruptible currency. Not only monetary transactions but also events will form part of the block chain technology.

It works -

  • In a shared manner
  • Has reconciled Database
  • The records are public & can be verified easily

This represents innovation in information registration + distribution. Here’s the catch - Now - No need of a trusted party. Block chain is a combination of these three technologies-

1. Internet
2. Protocol governing incentivization
3. Private Key Cryptography

This runs on a distributed network. In Block Chain, every node in the network, comes to the same conclusion.

  • Every node creates own updated version of events
  • It is not a new technology
  • Rather a combination of well-verified technologies put together in a new way

With the IoT era, this term Digital Trust becomes a rather more demanding one with more & more information of the public at large at stake. New connected devices allow the companies to capture more of data & the usage of the datasets in ways not known yet. Data turns as an insight driver to perform the SWOT analysis & exploiting more & more opportunities, converting this into products & services that are more demanding & relevant.

The customers are more & more cautious in sharing their information online with the companies other than the established brands.

Euththerem

This is a Computing platform & operating system. This works on smart contract functionality. How it functions? - It’s a network of nodes. A node acts as an administrator. It’s a way of showing how internet can work differently.

Euththerem wants to be a world computer. This helps in decentralizing & democratizing, existing client server model.

 As per Summers, Bitcoin, acts as similar to a fax machine. This is also regarded as the next Apple by coveted technology enthusiast.

Napster

It is a centrally controlled network. It’s an online service – related to music. This acts as a pioneering P2P file – sharing internet service.

Litecoin

This comes up as ‘Open source cryptographic protocol’.
This cryptocurrency in the similar way is not managed by any Central authority. Charlie Lee is the creator of Litecoin. Mathematics secured the network. It works in a fully decentralized fashion. Transfer can make instant near zero cost payments.

Ripple

Ripple is an Enterprise block chain solution. Its application is found in global payments. This cryptocurrency is Scalable & Secure. It interoperates different networks. Ripple holds the third place followed by Euththerem & Bitcoin. Saudi Arabia’s Federal Bank signs Block chain deal with Ripple. It facilitates making connections with the banks & financial institutions.

Cardano

This next generation Cryptocurrency, operates almost the same way as – Euthereum. The Platform supports – Dapps & smart contracts. It works in a decentralized fashion. This cryptocurrency has evolved out of a scientific philosophy. The Engineers form the Development Team. Embracing collection of design principles


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