Popularity of Crypocurrency is increasing day-by-day and growing with leaps and bounds in many countries. Even India,which had preveosly banned this currency is now, partially accepted it . It is itself going to introduce it’s own Crypto from the oncoming financial year.
Reserve bank of India will introduce it’s own Crpto, which will be known as CBDC ( Central Bank Digital currency) .It will work on same Block-Chain-Technology, but will have an vigilant eye on it by RBI.
Introduction -The basis of this currency is Cryptography .Its name derived from the Greek word –Krypto, meaning hidden or secret. In this ,currency is in digital form only and first Encrypted by coding-converting plain text information/currency denomination into a code/cipfer-known as Key.At the receiver end it is Decrypted by another coded Key which will decipher it into plain comprehensible text.
There are as as many as 8000 Cryoto-currencies in praxis around the world. Bitcoin was introduced first, so it is unofficially known as the father of all Cryptocurrency. It was started by Satoshi Nakamoto (It’s a Japanese Name) in 2009.
Basis of Crypto:- It is not dependent on any bank for the validation of transactions but validated by series of many computers/Nodes working in same algorithm .Here distributed ledger technology-known as Block-chain-technology is used.
What is Block-chain-technology ? :-In this transaction records are stored in a group/categories, called Blocks ,which has limited space. After one group/block is filled it is attached / chained with the last block. Thus a chain of block is forwarded ahead and fed onto the connected computers / nodes around the world.
Miners Here comes the roll of Miner’s,who validate the transactions after taking certain fee. Then it is forwarded through the block and recipient credit it into his/ her Wallet by the decryption 🔑 .
Main Advantages– 1-No third party involved 2-Grants everyone direct access to global economy 3-Trusted transaction 4-Transparency 5-Reduced cost 6-It can’t be altered ,deleted or stopped.
——-to be continued in next part Pros and Cons, Types of Crpto-currencies, values of different Crypto and future prospects.—