What is Cryptocurrency?

Before we learn what Cryptocurrency is, we must first understand the Blockchain Technology.

A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered without consensus of the network. This allows the participants to verify and audit transactions inexpensively. A blockchain database is managed autonomously using a peer-to-peer network and a distributed time-stamping. They are authenticated by mass collaboration powered by collective self-interests. The result is a robust workflow where uncertainty regarding data security is minimal. The use of blockchain confirms that each unit of value was transferred only once thereby solving the long-standing problem of double spending. This blockchain-based exchange of value can be completed quicker, safer and cheaper than with traditional systems. A blockchain can assign title rights because, when properly set up to detail the exchange agreement, it provides a record that compels offer and acceptance.

So what is a Cryptocurrency then? A cryptocurrency (or crypto currency) is digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrency is a kind of digital currency, virtual currency or alternative currency. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, i.e. blockchain that serves as a public financial transaction database.

According to Merriam Webster dictionary, Cryptocurrency any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. As of May 2018, there were over 17 million bitcoins in circulation with a total market value of over $140 billion. Bitcoin's success has spawned a number of competing cryptocurrencies, such as Ethereum, Litecoin etc

Cryptocurrencies make it easier to transfer funds between two parties in a transaction; these transfers are facilitated through the use of public and private keys for security purposes. These fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers

Source: www.wikipedia.com, www.investopdia.com