Money as we knew it has changed, l coins and banknotes as are increasingly used. Instead, alternatives such as credit and debit cards have been introduced to make payments. Money transfers have been replaced by transfers. And so little by little attractive alternatives have appeared that have taken us even further away from the traditional method.
The governments and institutions of the countries themselves have collaborated to reduce their use. Payments that had always been made with money in cash, have become impossible and now it is necessary to pay by card. An example of this are tolls on motorways, in Spain ja do not accept cash.
In spite of the facilities and conveniences that the cards and transfers have given us, there are many aspects that can still be improved. And this has led to a new and attractive option, cryptocurrencies. A little over a decade ago they began to be used and already occupy an important place in the world economy.
Their growth has been such that many countries have regulated them or even banned them. Governments and banks feel threatened by them. But why? What are they really? Let’s start with a little bit of your story.
ORIGIN OF CRYPTOCURRENCIES
The history of cryptocurrencies comes long before Bitcoin. In the 90s great technologists tried to create digital currencies with systems like Flooz, Beenz and DigiCash. However, perhaps, due to the scarce advancement of technology, due to its limited worldwide adoption at that time, due to errors, fraud, financial problems or even discussions between the responsible team, all failed.
The cryptocurrency attempts prior to bitcoin, did not leave behind third parties. The responsible companies themselves verified and facilitated the transactions, so they continued to be a centralized payment method. All this made the idea of creating a digital currency be left aside for several years.
However, at the end of the next decade, the famous Satoshi Nakamoto understood that digital money could be real but with some slight but important changes. To this day the identity of Nakamoto is still unknown although it is speculated that it is an anonymous programmer or a group of programmers who hid under that alias. If you are interested in knowing more about Satoshi Nakamoto, at the end of the publication you will find a link that will lead you to a complete explanation about everything that is known about him.
In 2009 Nakamoto introduced Bitcoin and described it as an ‘equal-to-equal electronic cash system’. That is, without servers involved or central authority to control it. And that is how the first cryptocurrency that survived in the market and that has remained until today arrived.
WHAT ARE CRYPTOCURRENCIES?
Cryptocurrencies are a new type of digital currency based on cryptography to secure and verify transactions. These can be used as common currencies but always online, that is, designed to work as a means of exchange through the Internet. In addition, cryptocurrencies have a particularity that makes them unique: they are not under the supervision of any government or financial institution. That is why, cryptography is also responsible for the creation and supply of new units of the cryptocurrency. Technically, cryptocurrencies are limited entries in an immutable database (except in specific conditions).
There is a large number of cryptocurrencies that emerged after bitcoin. Many of them contain the word coin (currency in English) in their name. Each one with its own characteristics and applications, and classified by its market capitalization that can be consulted in CoinMarketCap.com. At the time of publication, the number one ranking is bitcoin, followed by ethereum, ripple, litecoin, EOS and bitcoin cash. There are thousands of cryptocurrencies on the market and the list is continuously expanded. In total add a market capitalization of 177,211,354,734 dollars.
Although for many it may seem an alternative to the current money, they were created to be a completely conventional payment solution.
Cryptocurrencies have several characteristics, some of which we have already mentioned. The main ones are:
- Cryptography . It is the basis of cryptocurrencies.
- Anonymous . They allow us to keep our identity hidden.
- Decentralized . It does not depend on any body or institution that controls them.
- They can not be falsified or duplicated . The cryptographic system maintains the security of the network.
- There are no intermediaries . Everything is done between people.
- Irreversible transactions . You can not cancel the transactions made.
- They are interchangeable between them . With a cryptocurrency another can be acquired.
You can read blockchain news and updates