The popularity of cryptocurrency is increasing day by day and growing with leaps and bounds in many countries. Even India, which had previously banned this currency has now, partially accepted it. It is going to introduce its own Crypto in the upcoming financial year. Reserve Bank of India will introduce its own Crypto, which will be known as CBDC ( Central Bank Digital currency). It will work on the same blockchain technology but will have a vigilant eye on RBI. Introduction -The basis of this currency is Cryptography. Its name is 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/cipher-known as Key. At the receiver end, it is Decrypted by another coded Key which will decipher it into plain comprehensible text.
How cryptocurrency transactedThere are 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 is validated by a series of many computers/Nodes working in the 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/category, called Blocks,which has limited space. After one group/block is filled it is attached/chained with the last block. Thus a chain of blocks is forwarded ahead and fed onto the connected computers/nodes around the world.
Miners Here comes the role of Miner’s, who validate the transactions after taking a certain fee. Then it is forwarded through the block and the 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 the next part Pros and Cons, Types of Crypto-currencies, values of different Crypto, and future prospects.—